State RegulationsTX specificDifficulty 1/5
Under TIC 1101.006, after what period may a Texas insurer no longer contest an individual life insurance policy because of a misstatement in the application, apart from the stated exceptions?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under TIC 1101.006, an individual life policy must contain a provision that the policy is incontestable after it has been in force during the lifetime of the insured for two years from its date of issue. The two statutory exceptions are nonpayment of premiums and, at the insurer's option, a violation of conditions relating to naval or military service in time of war. Because the clause runs from the date of issue and requires the insured to be living, a death claim arising within the first two years can still be investigated.
Why the other options are wrong
- B) The two-year period runs from the date of issue under TIC 1101.006, not from the signing of the application.
- C) Payment of the first premium does not start the incontestability clock; TIC 1101.006 ties it to the date of issue.
- D) Completion of underwriting is not the measuring date; the two years run from the date of issue.
Memory hook
Incontestable: two years from issue, while the insured lives, except nonpayment and wartime service.