Short answer: In Texas, only employees insured under the policy for at least 5 years get a conversion right when the group policy itself ends, and the policy may cap the conversion at the lesser of $2,000 or the lost coverage minus any new group life they become eligible for within 31 days.
Termination of employment and termination of the whole policy are treated differently. When the group policy ends, or is amended to drop a class of insured employees, the Texas Insurance Code gives a conversion right to each insured person whose coverage ends and who had been insured under the policy for at least 5 years.
The policy may limit that converted amount to the lesser of: the coverage that ended, minus any group life the person is or becomes eligible for under a policy issued or reinstated by the same or another insurer within 31 days; or $2,000.
In practice, when an employer simply moves group life to a new carrier, the new policy replaces the old coverage and conversion is rarely the issue. When an employer drops life altogether, employees should be told promptly, because individually underwritten coverage may be their only real replacement.