1. (a) Notwithstanding Section 1105.007 or 1105.008, additional benefits described by Subsection (b), and premiums for those benefits, may not be included in computing a cash surrender value or nonforfeiture benefits required by this chapter. Additional benefits described by Subsection (b) are not required to be included in any paid-up nonforfeiture benefits.

2. (b) This section applies to additional benefits payable:

   1. (1) in the event of death or dismemberment by accident;
   2. (2) in the event of total and permanent disability;
   3. (3) as reversionary annuity or deferred reversionary annuity benefits;
   4. (4) as term insurance benefits provided by a rider or supplemental policy provision to which, if issued as a separate policy, this chapter would not apply;

   5. (5) as term insurance on the life of a child that:

      1. (A) is provided in a policy on the life of a parent of the child;
      2. (B) expires before the child reaches 26 years of age;
      3. (C) is uniform in amount after the child reaches one year of age; and
      4. (D) has not become paid up by reason of the death of a parent of the child; or
   6. (6) as other policy benefits additional to life insurance and endowment benefits.

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 2, eff. June 1, 2003.