Texas Statutes and Rules Common to Life and Health Insurance
Why is a Texas fraternal benefit society's certificate sometimes subject to an open contract provision that an ordinary policy is not?
Answer and explanation
Answer: D. Fraternal certificates commonly incorporate the society's governing documents, so amendments to those documents can affect the contract. That open contract feature differs from the entire contract clause in a commercial policy.Source: Texas Insurance Code — Tex. Ins. Code ch. 885, contents of benefit certificates and governing documents
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