Sec. 1105.003. EXEMPTIONS. (a) This chapter does not apply to: (1) reinsurance; (2) group insurance; (3) pure endowment; (4) an annuity or reversionary annuity contract; (5) a term policy of uniform amount that: (A) does not provide guaranteed nonforfeiture or endowment benefits or renewal of the policy; (B) has a term of 20 years or less that expires before the insured reaches 71 years of age; and (C) has uniform premiums that are payable during the entire term of the policy; (6) a term policy of decreasing amount: (A) that does not provide guaranteed nonforfeiture or endowment benefits; and (B) on which each adjusted premium, computed as specified by Subchapter B or D, is less than the adjusted premium computed in that manner for a term policy of uniform amount, or a renewal of a term policy of uniform amount, that: (i) does not provide guaranteed nonforfeiture or endowment benefits; (ii) is issued at the same age and for the same initial amount of insurance; (iii) has a term of 20 years or less and expires before the insured reaches 71 years of age; and (iv) has uniform premiums that are payable during the entire term of the policy; (7) a policy: (A) that does not provide guaranteed nonforfeiture or endowment benefits; and (B) for which no cash surrender value, if any, or present value of any paid-up nonforfeiture benefit, at the beginning of any policy year, computed as specified by Section 1105.007 , 1105.008 , 1105.009 , Subchapter B, or Subchapter D, exceeds 2-1/2 percent of the amount of insurance at the beginning of the same policy year; (8) a policy delivered outside this state through an agent or other representative of the company that issued the policy; or (9) a policy that: (A) does not provide for cash values or nonforfeiture values; and (B) meets the requirements of Section 884.403 (b). (b) For purposes of determining the applicability of this chapter, the age at expiry of a joint term life insurance policy is the age at expiry of the oldest insured life on that date.
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