Section 21.4804 - Reasonable Relation to Policy, Contract or Certificate(a) In accordance with the Insurance Code § 1701.061(a), any noninsurance benefit provided or disclosed as part of an insurance policy, contract or certificate of insurance must be reasonably related to the type of insurance policy, contract or certificate being issued.(b) For purposes of this subchapter, the standard of "reasonable relation" takes into account the nature, character, purpose and scope of the insurance policy, contract or certificate with which the noninsurance benefit or feature is associated and to be offered. An example representing the existence of "reasonable relation" is a noninsurance benefit which, in form and application, is specifically related to the purpose and function of the underlying insurance policy, contract or certificate. Determination of "reasonable relation" will include examination of the degree to which the noninsurance benefit is related in its nature, character and purpose to that of the insurance policy, contract or certificate, including, as appropriate, the type and amount of benefit provided.28 Tex. Admin. Code § 21.4804
The provisions of this §21.4804 adopted to be effective January 4, 2010, 35 TexReg 99