Life insurance required and prohibited policy provisions

What this document is

Tex. Ins. Code ch. 1101: Life insurance required and prohibited policy provisions is a state statute published by Texas Legislature (statutes.capitol.texas.gov). It is one of the Texas documents that insurance license exam questions are written from, including texas life & health practice questions. This page summarizes it and points to the official version, which is the text to rely on.

Sections cited in practice questions

Each practice answer shows the exact passage it comes from. These are sections of this document that questions cite, with a short excerpt from the source text.

• Tex. Ins. Code § 1101.005 (Grace Period)

  “must contain a provision for a grace period of at least one month for the payment of each premium after the first payment during which the policy remains in force;”

• Tex. Ins. Code § 1101.006 (Incontestability)

  “a life insurance policy must provide that a policy in force for two years from its date of issue during the lifetime of the insured is incontestable, except for nonpayment of premiums.”

• Tex. Ins. Code § 1101.053 (Certain Limitations Periods)

  “A life insurance policy may not include a provision that limits the time during which an action under the policy may be commenced to a period of less than two years after the date the cause of action accrues.”

• Tex. Ins. Code § 1101.008 (Adjustment of Amount Payable if Age Understated)

  “if the age of an insured has been understated, the amount payable under the policy is the amount that the premium paid would have purchased if the insured's age had been stated correctly.”

• Tex. Ins. Code § 1101.054 (Retroactive Issuance or Effect)

  “a life insurance policy may not contain a provision under which the policy is issued or takes effect on a date more than six months before the date of the original policy application if the provision causes the insured to rate at an age that is younger than the age of the insured on the date of the application.”

• Tex. Ins. Code § 1101.055 (Settlement on Maturity Less Than Face Value)

  “A life insurance policy may provide for a settlement that will be less than the amount required under Subsection (a) if the death of the insured is: (1) by the insured's own hand regardless of whether the insured is sane or insane; (2) caused by following a hazardous occupation that is stated in...”

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