State RegulationsTX specificDifficulty 1/5
Under the Texas policy loan statute, for how long may a Texas insurer defer payment of a policy loan the owner has applied for?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Under TIC 1101.009, the insurer may defer making a policy loan for up to 6 months from the date the owner applies for it; the deferral right is a limited safety valve, not an open-ended refusal, and the 6 months runs from the application date rather than from approval. The practical consequence is that an owner who needs money on a fixed schedule should apply early and confirm the insurer's current deferral practice, because the statute gives the insurer the full period to pay.
Why the other options are wrong
- A) 31 days is the premium grace period under TIC 1101.005; the loan deferral right is measured in 6 months.
- B) The right to defer is capped at 6 months; the insurer cannot refuse the loan indefinitely.
- C) The 6-month period runs from the date of the loan application, not from the date the insurer approves it.
Memory hook
Six months from the ask, not from the yes.