State RegulationsTX specificDifficulty 2/5
Under a Texas group life policy, a covered spouse's status as a dependent ends when the marriage is dissolved. Which statement best describes the result?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under TIC 1131.151 and Chapter 1131, eligibility for dependent coverage depends on the person meeting the policy's dependent definition at the relevant time, so once a person ceases to be a dependent by reason of divorce, coverage for that person ends and the dependent conversion privilege may apply. Practically, a Texas agent should prompt employees to update dependent records after a divorce and to advise the former spouse about converting, because a death claim on a person who is no longer eligible will be denied.
Why the other options are wrong
- B) is wrong because if coverage ended before death there is no death benefit at all, and proceeds normally follow the beneficiary designation rather than an estate.
- C) is wrong because dependent status is tested against the policy definition, not carried automatically until the employee's coverage ends.
- D) is wrong because divorce does not transfer ownership of the employee's own coverage; ownership and beneficiary designations are separate from dependent eligibility.
Memory hook
No longer a dependent, no longer covered.