State RegulationsTX specificDifficulty 2/5
Under TIC 1131.151, which statement about dependent coverage under a Texas group life insurance policy is correct?
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Under TIC 1131.151, dependent coverage under a Texas group life policy is written as part of the group contract and is tied to the person's status as a dependent: when that status ends, for example when a child no longer meets the definition of a dependent in the policy, the coverage ends. Because dependent coverage is incidental to the group, it is not a separate permanent contract the dependent can keep regardless of status.
Why the other options are wrong
- A) Dependent coverage is incidental to the group and requires the group member to be covered; a dependent cannot be insured independently of the member.
- B) Coverage does not automatically convert at the employee's death; a conversion right, where it exists, must be exercised under the conversion provision.
- C) Dependent coverage is not permanent; it continues only while the person meets the policy's definition of a dependent.
Memory hook
Dependent coverage rides on dependent status and ends when that status ends.