AI-assisted research summary: This section defines several insurance terms, including annuity contract, Death Master File, Death Master File match, life insurance policy, recordkeeping services, and retained asset account.
Sec. 1109.010. DEFINITIONS. In this subchapter: (1) "Annuity contract" means an annuity contract issued in this state. The term does not include an annuity used to fund an employment-based retirement plan or program for which the insurer: (A) does not perform the recordkeeping services; or (B) is not committed by the terms of the annuity contract to pay death benefits to the beneficiaries of specific plan participants. (2) "Death Master File" means: (A) the United States Social Security Administration's Death Master File; or (B) any other database or service that is at least as comprehensive as the United States Social Security Administration's Death Master File for determining whether a person is dead. (3) "Death Master File match" means a match of the social security number or the name and date of birth of an insured or retained asset account holder resulting from a search of the Death Master File. (4) "Life insurance policy" means a policy or certificate of life insurance issued in this state that provides a death benefit. The term does not include: (A) a policy or certificate of life insurance that provides a death benefit under an employee benefit plan that is: (i) subject to the Employee Retirement Income Security Act of 1974 (29 U.S.C. Section 1001 et seq.); or (ii) under any federal employee benefit program; (B) a policy or certificate of life insurance that is used to fund a pre-need funeral contract or prearrangement; (C) a policy or certificate of credit life or accidental death insurance; or (D) a policy issued to a group master policyholder for which the insurer does not provide recordkeeping services. (5) "Recordkeeping services" means services provided by an insurer, under an agreement with a group policy or contract holder, to obtain, maintain, and administer in the insurer's or the insurer's agents' systems the following information about each individual insured under the group policy or contract or a line of coverage under that policy or contract: (A) the social security number or name and date of birth of the insured; (B) beneficiary designation information; (C) coverage eligibility; (D) benefit amount; and (E) premium payment status. (6) "Retained asset account" means a mechanism by which the proceeds payable under a life insurance policy or annuity contract are settled by the insurer or an entity acting on behalf of the insurer by depositing the proceeds into an account with check or draft writing privileges, where those proceeds are retained by the insurer or the insurer's agent, under a supplementary contract not involving annuity contract benefits other than death benefits. Added by Acts 2017, 85th Leg., R.S., Ch. 42 (S.B. 561), Sec. 1, eff. September 1, 2017.