(a) No indeterminate premium reduction policy may be approved for use in Texas unless the insurer files with the Texas Department of Insurance, in conjunction with such indeterminate premium reduction policy, a statement:
  (1) that, to the best of the insurer's knowledge and belief, the policy submitted is in compliance with this subchapter;
  (2) that advertising and solicitation will be in compliance with this subchapter;
  (3) that any premium redetermination will not reflect a distribution of company surplus nor a return of previously collected premiums; and
  (4) that any nonguaranteed premium rates used to market the policy are lower than rates that the insurer is willing to guarantee in a fixed premium policy with the same or similar benefits for insureds of essentially the same class of risk.
(b) A nonguaranteed premium means any charge for insurance, including any percentage deviation from a maximum charge, that an insurer or insurance agent mentions or illustrates as a possible charge for coverage other than the maximum guaranteed premium specified in the policy.

Source Note: The provisions of this §4.1002 adopted to be effective May 8, 1980, 5 TexReg 1579; amended to be effective May 11, 2022, 47 TexReg 2758; transferred effective September 1, 2023, as published in the July 28, 2023, issue of the Texas Register, 48 TexReg 4127; amended to be effective January 24, 2024, 49 TexReg 250