Sec. 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 or 1131.111 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 applies.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 2, eff. June 1, 2003.