State RegulationsTX specificDifficulty 1/5
A Texas individual life insurance policyowner fails to pay the renewal premium when it comes due. What grace period must the Texas policy provide for payment of that premium?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under TIC 1101.005, a Texas life insurance policy must provide a grace period of at least one month for the payment of any premium after the first; note the drafting split — TIC 1101.005 requires at least one month, and 31 days is the standard Texas figure used on the exam and in practice. The practical consequence is that coverage continues throughout the grace period and a lapse cannot take effect until the period has fully expired without payment.
Why the other options are wrong
- B) 10 days is the standard free-look period under the Texas free-look requirement, not the premium grace period.
- C) 15 business days is the period in which an insurer must acknowledge a claim under the prompt-payment rules, not a grace period.
- D) 60 days (2 months) is the death-claim settlement deadline under TIC 1101.011, not a grace period.
Memory hook
One month in the Code, 31 days in the classroom.