Sec. 1101.005. GRACE PERIOD. (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.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 2, eff. June 1, 2003.
Structure Texas Statutes
Title 7 - Life Insurance and Annuities
Subtitle A - Life Insurance in General
Subchapter A. Required Policy Provisions
Section 1101.001. Applicability of Subchapter
Section 1101.002. Policy Provisions Required
Section 1101.003. Entire Contract
Section 1101.004. Premiums Payable in Advance
Section 1101.005. Grace Period
Section 1101.006. Incontestability
Section 1101.007. Statements of Insured
Section 1101.008. Adjustment of Amount Payable if Age of Insured Is Understated
Section 1101.009. Policy Loans
Section 1101.010. Nonforfeiture Benefits and Cash Surrender Values in General
Section 1101.011. Time for Settlement of Claim
Section 1101.012. Table of Installments of Proceeds
Section 1101.013. Statement of Maximum Amount Payable Under Family Group Life Insurance Policy