Texas Insurance Code 1152.110 – Private Placement Contracts
(a) In this section, “private placement contract” means a variable annuity contract or variable life insurance policy that is:
(1) issued exclusively to an accredited investor or qualified purchaser, as those terms are defined by the Securities Act of 1933 (15 U.S.C. § 77a et seq.), the Investment Company Act of 1940 (15 U.S.C. § 80a-1 et seq.), or the regulations promulgated under either of those acts; and
(2) offered for sale and sold in a transaction that is exempt from registration under the Securities Act of 1933 (15 U.S.C. § 77a et seq.).
(b) A private placement contract may provide that the insurer issuing the contract may defer payments or advances for loans, cash surrender values, or death benefits until the separate account assets, or any portion of the separate account assets, comprising rights to loans, cash surrender values, or death benefits can be converted to cash under any applicable terms.
Terms Used In Texas Insurance Code 1152.110
- 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.
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Contract: A legal written agreement that becomes binding when signed.
(c) § 1103.104 does not apply to the computation of the interest on the proceeds of a private placement contract.