SECTION 4.1111. Unfair, Discriminatory or Deceptive Practices Prohibited

(a) Acceleration-of-life-insurance benefit provisions are subject to Insurance Code Chapter 541, concerning Unfair Methods of Competition and Unfair or Deceptive Acts or Practices, and rules promulgated under Chapter 541.

(b) Insurers offering acceleration-of-life-insurance benefits may not engage in unfair, discriminatory, or deceptive practices in relation to the offer, sale, or administration of acceleration-of-life-insurance benefits, including, but not limited to, the following practices:

(1) reclassification of the insured as a result of payment of the benefit specified in an acceleration-of-life-insurance benefit provision to a class of risk less favorable than the class of risk to which the insured originally belonged;

(2) unfair discrimination among insureds with differing qualifying events; or

(3) unfair discrimination among insureds with similar qualifying events.

Source Note: The provisions of this §4.1111 adopted to be effective March 1, 1998, 23 TexReg 1585; transferred effective April 16, 1999, 24 TexReg 3092; amended to be effective June 23, 2008, 33 TexReg 4884; transferred effective September 1, 2023, as published in the July 28, 2023, issue of the Texas Register, 48 TexReg 4127; amended to be effective January 24, 2024, 49 TexReg 250