Texas Insurance Code

§ 1101.005 — GRACE PERIOD

IN § 1101.005Title 7. LIFE INSURANCE AND ANNUITIES · Part A. LIFE INSURANCE IN GENERAL · Ch. 1101. LIFE INSURANCE · Art. A. REQUIRED POLICY PROVISIONS

Statute text

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(a)Except as provided by Subsection (b), a life insurance policy:

(1)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; and

(2)may:

(A)provide for an interest charge on a premium paid during a grace period; or

(B)provide that if an insured dies during a grace period the overdue premium will be deducted from any settlement made under the policy.

(b)The commissioner by rule may require a life insurance policy issued under Section 884.402(3) to contain a grace period that is longer than the grace period required by this section.

Legislative history

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 2, eff. June 1, 2003.