Exams / Texas Life Insurance License / Tex. Ins. Code §1131.103
Tex. Ins. Code §1131.103 — what it says, and how the exam tests it
This section is cited by 2 of our practice questions and is tested on 2 exams including the Texas Life Insurance License.
The text
Sec. 1131.103. GRACE PERIOD. (a) A group life insurance policy must provide that the policyholder or premium payor is entitled to a grace period of 31 days for the payment of any premium, other than the first, due under the policy. During the grace period, the death benefit coverage continues in force unless the policyholder or premium payor gives the insurer written notice of discontinuance before the date of discontinuance and in accordance with the policy. (b) The policy may provide that the policyholder or premium payor is liable to the insurer for payment of a pro rata premium for the time the policy was in force during a grace period. Added by Acts 2001, 77th Leg., ch. 1419, Sec. 2, eff. June 1, 2003.
Public record. Read the full, current section at the official source: tcss.legis.texas.gov
How it comes up on the exam
Practice questions written from this section — answers and explanations are in the drill.
- A group life insurance policy is in force during its grace period. The policyholder has NOT given written notice of discontinuance. What happens to death benefit coverage during this time?
drill Texas Statutes and Rules Pertinent to Life Insurance Only → - A group life insurance policyholder misses a premium payment. Under Texas law, what is the grace period for a group life insurance policy?
drill Texas Statutes and Rules Pertinent to Life Insurance Only →