(a) Upon application for an indeterminate premium reduction policy or group certificate, a separate form containing a summary that adequately describes the contractual premium provisions must be signed by the applicant and submitted to the insurer in conjunction with the application. A portion of the summary must include the following information:
  (1) the fact that the premium might be changed in the policy;
  (2) the frequency of the possible changes;
  (3) the fact that the nonguaranteed premium (if used in solicitation or advertising) is not guaranteed but the full maximum could be charged; and
  (4) for participating policies, a statement that dividends are only payable if declared by the insurer. If it is not likely that dividends will be paid, a statement to that effect must be included.
(b) The summary required by these sections must be kept with a copy of the application after its receipt by the insurer and maintained in the insurer's files during the existence of the contract.

Source Note: The provisions of this §4.1004 adopted to be effective May 8, 1980, 5 TexReg 1579; amended to be effective July 28, 1982, 7 TexReg 2662; 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