Texas Insurance Code 1551.306 – Payment of Excess Cost Over Basic Coverage Contribution
(a) The board of trustees shall apply the amount of any employer contribution for optional coverages to the excess of the cost of the basic and optional coverages for which an individual eligible to participate in the group benefits program under § 1551.101 or 1551.102 applies over the basic coverage contribution.
(b) Except as provided by § 1551.309, if a participant applies for basic and optional coverages for which the cost exceeds the employer contributions for those coverages under this chapter, the participant shall authorize in a form and manner satisfactory to the board of trustees a deduction from the participant’s monthly compensation or monthly annuity equal to the difference between:
(1) the cost of basic and optional coverages for which the participant applies; and
(2) the employer contributions for basic and optional coverages.
Terms Used In Texas Insurance Code 1551.306
- 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.