Texas Administrative Code

Texas Administrative Code

TITLE 34	PUBLIC FINANCE
PART 4	EMPLOYEES RETIREMENT SYSTEM OF TEXAS
CHAPTER 87	DEFERRED COMPENSATION
RULE §87.9	Investment Products

(F) A participant may exercise the participant's right to continue life insurance coverage only if the participant mails to the insurance company written notice of intention to continue the coverage. The written notice must be postmarked no later than the 60th day after the effective date of the withdrawal of the life insurance product from the plan. However, an insurance company may increase the 60-day time limit for a participant or for all participants.

(G) When a participant elects to continue life insurance coverage, the insurance company with which the coverage is continuing may not:

(i) refuse to continue the life insurance;

(ii) require a postponement or an interruption in coverage for any length of time;

(iii) require the participant to provide evidence of insurability;

(iv) require the participant to apply for coverage;

(v) require the participant to select a different life insurance product from the withdrawn life insurance product;

(vi) discriminate in any manner against the participant because of the company's withdrawal of the product;

(vii) treat the participant differently than the company would treat a non-participant with the same life insurance coverage; or

(viii) increase the premiums charged to the participant solely because the company withdrew a life insurance product from the plan or because the participant elected to continue coverage.

(H) A prior plan vendor must inform the participant in the written notice required by paragraph (1) of this subsection that the participant has the rights specified in this paragraph.

(I) If a prior plan vendor does not comply with subparagraph (H) of this paragraph, then a participant may exercise the participant's right to continue insurance up to the 120th day after the prior plan vendor actually mails written notice to the participant containing a full explanation of the participant's rights.

Source Note: The provisions of this §87.9 adopted to be effective March 28, 1991, 16 TexReg 1560; amended to be effective January 10, 1992, 16 TexReg 7743; amended to be effective November 23, 1992, 17 TexReg 7911; amended to be effective January 5, 1996, 20 TexReg 11022; amended to be effective November 11, 1996, 21 TexReg 10766; amended to be effective January 10, 1999, 24 TexReg 165; amended to be effective July 10, 2000, 25 TexReg 6558; amended to be effective January 5, 2003, 27 TexReg 12370; amended to be effective September 11, 2003, 28 TexReg 7785; amended to be effective September 30, 2004, 29 TexReg 9204; amended to be effective May 29, 2005, 30 TexReg 3023; amended to be effectiveDecember 31, 2007, 32 TexReg 10054; amended to be effective June 9, 2015, 40 TexReg 3575