(a) An individual accident and health insurance policy must state each exception to or reduction of indemnity for the policy.
(b) Except as provided by Subchapter E, each exception to or reduction of indemnity for the policy must be printed, at the insurer’s option:
(1) with the benefit provision to which the exception or reduction applies; or
(2) under an appropriate caption such as:
(A) “Exceptions”; or
(B) “Exceptions and Reductions.”

(c) Notwithstanding Subsection (b), if an exception or reduction specifically applies only to a particular benefit of an individual accident and health insurance policy, the statement of the exception or reduction must be included with the benefit provision to which the exception or reduction applies.