Texas General Lines — Life, Accident, Health and HMOTexas Statutes and Rules Common to Life, Accident, Health and HMOEasy
An insurance company wishes to use a new policy form for its whole life insurance products in Texas. What action must the company take before issuing policies with this new form?
- APublish the new form in a statewide newspaper for 30 days before use.
- BFile the form with the National Association of Insurance Commissioners (NAIC) for approval.
- CSelf-certify the form's compliance with Texas law and begin using it immediately.
- DSubmit the form to the Texas Department of Insurance (TDI) for approval.
Show answer & explanationAnswer & explanation
Correct answer: D. Submit the form to the Texas Department of Insurance (TDI) for approval.
In Texas, all insurance policy forms, including those for life insurance, must be filed with and approved by the Texas Department of Insurance (TDI) before they can be used. This ensures compliance with state laws and consumer protection.
Why the other options are wrong
- A. Public notification via newspaper is not a requirement for policy form approval.
- B. The NAIC provides model laws, but individual state departments approve forms.
- C. Self-certification is not permitted for policy forms in Texas; TDI approval is required.
Policy Form Approval
The mandatory process of submitting insurance policy forms to the state's department of insurance for review and approval before they can be used.
- Required for all new and revised policy forms.
- Ensures compliance with state laws.
- Protects consumers from unfair or misleading provisions.
Memory trick: New policy forms must get the TDI's 'thumbs up' before going live.