Sec. 1101.005.  GRACE PERIOD.  (a)  Except as provided by Subsection (b), a life insurance policy:
(1)  must contain a provision for a grace period of at least one month for the payment of each premium after the first payment during which the policy remains in force;  and
(2)  may:
(A)  provide for an interest charge on a premium paid during a grace period;  or
(B)  provide that if an insured dies during a grace period the overdue premium will be deducted from any settlement made under the policy.
(b)  The commissioner by rule may require a life insurance policy issued under Section 884.402(3) to contain a grace period that is longer than the grace period required by this section.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 2, eff. June 1, 2003.