(a) On the lapse of an individual life insurance policy following the unintentional default in the payment of premiums caused by the mental incapacity of the insured, a person is entitled to have the policy reinstated under this chapter if:
(1) the policy had been in effect continuously for at least five years immediately preceding the lapse; and
(2) there was not a default in the payment of premiums on the policy during the period described by Subdivision (1).
(b) The insurer is not required to reinstate a policy or pay benefits under this chapter if the insured first became mentally incapacitated after the expiration of an applicable grace period contained in the policy.