The Ombudsman A seller of an insurance-funded prepaid funeral benefits contract may not accept money with respect to the contract until the contract has been executed by all parties to the agreement except the insurance company.
Seller holds a permit to sell insurance-funded, prepaid funeral benefits contracts in Texas.
In summary, a seller may not accept a payment with respect to a prepaid funeral benefits contract until the contract has been executed by all parties other than an insurance company issuing coverage. Seller's current practice plainly involves accepting payment before the contract is fully executed and consequently is proscribed by Finance Code, Chapter 154. Within 30 days, the contract is completed and signed by an officer of Seller. The completed contract is then signed by the purchaser and the funeral provider in a second visit. Further, if the contract is not sold by a funeral provider, the provider designated in the contract must be a party to the contract, and must agree in the contract to provide the specified benefits.