1. (a) This subsection applies only to activities, investment products, vendors' participation in the plan, and documents that the plan administrator approved before May 7, 1990. A qualified vendor must comply with the substantive requirements of the sections in this chapter by July 1, 1990, to the extent that compliance with the requirements is a precondition for obtaining the plan administrator's approval of activities, investment products, vendors' participation in the plan, or documents. Compliance is required notwithstanding the plan administrator's approval of the activities, investment products, vendors' participation in the plan, or documents before the May 7, 1990. If a qualified vendor does not comply by July 1, 1990, the plan administrator shall take appropriate disciplinary action.

2. (b) A qualified vendor is deemed to consent to each provision and requirement in the sections of this chapter unless the plan administrator receives written notice from the vendor by no later than May 18, 1990, that the vendor is terminating its participation in the plan effective no later than July 17, 1990. If the plan administrator timely receives the notice from a vendor:

   1. (1) the prohibition against the charging of fees for voluntary termination from the plan in §87.7(g) of this title (relating to Vendor Participation) does not apply to the vendor's qualified investment products; and
   2. (2) §87.7(g) of this title (relating to Vendor Participation) does not provide participants with the right to continue their life insurance coverage, although the terms of a particular life insurance product or state or federal law may provide the participants with the right to continue their insurance coverage.

Source Note:The provisions of this §87.25 adopted to be effective March 28, 1991, 16 TexReg 1560.