Subchapter M. MINIMUM VALUATION STANDARDS FOR PLANS WITH VARYING NONFORFEITURE BENEFITS
28 TAC §§3.1201-3.1204
The Commissioner of Insurance adopts the repeal of §3.309, concerning minimum reserves for indeterminate premium reduction policies and §§3.1201-3.1204, concerning minimum valuation standards for plans with varying nonforfeiture benefits. The repeal of the sections is adopted without changes to the proposal as published in the November 8, 2002 issue of the Texas Register (27 TexReg 10555).
The repeal of §3.309 eliminates an obsolete provision. The repeal of §§3.1201-3.1204 eliminates differences between the repealed sections and §7.18 which adopts the National Association of Insurance Commissioners Accounting Practices and Procedures Manual (Manual). Actuarial Guideline XXXIII in the Manual also prescribes minimum valuation standards for plans with varying nonforfeiture benefits. The repeal of the sections will further the objective of the Manual to codify statutory accounting guidance into a single source to improve consistency in the regulations applicable to the accounting standards, treatments and practices of insurers doing business in Texas.
The repeal of the sections provides improved consistency in the regulations applicable to the accounting standards, treatments and practices of insurers doing business in Texas as well as enhanced comparability of financial statements of insurers domiciled in different states.
No comments were received regarding the proposed repeal.
The repeal of the sections is adopted under the Insurance Code Article 3.28 and §36.001. Article 3.28 is the Standard Valuation Law for life insurance policies. Article 3.28, §§3 and 11 authorize the Commissioner to adopt actuarial tables and regulations concerning computations under the Standard Valuation Law. Section 36.001 authorizes the Commissioner to adopt rules for the conduct and execution of the duties and functions of the department as authorized by statute.
§3.309. Minimum Reserves.
§3.1201. Scope.
§3.1202. Minimum Valuation Standards for Life Insurance Plans.
§3.1203. Minimum Valuation Standards for Certain Annuity Contracts and Annuity Riders.
§3.1204. Minimum Valuation Standards for Other Annuity Plans.