Texas Insurance Code 1101.202 – Definitions
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Terms Used In Texas Insurance Code 1101.202
- Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC
In this subchapter:
(1) “Adverse change” means a change by an insurer in the insurer’s current scale of charges applied to a policy that increases a premium or charge to a policy owner.
(2) “Current scale of charges” means the scale or schedule of non-guaranteed charges in effect for a policy during the period of time immediately before an adverse change to the policy.
(3) “Non-guaranteed charges” means the scale or schedule of charges in a policy provision at the time the policy was issued that may be changed at the insurer’s discretion without the consent or request of the policy owner. The term does not include a policy loan interest rate charged on a policy loan.