This section defines several insurance terms, including annuity contract, funding agreement, governmental body, group, group annuity contract, guaranteed investment contract, life insurer, and synthetic guaranteed investment contract.
Sec. 1154.003. DEFINITIONS. In this chapter: (1) "Annuity contract" means a contract, including a funding agreement, guaranteed investment contract, and synthetic guaranteed investment contract, issued by a life insurer, with or without a mortality or morbidity contingency, under which: (A) the owner deposits cash or assets in one or more installments with the life insurer; and (B) the owner or a beneficiary designated by the owner has a right to receive periodic payments for a specified future term. (2) "Funding agreement" means a type of annuity contract under which a life insurer: (A) accepts and accumulates funds, including noncash assets; and (B) makes one or more payments at a future date in amounts that are not based on mortality or morbidity contingencies. (3) "Governmental body" means a federal, state, municipal, local, or foreign court, tribunal, governmental department, commission, board, bureau, agency, authority, instrumentality, regulatory body, or quasi-regulatory body. (4) "Group" means a group to which a group life insurance policy may be issued under Subchapter B, Chapter 1131. (5) "Group annuity contract" means an annuity contract issued to a group and not an individual. (6) "Guaranteed investment contract" means a type of annuity contract issued by a life insurer: (A) that is a funding vehicle typically issued to a retirement plan; and (B) under which the life insurer accepts a deposit or series of deposits from the purchaser and guarantees to pay a specified interest rate of return on the funds deposited during a specified period. (7) "Life insurer" means an insurance company authorized to engage in the business of life insurance, including issuing annuity contracts, in this state. (8) "Synthetic guaranteed investment contract" means a group annuity contract or other agreement issued by a life insurer that, wholly or partly, establishes the life insurer's obligations by reference to a segregated portfolio of assets that the life insurer does not own. Added by Acts 2015, 84th Leg., R.S., Ch. 1187 (S.B. 1196), Sec. 2, eff. September 1, 2015.