Under Texas code, the MAXIMUM for which a spouse may be insured in a company group life program with a $50,000 death benefit is $ ______.

Study for the Texas General Lines – Life, Accident, and Health Insurance exam. Engage with questions, hints, and explanations. Get exam ready!

Multiple Choice

Under Texas code, the MAXIMUM for which a spouse may be insured in a company group life program with a $50,000 death benefit is $ ______.

Explanation:
In Texas group life coverage for a spouse is typically limited to a percentage of the employee’s life insurance amount. The common rule is 50% of the employee’s coverage. Here, the employee’s death benefit is 50,000, so the spouse can be insured for up to 50% of that, which is 25,000. That’s why 25,000 is the maximum. Choices like 75,000 or 50,000 would exceed the typical cap, while 10,000 is below the allowed maximum.

In Texas group life coverage for a spouse is typically limited to a percentage of the employee’s life insurance amount. The common rule is 50% of the employee’s coverage. Here, the employee’s death benefit is 50,000, so the spouse can be insured for up to 50% of that, which is 25,000. That’s why 25,000 is the maximum. Choices like 75,000 or 50,000 would exceed the typical cap, while 10,000 is below the allowed maximum.

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