Policy Riders, Provisions, Options, and Exclusions
A scheduled-premium life policy's grace period expires without payment, and no nonforfeiture or automatic-loan protection continues coverage. What follows?
Answer and explanation
Answer: C. If the overdue premium is not paid within the grace period and no other provision preserves coverage, the policy lapses. The owner may have a contractual reinstatement right, but coverage does not continue indefinitely.Source: Texas Department of Insurance — Life Insurance Guide — Policy lapses > What if my policy lapses?
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