# Tex. Insurance Code § 1114.005: FINANCED PURCHASE

> Texas · Statutes · In force

URL: https://www.frixlaw.com/law-library/statutes/STATE_TX_Cin_C1114_S1114.005

## Section

- **Citation:** Tex. Insurance Code § 1114.005
- **Heading:** FINANCED PURCHASE
- **Jurisdiction:** Texas
- **Kind:** Statutes
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** TX Code / Code in / Chapter 1114 / Section 1114.005

## Text

(a) If a withdrawal, surrender, or borrowing involving the policy values of an existing policy is used to pay premiums on a new policy that is owned by the same policyholder and is issued by the same insurer not earlier than four months before the effective date of the new policy or 13 months after the effective date of the new policy, it is deemed prima facie evidence of the policyholder's intent to finance the purchase of the new policy with existing policy values.

(b) Subsection (a) applies only to regulatory review of an individual transaction.

(c) The prima facie standard under Subsection (a) is not intended to increase or decrease the monitoring obligations contained in Section 1114.052(g).

## Nearby sections

- [Tex. Insurance Code § 1114.001 § 1114.001. PURPOSE.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Cin_C1114_S1114.001.md)
- [Tex. Insurance Code § 1114.002 § 1114.002. GENERAL DEFINITIONS.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Cin_C1114_S1114.002.md)
- [Tex. Insurance Code § 1114.003 § 1114.003. DEFINITION OF POLICY SUMMARY.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Cin_C1114_S1114.003.md)
- [Tex. Insurance Code § 1114.004 § 1114.004. APPLICABILITY; EXEMPTIONS.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Cin_C1114_S1114.004.md)
- [Tex. Insurance Code § 1114.005 § 1114.005. FINANCED PURCHASE.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Cin_C1114_S1114.005.md)
- [Tex. Insurance Code § 1114.006 § 1114.006. CONSUMER NOTICE DOCUMENTS.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Cin_C1114_S1114.006.md)
- [Tex. Insurance Code § 1114.007 § 1114.007. RULES.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Cin_C1114_S1114.007.md)
- [Tex. Insurance Code § 1114.051 § 1114.051. DUTIES OF AGENT; NOTICE.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Cin_C1114_S1114.051.md)
- [Tex. Insurance Code § 1114.052 § 1114.052. DUTIES OF INSURERS THAT USE AGENTS.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Cin_C1114_S1114.052.md)
- [Tex. Insurance Code § 1114.053 § 1114.053. DUTIES OF REPLACING INSURERS THAT USE AGENTS.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Cin_C1114_S1114.053.md)
- [Tex. Insurance Code § 1114.054 § 1114.054. DUTIES OF EXISTING INSURER.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Cin_C1114_S1114.054.md)
- [Tex. Insurance Code § 1114.055 § 1114.055. DUTIES OF INSURERS REGARDING DIRECT RESPONSE SOLICITATIONS.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Cin_C1114_S1114.055.md)
- [Tex. Insurance Code § 1114.056 § 1114.056. REGISTERED CONTRACTS.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Cin_C1114_S1114.056.md)
- [Tex. Insurance Code § 1114.057 § 1114.057. DISCLOSURE OF AVAILABILITY OF WAIVER OF SURRENDER CHARGES.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Cin_C1114_S1114.057.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_TX_Cin_C1114_S1114.005. Check the current official text before relying on it. Not legal advice.