Posted by (American Life Insurance Guide(Internet News) The Texas House of Representatives approved a bill on the 18th thatWhole life insuranceOf issuing companies have set new disclosure requirements.
The Texas House of Representatives passed the bill with an overwhelming ratio of 147 to 0:House Bill 207.
What insurance companies must disclose
The bill sets up new disclosure standards. After January 2020, 1, if life insurance needs to make some changes to certain life insurance policy charges, it must disclose in accordance with the new standards.
The Act applies to things such asUniversal Life Insurance(UL) insurance policy andInvestment universal insurance(VUL) and other insurance policies that require the policy to have a cash value, a death benefit of at least US$10,000, and non-guaranteed charges.
If the bill becomes law and is implemented in accordance with the specific content of the bill, insurance companies will need to:
- If the value or duration of the insurance policy is modified, the customer must be reminded at least 90 days in advance.
- If they lower the cash value yield rate, they need to provide written notice.
- At least once a year, provide policyholders with charging instructions.
Progress driven by personal "grass and grievances"?
The bill was drafted by Congressman Tom Cradick, who was the former Speaker of the Texas House of Representatives.In the March vote, the Texas House Insurance Committee passed a revised version with an 3-8 advantage.
Kladick has been concerned about life insurance standard legislation before.In 2017, he supported House Bill 3370.The bill restricts the increase in premiums of insurance companies. If the cost is not disclosed at the time of issuance, the maximum increase is 10%.
Universal insurance(UL) The insurance policy contract usually allows the insurance company to increase the corresponding cost based on the mortality rate or management expenses.The increase in the cost of insurance (Cost of Insurance) has prompted some policyholders to consider waiving their insurance directly.In the next few years, the growth may be dramatic, and it has also led to many lawsuits.
The Texas Life & Health Insurance Association (TALHI) pointed out in a review of the 2017 Texas Legislative Assembly that Cladick himself has been affected by the increase in premiums.
According to the review of the TALHI meeting, the former speaker Kladick applied for investment universal insurance (VUL), and he personally experienced a 100% increase in premiums.
Premium increaseIt also increases the cost of life insurance clearers.Some life insurance clearing companies sued life insurance companies for increasing premiums on universal insurance (UL) products, which hurt their profits.
The Life Insurance Clearing Company requested the National Insurance Legislative Council (NCOIL) to formulate a standard bill to increase life insurance premiums.
(American Life Insurance Guide)
