Texas Statutes and Rules Common to Life and Health Insurance
A consumer buys life insurance from an unauthorised insurer that later refuses to pay a valid claim. What protection does Texas law give?
Answer and explanation
Answer: D. Texas courts have jurisdiction over unauthorised insurers doing business in the state. But guaranty association coverage extends only to policies of licensed member insurers, so the consumer loses that safety net.Source: Texas Insurance Code — Tex. Ins. Code ch. 463, guaranty association coverage limited to member insurers
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