Reserves for life insurance contracts providing for benefits described in §3.1201 of this title (relating to Scope) shall be computed on the assumption that the cash surrender value at every duration is the maximum guaranteed amount specified under the contract terms. No reduction whatsoever will be permitted for surrender charges that may be waived under provisions of the contract. The maximum guaranteed amount of the cash surrender value at any date after the date of issue of the contract shall include any amounts that are credited to the contract. For example, the maximum guaranteed amount of the cash surrender value would include any excess interest that has been credited to the contract.

Source Note:The provisions of this §3.1202 adopted to be effective April 27, 1984, 9 TexReg 2084; amended to be effective March 3, 1995, 20 TexReg 1146.