Sec. 1151.057. GRACE PERIOD. (a) An industrial life insurance policy must provide that the insured is entitled to a grace period stated in the policy within which any premium after the first premium may be paid. The grace period must be at least a four-week period.
(b) During the grace period the policy continues in effect, but if an event under which the insurer may be liable under the policy occurs during the grace period and before the overdue premiums are paid, the amount of the overdue premiums may be deducted in a settlement made under the policy.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 2, eff. June 1, 2003.
Structure Texas Statutes
Title 7 - Life Insurance and Annuities
Subtitle C - Specialized Coverages
Chapter 1151 - Industrial Life Insurance
Subchapter B. Required Policy Provisions
Section 1151.051. Policy Title
Section 1151.052. Entire Contract
Section 1151.053. Agent Unauthorized to Waive or Change Terms
Section 1151.054. Statement Made by or on Behalf of Insured
Section 1151.055. Incontestability of Policy
Section 1151.056. Adjustment of Amount Payable if Age of Insured Is Misstated
Section 1151.057. Grace Period
Section 1151.058. Nonforfeiture Benefits and Cash Surrender Values in General
Section 1151.060. Claim Based on Death of Insured
Section 1151.061. Reinstatement of Policy
Section 1151.062. Exception for Policies Issued or Granted Under Certain Nonforfeiture Provisions