State RegulationsTX specificDifficulty 1/5
When a Texas insured exercises the group life conversion privilege, which statement describes the individual policy the insurer must issue?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under TIC 1141.354, the converted policy is an individual contract on any form the insurer then customarily issues for conversions except term insurance, written at the insured's attained age and at the premium applicable to the class of risk. Practically, the converted coverage costs more than the group coverage because it is individually rated, and it is a substitute for, not an addition to, the group coverage that ended.
Why the other options are wrong
- B) is wrong because conversion produces an individual policy, not another certificate under a group master policy.
- C) is wrong because the premium is determined by the individual class rate and attained age, not by the group rate the employer paid.
- D) is wrong because the conversion policy replaces the terminated group coverage; it is not a second benefit stacked on top of a group death benefit.
Memory hook
Converted = individual, attained age, no term, no stacking.