(a) Automatic premium loans do not constitute a stipulated form of insurance, and the automatic premium loan provision must not be classified as a nonforfeiture value. Provisions for automatic premium loans must be revocable at the option of the owner of the policy.
(b) If the automatic premium loan provision remains operative after loan values are insufficient to pay the next premium or installment thereof, the policy must define the premium rate to be charged in such a manner as to make possible the determination of the expiry date of the coverage.

Source Note: The provisions of this §4.609 adopted to be effective January 1, 1976; transferred effective September 1, 2023, as published in the July 28, 2023, issue of the Texas Register, 48 TexReg 4127