Fort Worth life insurance attorneys and those in Dallas and Weatherford need to know what the requirements are in a policy.
Texas Insurance Code, Section 1101.002(a), tells us life insurance policies must contain several prescribed provisions. These required provisions according to the Texas Insurance Code, generally include:
(a) Section 1101.003 says a life insurance policy must provide that the policy or the policy and the application for the policy constitute the entire contract between the parties;
(b) Section 1101.004 says all premiums are payable in advance either at the home office of the company or to an agent of the company upon delivery of a receipt signed by one or more of the officers who are designated in the policy;
(c) Section 1101.005 says there is a grace period of at least one month, for the payment of every premium after the first, which may be subject to an interest charge if paid during the grace period, during which the insurance may continue in force;
(d) Section 1101.006 says the policy, or policy and application, will constitute the entire contract between the parties and will be incontestable after it has been in force during the lifetime of the insured for two years from its date, except for nonpayment of premiums (it may also contain an exception for violation of conditions of policy relating to naval and military service in time of war);
(e) Section 1101.007 says all statements made by the insured will, in the absence of fraud, be deemed representations and not warranties;
(f) Section 1101.008 says if the insured’s age has been understated, the amount payable under the policy will be such as the premium paid would have purchased at the correct age;
(g) Section 1101.008 also says that if, in the event of default in premium payments, the value of the policy will be applied to the purchase of other insurance, and if such insurance is in force and the original policy has not been surrendered to the company and canceled, the policy may be reinstated within three years from such default upon evidence of insurability satisfactory to the company and payments of arrears of premiums with interest;
(h) Section 1101.011 says when a policy becomes a claim by the insured’s death, settlement will be made upon receipt of or not later than two months after due proof of death and the claimant’s rights to the proceeds;
(i) Section 1101.012 says the policy must include a table showing the amounts of installments in which the policy may be payable.
Knowing the above helps an insurance law attorney properly advise a client when they have questions about whether or not they have been treated properly in the claims handling process.
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