Life Insurance Policies In Texas

What do people in Dallas, Fort Worth, Arlington, Grand Prairie, Azle, Irving, Burleson, Mansfield, Duncanville, and other cities in Texas know about life insurance? Answer: not much, except what it costs each time they make a payment.
Life insurance in Texas is regulated by the Texas Department of Insurance. Laws governing life insurance can be found in the Texas Insurance Code. Insurance Law Attorneys can answer a lot of questions whenever someone thinks they are not being treated properly by their agent or the insurance company.
Life insurance policies, by law, must contain several prescribed provisions. This is stated in Section 1101.002(a) of the Insurance Code. The exception to this statute is a single premium life insurance policy. This is stated in Section 1101.002(b), but these single premium policies are not seen very often and the vast majority of people do not have these types of policies.
Otherwise, the required provisions in a life insurance policy generally include (but are not limited to):
1) a life insurance policy must provide that the policy or the policy and the application for the policy constitute the entire contract between the parties. This is found in Section 1101.003;
2) all premiums are payable in advance either at the home office of the company or to an agent of the company upon delivery of a receipt signed by one or more of the officers who are designated in the policy. This is found in Section 1101.004;
3) there is a grace period of at least one month, for the payment of every premium after the first, which may be subject to an interest charge if paid during the grace period, during which the insurance may continue in force. This is found in Section 1101.005;
4) the policy, or policy and application, will constitute the entire contract between the parties and will be incontestable after it has been in force during the lifetime of the insured for two years from its date, except for nonpayment of premiums (it may also contain an exception for violation of conditions of policy relating to naval and military service in time of war). This is found in Section 1101.006;
5) all statements made by the insured will, in the absence of fraud, be deemed representations and not warranties. This is found in Section 1101.007;
6) if the insured’s age had been understated, the amount payable under the policy will be such as the premium paid would have purchased at the correct age. This is found in Section 1101.008;
7) if, in the event of default in premium payment, the value of the policy will be applied to the purchase of other insurance, and if such insurance is in force and the original policy has not been surrendered to the company and canceled, the policy may be reinstated within three years from such default upon evidence of insurability satisfactory to the company and payments of arrears of premiums with interest. This is found in Section 1101.009;
8. when a policy becomes a claim by the insured’s death, settlement will be made upon receipt of or not later than two months after due proof of death and the claimant’s right to the proceeds. This is found in Section 1101.011; and 9. include a table showing the amounts of installments in which the policy may be payable. This is found in Section 1101.012.
These statutes will be backed up by the Texas Supreme Court if necessary.

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