(a) Except as provided by Subsection (b), a life insurance policy may not contain a provision for a settlement at maturity that is less than the amount insured on the face of the policy plus the amount of any dividend additions to the policy minus the sum of the amount of any debt to the company that issues the policy and the amount of any premium that may be deducted from the settlement under the terms of the policy.
(b) A life insurance policy may provide for a settlement that will be less than the amount required under Subsection (a) if the death of the insured is:
(1) by the insured’s own hand regardless of whether the insured is sane or insane;
(2) caused by following a hazardous occupation that is stated in the policy; or
(3) the result of aviation activities under conditions specified in the policy and approved by the department under Chapter 1701.