Section 3.114 - Dependent Child Riders and Family Term Riders(a) The rider must specify the effect on the rider of the death of the insured(s) under the base policy prior to the expiry date(s) of the rider. The following are acceptable: (1) the rider may terminate, in which case no incontestability provision is required;(2) the rider may convert to paid-up term insurance;(3) if paid-up term insurance can be surrendered for its cash value, the rider must contain the "surrender within 30 days" statement required by Insurance Code § 1105.007; or(4) the premium for the rider may be waived to the expiry date(s).(b) If paid-up term insurance is available on the death of the insured under the base policy, the rider or the policy may not provide an incontestable provision for the rider less favorable than specified in Insurance Code § 1101.006 with respect to the coverage for each insured from the date the coverage for that insured becomes effective.(c) The rider or policy must specify the effect on the rider should the insured(s) under the base policy commit suicide.28 Tex. Admin. Code § 3.114
The provisions of this §3.114 adopted to be effective September 20, 1982, 7 TexReg 3244; Amended by Texas Register, Volume 47, Number 18, May 6, 2022, TexReg 2759, eff. 5/11/2022