Texas Department of Insurance
www.tdi.state.tx.us - Consumer Helpline 1-800-252-3439
Learn more about insurance industry licensing and regulatory requirements, as well as the latest Life & Health rules, Property & Casualty form and rate filing approvals and disapprovals, compliance workshops and other key industry information. Related Links Agent and Company AlertZero Premium Life Insurance or No Cost to the Insured PlansIt has come to the attention of the Texas Department of Insurance ("Department") that a nontraditional product is being offered in the Stranger-Owned Life Insurance (STOLI) market. Texas agents are being solicited to assist in the sale of what are frequently called "estate maximization plans," "zero premium life insurance" or "no cost to the insured" policies to consumers, most commonly elderly persons between the ages of 65 and 85. The Department is investigating and gathering details regarding these offerings. This bulletin is to alert you as a Texas insurance agent to exercise caution with respect to these transactions. Life insurance helps protect the people who depend on the insured for financial support. It can help pay final expenses and other expenses that the insured would have paid for through earnings, including mortgage payments, bills, dependent or child care and college tuition. Insurance agents and companies must be licensed by the Department to legally sell life insurance in the state. Texas law provides that an individual may consent to another person purchasing insurance on his or her life. Texas law also allows owners of life insurance policies to sell existing life insurance policies to entities called viatical or life settlement providers. Viatical or life settlement providers and brokers are required to hold a certificate of registration issued by the Department in order to do business in Texas. If, as a Texas agent, you are considering:
the Department offers the following suggestions:
The Texas Insurance Code gives insurers and agents an affirmative duty to report suspicion of fraud, and provides certain immunities from civil liability for reporting suspected fraud to the Department. Insurance companies have an obligation to notify the Department if they terminate an agent for cause. Texas law also provides for the assessment of various administrative penalties, including the revocation of an insurance agent's license, for failure to comply with any specific provision of the Texas Insurance Code, including, but not limited to, those regarding:
Insurance Industry Resource
NoticesTexas is a member of the new Interstate Insurance Product Regulation Compact, created to improve the efficiency and effectiveness of the insurance marketplace for regulators, consumers and the industry. More information is available at the Compact's web site. Key LinksLinks to Key / Most Requested Industry Pages Managed Care Payor Managed Care Payor Resource Page Related Web Link Uniform Certificate of Authority Application ROC Reports on TDI Web Site ROC Reports at www.tdi.state.tx.us/wc/regulation/index/roc.html SB 14 SB14 FAQ Windstorm Windstorm Application Status and Re-Print Certificates Consumer Information Directory Listing
Industry Information Directory Listing
For more information contact: PIO@tdi.state.tx.us |