State RegulationsTX specificDifficulty 3/5
An insured under a Texas individual life policy dies, and the insurer receives proof of death and proof of the claimant's right to the proceeds. Under TIC 1101.011, by when must the insurer settle the claim?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under TIC 1101.011, a Texas insurer must settle a death claim under an individual life policy not later than two months after it receives both the proof of death and proof of the claimant's right to the proceeds; the clock starts only when the insurer has both items, not on the date of death. The separate prompt-payment duties of TIC Chapter 542, including acknowledging a claim within fifteen business days, do not change this settlement deadline.
Why the other options are wrong
- A) The two months runs from the insurer's receipt of the required proofs, not from the date of death.
- B) Thirty-one days is the grace period required by TIC 1101.005; TIC 1101.011 measures the settlement period from receipt of the proofs.
- D) Fifteen business days is the prompt-payment acknowledgement standard under TIC Chapter 542, not the settlement deadline under TIC 1101.011.
Memory hook
The settlement clock starts only when the insurer holds both proofs: two months from there.