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.
Structure Texas Statutes
Title 7 - Life Insurance and Annuities
Subtitle B - Group Life Insurance
Chapter 1131 - Group Life Insurance and Wholesale, Franchise, or Employee Life Insurance
Subchapter C. Group Life Insurance: Required Provisions
Section 1131.101. Required Provisions
Section 1131.102. Nonforfeiture
Section 1131.103. Grace Period
Section 1131.104. Incontestability of Policy
Section 1131.105. Application for Policy; Statements of Insured
Section 1131.106. Evidence of Insurability
Section 1131.107. Adjustment of Premiums or Benefits if Age of Insured Is Misstated
Section 1131.108. Insurance Certificate
Section 1131.109. Person to Whom Benefits Are Payable
Section 1131.110. Right to Individual Policy on Termination of Employment or Membership
Section 1131.112. Payment of Benefits on Death of Insured Before Individual Policy Becomes Effective