Texas Statutes and Rules Pertinent to Life Insurance Only
What is the primary purpose of credit life insurance?
Answer and explanation
Answer: A. Credit life insurance protects the creditor by paying off the debtor's loan balance if the debtor dies before the loan is fully repaid.Source: Texas Insurance Code Chapter 1151 — § 1151.001, Purpose of Credit Life
More texas statutes and rules pertinent to life insurance only questions
- A Texas group life plan includes an accelerated benefit. Who receives the accelerated payment?
- A Texas group life plan offers dependent coverage on an employee's spouse and children. Who is ordinarily the beneficiary of the dependent's benefit?
- A Texas individual life policy has been in force for more than two years during the insured’s lifetime, and its incontestability period has expired. May the insurer rely on a contractual fraud exception to reopen a contest about the original application?
- A Texas insured dies with an outstanding policy loan and accrued loan interest. How is the death benefit settled?
- A Texas insured innocently gives a slightly inaccurate date for a past medical consultation that would not have changed underwriting. May the insurer void the policy?
- A Texas life policy contains a provision that is less favourable to the insured than the Insurance Code requires. What is the effect?
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