Texas Insurance Code 1101.005 – Grace Period
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(a) Except as provided by Subsection (b), a life insurance policy:
(1) must contain a provision for a grace period of at least one month for the payment of each premium after the first payment during which the policy remains in force; and
(2) may:
(A) provide for an interest charge on a premium paid during a grace period; or
(B) provide that if an insured dies during a grace period the overdue premium will be deducted from any settlement made under the policy.
(b) The commissioner by rule may require a life insurance policy issued under Section 884.402(3) to contain a grace period that is longer than the grace period required by this section.
Terms Used In Texas Insurance Code 1101.005
- Grace period: The number of days you'll have to pay your bill for purchases in full without triggering a finance charge. Source: Federal Reserve
- Month: means a calendar month. See Texas Government Code 312.011
- Rule: includes regulation. See Texas Government Code 311.005
- Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.