Texas Insurance Code 1110.008 – Loan Value of Policy; Termination of Policy Based On Change in Interest Rate
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(a) The loan value of a life insurance policy shall be determined in accordance with Section 1101.009.
(b) A life insurance policy may not be terminated in a policy year solely as the result of a change in the policy loan interest rate during that policy year, and the life insurer shall maintain coverage during that policy year until the time at which coverage would otherwise have terminated if there had been no change in the interest rate.
Terms Used In Texas Insurance Code 1110.008
- Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC
- Year: means 12 consecutive months. See Texas Government Code 311.005