State of Texas Insurance Company Regulations
Each state in the U.S. makes its own laws on how it will regulate the business of insurance in the state. While many states pass similar laws regarding insurance sales and company management, there are always subtle differences. Before buying insurance in Texas, make sure you understand some of the more common laws in that state.
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Life Insurance Settlement Process
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Life insurance death claims are more involved for insurers in Texas than in most other states. In Texas, a life insurance company must begin settling a death claim within 15 days of receiving the death claim form. The company must then update the beneficiary as to the status of the claims process within another 15 days. Claims cannot take longer than two months to settle.
Group Health Insurance
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Insurance companies cannot turn you down for group health insurance because of your health status. As long as your employer offers a non-HMO plan, you are guaranteed coverage through your employer. If your employer offers an HMO plan, you may be turned down if the HMO does not service the area where you live.
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Individual Health Insurance
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Individual health insurance can be based on your health in Texas. This means that a health insurer can turn you down because of your health status. This differs significantly from group health insurance. However, if you are turned down for private insurance, you are generally eligible for insurance through the Texas health insurance pool.
Life Insurance Grace Period
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A 30-day grace period protects your policy from lapsing due to non-payment of premiums on your life insurance policy. During this 30-day period, the insurer cannot cancel your life insurance policy. You must bring the insurance policy current by the next premium payment, however, or your insurance company can cancel your coverage.
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References
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