Life and health insurance (Texas) practice

Grace owns a universal life policy. Her income will drop for a year while she returns to school, so she plans to pay less premium without surrendering the policy. What happens if her reduced payment is less than the policy's cost of insurance?

• AThe insurer must waive the shortfall until her income recovers
• BThe policy automatically converts to reduced paid-up insurance
• CThe death benefit is frozen at the cash value until full premiums resume
• DThe shortfall comes out of the cash value, shortening coverage