Texas General Lines — Life, Accident, Health and HMOTexas Statutes and Rules Specific to Life InsuranceMedium
A life insurance agent in Texas fails to provide the applicant with a Buyer's Guide and Policy Summary at the time of application for a new individual life insurance policy. Which of the following is true regarding this omission?
- AThe agent must provide them at the time of policy delivery if not given at application.
- BThe policy is automatically void and premiums must be returned.
- CThe insurer is exempt from providing these documents if the agent failed to do so.
- DThe agent faces a fine, but the policy remains valid without the documents.
Show answer & explanationAnswer & explanation
Correct answer: A. The agent must provide them at the time of policy delivery if not given at application.
Texas regulations require that the Buyer's Guide and Policy Summary be provided to an applicant for individual life insurance at or before the time of application. If not provided at application, they must be delivered with the policy.
Why the other options are wrong
- B. Failure to provide these documents does not automatically void the policy.
- C. The insurer remains responsible for ensuring these documents are provided to the applicant.
- D. While agents can face penalties for non-compliance, the primary focus is on ensuring the applicant receives the documents.
Life Insurance Disclosure (Texas)
Texas requires specific disclosure documents, including a Buyer's Guide and Policy Summary, to be provided to applicants for individual life insurance to ensure informed decision-making.
- Mandatory for individual life insurance.
- Buyer's Guide explains general features.
- Policy Summary details specific policy features.
- Must be given at application or policy delivery.
Memory trick: Disclosure is key, if not at first, then at delivery.