Tex. Ins. Code Section 1131.112
Payment of Benefits on Death of Insured Before Individual Policy Becomes Effective

(a)

A group life insurance policy must provide that if an individual insured under the group policy dies during the period within which the individual would have been entitled to have an individual policy issued as provided by Section 1131.110 (Right to Individual Policy on Termination of Employment or Membership) or 1131.111 (Right to Individual Policy on Termination of Coverage Under Group Policy) and before such an individual policy takes effect, the amount of life insurance that the individual would have been entitled to have issued to the individual under the individual policy is payable as a claim under the group policy.

(b)

This section applies without regard to whether:

(1)

the application for the individual policy has been made; or

(2)

the first premium for the individual policy has been paid.

(c)

This section does not apply to:

(1)

a policy issued to a creditor to insure the creditor’s debtors; or

(2)

a policy to which Section 1131.703 (Insurance for Liabilities Related to Fringe Benefits) applies.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 2, eff. June 1, 2003.

Source: Section 1131.112 — Payment of Benefits on Death of Insured Before Individual Policy Becomes Effective, https://statutes.­capitol.­texas.­gov/Docs/IN/htm/IN.­1131.­htm#1131.­112 (accessed Feb. 26, 2025).

1131.001
Definition 1131.002
Certain Group Life Insurance Authorized 1131.003
Certain Wholesale, Franchise, or Employee Life Insurance Authorized 1131.004
Forfeiture of Certificate of Authority for Unauthorized Group Life Insurance Contract 1131.005
Guaranteeing Issuance of Life Insurance Policy Without Evidence of Insurability 1131.006
Assignment of Benefits 1131.007
Policy Form 1131.051
Employers 1131.052
Labor Unions 1131.053
Funds Established by Employers or Labor Unions 1131.054
Governmental Entities or Associations of Public Employees 1131.055
Spouses and Children of Employees of United States Government 1131.056
Principals 1131.057
Creditors 1131.058
Veterans’ Land Board 1131.059
Associations or Trusts for Payment of Funeral Expenses 1131.060
Nonprofit Organizations or Associations 1131.064
Other Groups 1131.065
Wholesale, Franchise, or Employee Life Insurance 1131.101
Required Provisions 1131.102
Nonforfeiture 1131.103
Grace Period 1131.104
Incontestability of Policy 1131.105
Application for Policy 1131.106
Evidence of Insurability 1131.107
Adjustment of Premiums or Benefits if Age of Insured Is Misstated 1131.108
Insurance Certificate 1131.109
Person to Whom Benefits Are Payable 1131.110
Right to Individual Policy on Termination of Employment or Membership 1131.111
Right to Individual Policy on Termination of Coverage Under Group Policy 1131.112
Payment of Benefits on Death of Insured Before Individual Policy Becomes Effective 1131.151
Continuation of Benefits for Family Members After Death of Insured 1131.201
Applicability of Subchapter 1131.202
Eligible Employees 1131.203
Payment of Premiums 1131.204
Minimum Enrollment 1131.205
Amounts of Insurance 1131.251
Applicability of Subchapter 1131.252
Eligible Employees or Members 1131.253
Payment of Premiums 1131.254
Minimum Enrollment 1131.255
Amounts of Insurance 1131.301
Applicability of Subchapter 1131.302
Eligible Employees or Members 1131.303
Payment of Premiums 1131.304
Minimum Enrollment 1131.351
Applicability of Subchapter 1131.352
Payment of Premiums 1131.353
Amounts of Insurance 1131.354
Conversion Rights 1131.355
Certificate of Insurance 1131.401
Applicability of Subchapter 1131.402
Eligible Agents 1131.403
Payment of Premiums 1131.404
Minimum Enrollment 1131.405
Amounts of Insurance 1131.451
Applicability of Subchapter 1131.452
Eligible Debtors 1131.453
Payment of Premiums 1131.454
Minimum Enrollment 1131.455
Amount of Insurance 1131.456
Payment of Proceeds 1131.457
Annuities and Endowment Insurance Prohibited 1131.501
Applicability of Subchapter 1131.502
Eligible Members 1131.503
Payment of Premiums 1131.504
Minimum Enrollment 1131.505
Amounts of Insurance 1131.701
Applicability of Subchapter 1131.702
Payment of Premiums 1131.703
Insurance for Liabilities Related to Fringe Benefits 1131.751
Applicability of Subchapter 1131.752
Payment of Premiums 1131.753
Minimum Enrollment 1131.755
Individual Application Required 1131.756
Right to Individual Policy on Termination of Employment or Membership 1131.757
Optional Policy Provisions 1131.758
Certain Policies and Plans Unaffected 1131.801
Applicability of Subchapter 1131.802
Extension of Group Life Insurance to Spouses and Children 1131.803
Payment of Premiums 1131.804
Amounts of Insurance 1131.805
Conversion Rights 1131.806
Certificate of Insurance 1131.851
Applicability of Subchapter 1131.852
Continuation of Group Life Insurance During Labor Dispute Required for Certain Policies 1131.853
Contributions if Policyholder Is Trustee 1131.854
Contributions if Policyholder Is Not Trustee 1131.855
Payment of Contribution and Premium 1131.856
Past Due Premium 1131.857
Individual Premium Rate Increase 1131.858
Premium Rate Change Not Limited 1131.859
Limitations on Continuation of Coverage 1131.860
Other Provisions
Green check means up to date. Up to date

Accessed:
Feb. 26, 2025

§ 1131.112’s source at texas​.gov