Life Insurance Requirements

Dallas life insurance lawyers know provisions that must be included in life insurance policies.

The Texas Insurance Code, Section 1101.003(a), states that an insurance policies must contain several prescribed provisions.  Pursuant to Section 1101.002(b), a single premium life insurance policy is not required to contain a provision under this sub-chapter to the extent that the provision is not applicable to a single premium insurance policy.  Otherwise, these required provisions generally include but are not limited to:

  1.  Pursuant to Section 1101.003, a life insurance policy must provide that the policy and the application for the policy constitute the entire contract between the parties.
  2.  Pursuant to Section 1101.004, 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.
  3.  Pursuant to Section 1101.005, 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.
  4.  Pursuant to Section 1101.006, 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.
  5.  Pursuant to Section 1101.007, all statements made by the insured will, in the absence of fraud, be deemed representations and not warranties.
  6.  Pursuant to Section 1101.008, if the insured’s age has been understated, the amount payable under the policy will be such as the premium paid would have purchased at the correct age.
  7.  Pursuant to Section 1101.008, if, in the event of default in premium payments, 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.
  8.  Pursuant to Section 1101.011, 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.
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