State RegulationsTX specificDifficulty 2/5
A Texas employee covered under a group life policy terminates employment, ending eligibility under the group. Under TIC 1141.354, what right does the insured have?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under TIC 1141.354, an insured whose group life coverage ends with eligibility has the right to convert to an individual policy without submitting evidence of insurability. The right matters most for a person who became uninsurable while in the group, because it preserves continuous coverage. It is the insured's election that controls, not the insurer's underwriting department or the employer's willingness to keep paying.
Why the other options are wrong
- A) TIC 1141.354 grants the insured a conversion right; it does not require the employer to continue paying for coverage after eligibility ends.
- C) The conversion right is exercised without evidence of insurability, so the insurer's consent after medical underwriting is not required.
- D) Group coverage generally ends with eligibility; TIC 1141.354 gives a conversion right to an individual policy rather than indefinite group coverage.
Memory hook
Group coverage ends, convert without evidence of insurability.