Texas Statutes and Rules Pertinent to Life Insurance Only
How does accelerating a Texas group life benefit affect the employee's conversion right if employment later ends?
Answer and explanation
Answer: C. Acceleration permanently reduces the group death benefit. Conversion, which lets a departing employee buy individual coverage, operates on the amount of group coverage actually remaining.Source: Texas Insurance Code — Tex. Ins. Code ch. 1131, conversion privilege and reduced group amounts
More texas statutes and rules pertinent to life insurance only questions
- A Texas life policy sets a period within which suit must be brought on a claim. What does the Insurance Code require of that period?
- A Texas ordinary whole life policy reaches its stated maturity date and the insured is still alive. What does the insurer do?
- A Texas owner pays an annual premium and the insured dies four months into that policy year. What happens to the unearned premium?
- A Texas owner's policy loan plus accrued interest grows until it equals the policy's cash value. What happens?
- A Texas policy states that no suit may be brought more than six months after a claim is denied. How is that clause treated?
- A Texas whole life policy has accumulated cash value and the owner requests a policy loan. What is the insurer's obligation?
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