Texas Insurance Code 1114.005 – Financed Purchase
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(a) If a withdrawal, surrender, or borrowing involving the policy values of an existing policy is used to pay premiums on a new policy that is owned by the same policyholder and is issued by the same insurer not earlier than four months before the effective date of the new policy or 13 months after the effective date of the new policy, it is deemed prima facie evidence of the policyholder’s intent to finance the purchase of the new policy with existing policy values.
(b) Subsection (a) applies only to regulatory review of an individual transaction.
Terms Used In Texas Insurance Code 1114.005
- Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
(c) The prima facie standard under Subsection (a) is not intended to increase or decrease the monitoring obligations contained in Section 1114.052(g).