(a) This subsection applies only to activities, investment products, prior plan vendors' participation in the plan, and documents that the plan administrator approved before May 7, 1990. A prior plan vendor must comply with the substantive requirements of the sections in this chapter by July 1, 1990, to the extent that compliance with the requirements is a precondition for obtaining the plan administrator's approval of activities, investment products, prior plan vendors' participation in the plan, or documents. Compliance is required notwithstanding the plan administrator's approval of the activities, investment products, prior plan vendors' participation in the plan, or documents before the May 7, 1990. If a prior plan vendor does not comply by July 1, 1990, the plan administrator shall take appropriate disciplinary action.
(b) A prior plan vendor is deemed to consent to each provision and requirement in the sections of this chapter unless the plan administrator receives written notice from the prior plan vendor by no later than May 18, 1990, that the prior plan vendor is terminating its participation in the plan effective no later than July 17, 1990. If the plan administrator timely receives the notice from a prior plan vendor:
  (1) the prohibition against the charging of fees for voluntary termination from the plan in §87.7(f) of this title (relating to prior plan vendor participation) does not apply to the prior plan vendor's qualified investment products; and
  (2) §87.7(f) of this title (relating to prior plan vendor participation) does not provide participants with the right to continue their life insurance coverage, although the terms of a particular life insurance product or state or federal law may provide the participants with the right to continue their insurance coverage.

Source Note: The provisions of this §87.25 adopted to be effective March 28, 1991, 16 TexReg 1560; amended to be effective September 30, 2004, 29 TexReg 9204