Texas Insurance Code 1104.003 – Authority to Contract
(a) Subject to this subchapter, a minor 14 years of age or older who is without a guardian of the estate of the minor may:
(1) contract for or otherwise acquire a life, term, or endowment insurance policy or an annuity contract, including:
(A) applying for the policy or contract; and
(B) making agreements with respect to the policy or contract or a right, privilege, or benefit under the policy or contract;
(2) exercise all rights and powers in regard to the policy or contract in the same manner as an adult; and
(3) surrender an interest in the policy or contract and give a discharge for a benefit paid under the policy or contract.
(b) An insurance policy acquired by a minor under this subchapter must:
(1) be owned by the minor; and
(2) insure the life of:
(A) the minor;
(B) a spouse, child, parent, grandparent, or sibling of the minor; or
(C) another in whose life the minor has an insurable interest.
Terms Used In Texas Insurance Code 1104.003
- Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- Contract: A legal written agreement that becomes binding when signed.
- Guardian: A person legally empowered and charged with the duty of taking care of and managing the property of another person who because of age, intellect, or health, is incapable of managing his (her) own affairs.
(c) A minor who acquires an annuity contract under this subchapter is the annuitant of the contract during the minor’s life.
(d) A minor who acquires an insurance policy or an annuity contract under this subchapter, the estate of the minor, or a spouse, child, parent, grandparent, or sibling of the minor must be the beneficiary of the policy or, in the case of an annuity contract, of the death benefit of the contract.