Section 1107.004 - Optional Termination Provision(a) Notwithstanding the requirements of Section 1107.003, an annuity contract may provide that the company has the option to terminate the contract by making a cash payment of the then present value of that portion of the paid-up annuity benefit if:(1) no considerations are received under the contract for two years; and(2) at maturity, payments on the portion of the paid-up annuity benefit on the plan stipulated in the contract attributable to considerations paid before that period would be less than $20 each month.(b) If an annuity contract contains a provision permitted under Subsection (a): (1) the present value of a portion of a paid-up annuity benefit paid under that provision must be computed on the basis of the mortality table, if any, and interest rates specified in the contract for determining the paid-up annuity benefit; and(2) a payment made under that provision relieves the company of any further obligation under the contract.Tex. Ins. Code § 1107.004
Amended by Acts 2003, 78th Leg., ch. 869, Sec. 1, eff. 6/20/2003.Added by Acts 2001, 77th Leg., ch. 1419, Sec. 2, eff. 6/1/2003.