Section 1151.102 - Prohibited Provisions(a) An industrial life insurance policy may not:(1) require a cause of action based on the policy to be initiated before the second anniversary of the date the cause of action accrues; or(2) except as otherwise provided by this subchapter, establish a method of settlement at maturity that provides less value than the face amount of insurance coverage provided by the policy and any dividend additions to the policy, less:(A) any debt owed to the insurer on the policy; and(B) any premium that may be deducted under the terms of the policy.(b) Subsection (a)(2) does not prevent a limitation from being imposed on payment of an additional accidental death benefit in case of accidental death resulting from certain specified causes.(c) A nonparticipating or term policy may not incorporate any part of a provision described by Subchapter B or Section 1151.152 that does not apply to that type of policy.Tex. Ins. Code § 1151.102
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 2, eff. 6/1/2003.