(a) This section applies only to a policy delivered or issued for delivery in this state before March 29, 1941, under former Article 3.43 of this code.
(b) An insured or a beneficiary of the insured is entitled to elect extended term or paid-up insurance under an industrial life insurance policy that does not by its terms provide a stipulated form of insurance to the insured or beneficiary on default in payment of premiums if:
(1) premiums have been paid on the policy for at least three years; and
(2) the insured or beneficiary gives written notice of the election to the insurer at the insurer’s home office before the expiration of the term of extended insurance.

(c) An insured or beneficiary who does not make an election as provided by Subsection (b) is considered to have elected extended term insurance.
(d) The net value of extended term or paid-up insurance shall be determined as provided by Section 1151.153.