Texas Statutes and Rules Pertinent to Life Insurance Only
A Texas ordinary whole life policy reaches its stated maturity date and the insured is still alive. What does the insurer do?
Answer and explanation
Answer: B. At maturity the cash value has grown to equal the face amount. The endowment matures in favour of the living policyowner rather than the beneficiary, and the contract is discharged.Source: Texas Insurance Code — Tex. Ins. Code ch. 1101, settlement of policy proceeds at maturity
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