State RegulationsTX specificDifficulty 2/5
A Texas insurer has received proof of the insured's death on a life policy, but the named beneficiary has not yet submitted documents establishing her right to the proceeds. By when must the insurer settle the claim?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under TIC 1101.011, a Texas life insurer must settle a death claim not later than 2 months (60 days) after it receives due proof of death together with proof of the claimant's right to the proceeds; the two requirements are cumulative, so an incomplete claim file does not start the clock. The practical consequence is that TDI treats a failure to settle within that period as a claim-handling violation, and the insurer cannot accelerate the deadline by waiving the claimant's proof of entitlement.
Why the other options are wrong
- B) The period runs from the insurer's receipt of the required proofs, not from the date of death.
- C) 31 days is the premium-payment grace period under TIC 1101.005, not a claim-settlement deadline.
- D) The insurer is entitled to proof of the claimant's right to the proceeds before it is required to pay.
Memory hook
Two proofs start the clock: prove the death, and prove the right to be paid.