(a) In this section, “contingent deferred annuity contract” means an annuity contract in which a life insurer makes periodic payments for the annuitant’s lifetime beginning when a designated investment that is not owned or held by the insurer is depleted to an amount specified by the contract due to contractually permitted withdrawals, market performance, fees, or other charges.
(b) The commissioner by rule may adopt reasonable standards for contingent deferred annuity contracts, including standards for:
(1) the procedures for department review and approval of contingent deferred annuity contracts and the criteria the department will use in approving the contracts;
(2) replacement, suitability, and disclosure requirements that are consistent with applicable model regulations developed by the National Association of Insurance Commissioners; and
(3) advertising of contingent deferred annuity contracts that are consistent with applicable model regulations developed by the National Association of Insurance Commissioners.

Terms Used In Texas Insurance Code 1116.003

  • Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
  • Contract: A legal written agreement that becomes binding when signed.
  • Rule: includes regulation. See Texas Government Code 311.005
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