Texas Life Insurance (TX)
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In the state of Texas, laws are in effect to provide protection for both consumers and insurers.
TExas Life Insurance Laws (TX)
Texas ’ insurance industry is regulated by Title 17 of the Texas Insurance Code. Both claims procedures and policy requirements are outlined here in order to protect insurance consumers of the state.
A 30-day grace period is required in all life insurance policies in Texas. Within this one month window, policyholders are allowed to catch up on a late payment without worry of their coverage being terminated by the insurer. As long as the required payment is made during this time period, there shall be no lapse in coverage.
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When a life insurance claim is filed in Texas, insurers have 15 days from receiving the proper proof of death to begin the settlement process. In an additional 15 days, the insurer is obligated to notify the policyholder (or beneficiary) of the claim’s status. Within 60 total days, the settlement should be completed. Any additional time needed by the insurer after the two-month period shall result in interest accruing on the policy proceeds.
Life Insurance Regulations Protecting Texas Insurers (TX)
Protections are also granted to life insurance companies, as well. Any fraudulent findings or misstatements found on a policy or application for coverage within the first two years of a policy’s life can result in policy termination. No claims need to be honored after such findings.
Any misstatements regarding age will simply result in a recalculation of the death benefit, reflecting the actual age of the insured.
When suicide is the cause of death during the first two years of a life insurance policy, Texas insurers do not need to honor the claim.
Additional Texas Life Insurance Regulations (TX)
If your life insurance company were to become bankrupt and, therefore, unable to fund your policy, the Texas Life, Accident, Health & Hospital Service Insurance Guaranty Association would help to compensate you. There are, however, restrictions for compensation limits:
- Loss of death benefits shall not exceed $300,000.
- Loss of cash surrender shall not exceed $100,000.
In order to qualify for this protection, your insurer must be licensed in the state of Texas and your policy premiums must be current.
Texans, request a free life insurance quote today!
Life-Insurance-Info.us is not a life insurance broker or carrier, and cannot issue life insurance policies. This site provides free information on insurance providers and coverage options. We are not associated with the companies profiled on Life-Insurance-Info.us and we make no representation, express or implied, that you will receive a quote from a specific company profiled herein. Products and policies may not be available in all states, and product and policy information is subject to change without notice. Please contact the insurance company directly to answer your policy inquiries.
Last Updated: June 16, 2009
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