Texas Insurance Code 425.060 – Applicability of Calendar Year Statutory Valuation Interest Rates
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Terms Used In Texas Insurance Code 425.060
- 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.
- Life insurance: means contracts that incorporate mortality risk, including annuity and pure endowment contracts, and as may be specified in the valuation manual. See Texas Insurance Code 425.052
- Year: means 12 consecutive months. See Texas Government Code 311.005
The calendar year statutory valuation interest rates as defined by Sections 425.061, 425.062, and 425.063 are the interest rates used in determining the minimum standard for the valuation of:
(1) a life insurance policy to which Subchapter B, Chapter 1105, applies;
(2) an individual annuity or pure endowment contract issued on or after January 1, 1982;
(3) an annuity or pure endowment purchased on or after January 1, 1982, under a group annuity or pure endowment contract; or
(4) the net increase, if any, in a calendar year after January 1, 1982, in amounts held under a guaranteed interest contract.