- (a) Except as provided by Subsection (b), a local mutual aid association may provide only for the payment of death benefits. An association may not provide for old age benefits or benefits for accidental injury or sickness.
- (b) A local mutual aid association organized before March 21, 1929, that provides for the payment of death, old age, and accident benefits may continue to provide those benefits.
- (c) The policy issued by the association must clearly state the benefits provided.
(d) A local mutual aid association may not issue a policy providing for:
- (1) a level premium;
- (2) guaranteed benefits; or
- (3) surrender of loan values.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.