Texas Insurance Code 1109.001 – Applicability of Chapter
(a) This chapter applies to proceeds held and owing by a life insurance company engaged in the business of insurance in this state if:
(1) the last known address, according to the company’s records, of the person entitled to the proceeds is located in this state; and
(2) the proceeds have been unclaimed and unpaid for at least three years after the date, according to the company’s records, that the proceeds became due and payable under a life or endowment insurance policy or annuity contract that has matured or terminated.
(b) If a person other than the insured or annuitant is entitled to the proceeds and that person’s address is not known to the company or if the identity of the person entitled to the proceeds is not certain from the company’s records, it is presumed that the last known address of the person entitled to the proceeds is the same as the last known address of the insured or annuitant according to the company’s records.
Terms Used In Texas Insurance Code 1109.001
- 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.
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Person: includes corporation, organization, government or governmental subdivision or agency, business trust, estate, trust, partnership, association, and any other legal entity. See Texas Government Code 311.005
(c) For purposes of Subsection (a), a life insurance policy not matured by proof of the death of the insured is considered to be matured and the proceeds of the policy are considered to be due and payable only if the policy is in force at the time the insured attained the limiting age under the mortality table on which the reserve is based.
(d) An annuity or other obligation, the payment of which is conditioned on the continued life of any individual, is not considered due and payable for purposes of Subsection (a) without proof that the individual was alive at the time or times required by the contract.
(e) Proceeds otherwise admittedly due and payable under a life or endowment insurance policy or annuity contract that has matured or terminated are considered to be held and owing even if the policy or contract has not been surrendered as required.