Texas Insurance Code 1107.053 – Contract With Fixed, Scheduled Considerations
(a) For an annuity contract that provides for the payment of fixed, scheduled considerations, the minimum nonforfeiture amount is computed in the same manner as the minimum nonforfeiture amount for an annuity contract with flexible considerations that are paid annually, except that:
(1) the amount of net consideration for a contract year is computed using an annual contract charge equal to the lesser of:
(A) $30; or
(B) 10 percent of the amount of the gross annual considerations paid on the contract; and
(2) the percentage of the net consideration amount for the first contract year to be used to compute the minimum nonforfeiture amount is 65 percent of the amount of net consideration for the first contract year plus 22.5 percent of the amount by which the amount of net consideration for the first contract year exceeds the lesser of:
(A) the amount of net consideration for the second contract year; or
(B) the amount of net consideration for the third contract year.
(b) The computation made under Subsection (a) must assume that the considerations are paid annually in advance.
Terms Used In Texas Insurance Code 1107.053
- 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.
- Contract: A legal written agreement that becomes binding when signed.
- Year: means 12 consecutive months. See Texas Government Code 311.005