There is no prohibition against a provision that permits the assignment of the policy benefits or proceeds. However, policies that make provision for dividends, coupon accumulations, or other guaranteed returns, and that also contain provision for the assignment of these funds to a third party for the purpose of establishing an investment for the policyholder are prohibited.

Source Note: The provisions of this §4.623 adopted to be effective January 1, 1976; amended to be effective September 20, 1982, 7 TexReg 3244; 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