State RegulationsTX specificDifficulty 1/5
Under Texas group life eligibility law, which characteristic must a group possess in order to be an eligible group for group life insurance?
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under TIC 1131.053, eligible groups for Texas group life insurance are defined by a real relationship — employment, labor union membership, association membership and similar — and the group must exist for a purpose other than obtaining insurance, which blocks ad hoc groups assembled purely to buy coverage. The practical consequence is that the sponsor, not the insurer, must be able to show the group's genuine purpose, and coverage is issued under a master policy to the sponsor while each insured person receives a certificate rather than a policy.
Why the other options are wrong
- A) Open enrollment with no underlying common bond defeats the eligible-group requirement.
- C) A group created solely to buy insurance is the classic ineligible group.
- D) Contributory plans in which members share the cost are permissible; full member payment is not required.
Memory hook
A real group first, insurance second.