Texas Statutes and Rules Pertinent to Life Insurance Only
A Texas life policy contains a provision that is less favourable to the insured than the Insurance Code requires. What is the effect?
Answer and explanation
Answer: B. Statutory required provisions set a floor. An insurer may offer terms more favourable than the statute, but a provision falling below the statutory standard does not bind the insured.Source: Texas Insurance Code — Tex. Ins. Code ch. 1101, effect of provisions inconsistent with the Code
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