State RegulationsTX specificDifficulty 2/5
Under TIC 1131.053, which of the following is a condition a group must meet before group life insurance may be issued to it in Texas?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under TIC 1131.053, group life insurance may be issued to a group only where the group was formed for a purpose other than that of obtaining insurance, such as an employer-employee relationship, a labor union, or an association with a genuine non-insurance purpose. Because the group itself is the underwriting unit, group underwriting looks at the characteristics of the group as a whole rather than at each member, which is why individual evidence of insurability is generally not required of eligible members.
Why the other options are wrong
- A) Group life underwriting is based on the group rather than the individual, so evidence of individual insurability is generally not required of eligible members.
- C) TDI does not license a group as an insurance purchasing organization; TIC 1131.053 requires a group formed for a purpose other than obtaining insurance.
- D) TIC 1131.053 does not require the policyholder to guarantee premiums as a condition of issuing group life insurance.
Memory hook
No group formed just to buy insurance: TIC 1131.053.