Under Texas group life law, which of the following does NOT give rise to the conversion privilege?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under TIC 1141.354, the conversion privilege is triggered by the insured losing coverage or eligibility: termination of employment or membership in the eligible class, or termination or amendment of the master policy that ends the coverage in question. A person who merely elects to drop coverage while remaining eligible has not lost eligibility, so no conversion right arises and a later individual application would be underwritten normally. Practically, an agent should tell a Texas employee who is thinking of dropping group coverage that voluntarily quitting the plan does not create a guaranteed-issue individual policy.
Why the other options are wrong
- B) does create the right: loss of eligibility through termination of employment is the classic conversion trigger under TIC 1141.354.
- C) does create the right: an amendment that ends coverage for the insured's class is treated the same as termination of that coverage.
- D) does create the right: termination of the master group policy ends the coverage and the individual conversion privilege applies.
Memory hook
Conversion follows the loss of the group, not the choice to leave it.