This law allows an insurance company to terminate an annuity contract by paying the present value of the paid-up benefit if no payments are made for two years. It affects annuity holders and insurers, providing a clear exit strategy for companies under specific conditions.
Insurers can terminate contracts after two years of no payments.
Termination requires a cash payment of the present value.
This provision is optional and not mandatory for all contracts.
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In simple terms: Learn about Texas's OPTIONAL TERMINATION PROVISION. (a) law, including definitions, penalties, and legal implications.. This means people must follow this rule, and breaking it can lead to criminal penalties.
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