Sec. 1131.109. PERSON TO WHOM BENEFITS ARE PAYABLE. (a) A group life insurance policy must provide that any amount due because of an insured's death must be paid to the beneficiary designated by the insured or the beneficiary's assignee, subject to:
(1) the provisions of the policy, if the designated beneficiary as to all or any part of the amount is not living at the time the insured dies; and
(2) any right reserved by the insurer in the policy and stated in the certificate to pay at the insurer's option a portion of the amount not to exceed $250 to any person the insurer determines is equitably entitled to the portion because of having incurred funeral or other expenses incident to the last illness or death of the insured.
(b) This section does not apply to:
(1) a policy issued to a creditor to insure the creditor's debtors; or
(2) a policy to which Section 1131.703 applies.
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