If an insurer raises a non-guaranteed charge on a policy, it must send the policy owner a written notice with specified disclosures.
Sec. 1101.204. DISCLOSURE OF NON-GUARANTEED CHARGE INCREASE AFTER ISSUANCE OF POLICY. (a) If an insurer increases a non-guaranteed charge applied to a policy, the insurer must provide a written notice to the policy owner: (1) disclosing: (A) each non-guaranteed charge that has changed; (B) the new scale of non-guaranteed charges after the change; (C) the current scale of charges; and (D) the guaranteed maximum scale of charges; and (2) including a prominent display of any adverse change in the current scale of charges identifying: (A) the nature of the change; (B) that the change is adverse or the conditions under which the change would be adverse; and (C) the new age and year at which the policy will lapse if there are no changes to payments or coverage. (b) The notice under Subsection (a) must include the insurer's telephone number and the following statement placed prominently on the front of the notice: "YOU SHOULD KNOW: This increase may change the value of your policy and may change how long your policy will last unless you increase your premium payments or reduce your coverage, if permitted under your policy. Ask your insurance company for an illustration, at no cost, that shows the effect of this change on your policy and discuss with your agent or financial advisor other options that are available to you." (c) The notice required by Subsection (a) must be given not later than the 90th day before the date the change is applied. (d) The notice required by Subsection (a) does not constitute an illustration, as defined by rules adopted by the department relating to life insurance illustrations. Added by Acts 2019, 86th Leg., R.S., Ch. 1026 (H.B. 207), Sec. 1, eff. September 1, 2019.