Section 1105.003 - Exemptions(a) This chapter does not apply to:(4) an annuity or reversionary annuity contract;(5) a term policy of uniform amount that:(A) does not provide guaranteed nonforfeiture or endowment benefits or renewal of the policy;(B) has a term of 20 years or less that expires before the insured reaches 71 years of age; and(C) has uniform premiums that are payable during the entire term of the policy;(6) a term policy of decreasing amount: (A) that does not provide guaranteed nonforfeiture or endowment benefits; and(B) on which each adjusted premium, computed as specified by Subchapter B or D, is less than the adjusted premium computed in that manner for a term policy of uniform amount, or a renewal of a term policy of uniform amount, that:(i) does not provide guaranteed nonforfeiture or endowment benefits;(ii) is issued at the same age and for the same initial amount of insurance;(iii) has a term of 20 years or less and expires before the insured reaches 71 years of age; and(iv) has uniform premiums that are payable during the entire term of the policy;(7) a policy: (A) that does not provide guaranteed nonforfeiture or endowment benefits; and(B) for which no cash surrender value, if any, or present value of any paid-up nonforfeiture benefit, at the beginning of any policy year, computed as specified by Section 1105.007, 1105.008, 1105.009, Subchapter B, or Subchapter D, exceeds 2-1/2 percent of the amount of insurance at the beginning of the same policy year;(8) a policy delivered outside this state through an agent or other representative of the company that issued the policy; or(9) a policy that: (A) does not provide for cash values or nonforfeiture values; and(B) meets the requirements of Section 884.403(b).(b) For purposes of determining the applicability of this chapter, the age at expiry of a joint term life insurance policy is the age at expiry of the oldest insured life on that date.Tex. Ins. Code § 1105.003
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 2, eff. 6/1/2003.