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A BILL TO BE ENTITLED
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AN ACT
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relating to limiting increases in premium for life insurance |
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policies. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter D, Chapter 1101, Life Insurance, is amended |
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by adding Section 1101.157 to read as follows: |
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Sec. 1101.157. LIMIT ON INCREASES IN PREMIUMS, COSTS, |
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CHARGES, EXPENSES, OR FEES. (a) |
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In this section: |
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(1) “Insurer” has the meaning assigned by Section 1102.001, |
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Insurance Code. |
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(2) “Insurance policy” has the meaning assigned by Section |
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1102.001, Insurance Code. |
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(b) An insurer may not increase any premium, cost, charge, |
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administrative expense, or fee associated with a life insurance |
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policy by more than 10 percent in any given year. |
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(c) Subsection (b), does not apply to an increase in |
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premium, cost, charge, expense, or fee if the schedule and amount of |
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the increase is disclosed at the time of policy issuance, including |
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increases in premium based on attained age. |
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SECTION 2. This Act takes effect September 1, 2017. |