A Texas employee's group life coverage ends when she leaves her employer. What must she do to obtain the individual policy she is entitled to under the Texas group life conversion statute?

Why D is correct

Under TIC 1141.354, the conversion right is exercised by the covered person applying to the insurer and paying the first premium within the conversion period that follows termination of the group coverage; the right is personal to the insured and lapses if it is not exercised in time. The practical consequence is that although the terminating employee usually receives a conversion notice, the responsibility to act and to pay belongs to her, and the employer's failure to notify does not extend the right indefinitely.

Why the other options are wrong

• A) Stating an intention is not exercising the right; both the application and the first premium are required within the conversion period.
• B) The employer sponsors the group plan but does not issue individual policies or exercise the conversion right.
• C) TDI does not operate an assigned-risk facility for individual life insurance.

Memory hook

Apply and pay — intent alone never converted a policy.