SECTION 4.616. Substitute or Change of Insured Riders

(a) The rider must contain a statement requiring submission of an application signed by both the owner and the substitute insured.

(b) The rider may require evidence of insurability of the substitute insured.

(c) The following must be clearly specified:

(1) policy date;

(2) face amount;

(3) premium structure, including a description of the determination of premiums for a substitute insured; and

(4) the plan of insurance.

(d) The disposition of the following items must be clearly described:

(1) indebtedness under the old policy;

(2) inclusion or exclusion of any supplementary benefits upon exchange;

(3) dividends, if a participating policy; and

(4) adjustments of reserves and cash values.

Source Note: The provisions of this §4.616 adopted to be effective September 20, 1982, 7 TexReg 3244; 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