SECTION 4.613. Family Group Special Requirements

(a) A family group life insurance policy is considered to be any life insurance policy, other than a regular joint life insurance policy, that grants benefits upon the death of each of the insured members of the family. This does not include individual policies with payor death benefits or beneficiary death benefits when such benefits are provided as a part of the basic policy, or by supplementary agreement and when such additional benefits are designed primarily to promote the continuance of the basic policy. The requirements pertaining to family group policies may not be avoided, however, by merely adding insureds under an individual contract by means of riders or supplementary agreements.

(b) There must be included on the face of the policy the name and age of each insured; the name of the beneficiary; the maximum amount that is payable to the payee in the policy in the case of death of such insured person or persons; and designation of all paragraphs or provisions limiting or reducing the payment to less than the maximum provided in the policy. Suicide clauses are the most common type of reduction provision. The suicide clause, if used, should clearly indicate any effect that the suicide of one insured would have on the insurance of other insureds.

(c) Premiums deductible by the terms of the policy and indebtedness to the company on the policy are considered as counterclaims by the company against the beneficiary. It is not necessary that provisions for such deductions be placed on the face of the policy.

(d) The "face" of the policy means the first page of the policy.

(e) If the policy provides for coverage that will become effective on the lives of persons who become members of the family group (by birth or adoption) after the policy is issued, information relative to these future members need not be stated on the face of the policy. The policy form will be acceptable if the provisions relative to these additional members are clear and unambiguous.

Source Note: The provisions of this §4.613 adopted to be effective January 1, 1976; amended to be effective September 20, 1982, 7 TexReg 3244; transferred effective September 1, 2023, as published in the July 28, 2023, issue of the Texas Register, 48 TexReg 4127; amended to be effective January 24, 2024, 49 TexReg 250