Board of Inmlranoe CQPaissioaer8 AImtan, Texas
&teaticmryn. J. J. T&i&
&tlemear OpinionHo. O-2780 Be: Whether the proposedoontraof of Barvesoa and Cole, Fbrt lkmth, Texa6, is ome of iamrsmoe.
Relativeto the subjeotmatter of your oerrespondenoo under date of September24th, there ir sulaxltteda proposed "burialserviaecontract"de- sired to be issuedby Earvwon and Cole, a FuneralHome, ooaoerniagwhiab you requestan opinionof *in departmentar to whethermoh proposedeon- traut my issue ia Texas. From other eorretpondemeaddreas*$to yam and attaahedto the request,me may safelyamtae that the "iheral home* OT ooatraotorhas not oomplied'with the provisioa~~ of Senate Bill 136, 4Sth Legislatswe,Se&ion 23 thereof. The question'10are sonfrontedwith, therefore,ia whether or not the issuan00of a 0wtifioate mob as'the pro- posed oontrmt, wherebythe "funeralhors" agrees to f'nmirhas provided ia the oontrqat,a "mtmtdardfuneralrenioe.acbordiag to orirrentlirts of prioes thoreforoa file in the ofiloe of Earresoaand Cele at the time of death,"i8 within the prtiaiom of Seoticm23 of S-ate Bill 136, 46th Legirlaturo,as being a aoatraotof issurmae.
In view of the statedpurpoete of the proporedImrial somioe owtraot presented,m deem 5% Wmepw~sary to oopy or rootateherciq fts varims pre- visioas. Tke do& @m forth suMtaxrtlally an und~img wb1-6~ tka funeralhome, in 0oaeidsratioar of being desfgmhd tv wf8b (L %taaUa~ Amoral sorvioe"and whiah it agree6to do so omtiageat upon the daath of the payer or members of the faucllysmed thereia,the payor agreesto assign over the prooeedsof the life iamranoe peliay ia mob amountas designated im *o fa0e of the oertifioate. It is to be noted that the funeralhome who isauesthe artifiaate is designatedtrusteebenefioiary. The funeral hame olainm00 insura%le~ interestuntil death oo0ura,and the effeot of this eertifloateaa an assignmentis dependentspq sot only the effwtuat- lag of the pollmy of inmmanoe whereinthe f'ua*yUhemm is nude fke truetee beaefioiary,lmt alrrothe ooatbuatioa ef aaoh policy in ions. Iu this ooaaeotiom,the prapomedoolltixot prmides that the lapse of the polioy of iasuraaoefor mm-pegnent of the premiumta the inmraaoe mm@, wids the contraatand reinstatementof the poliay reixtmtatea the ooatraate It i6 furtherstated thereinthat in the wmzt death oomre under oireumstaaoes or ooaditioaaexpre6sedin the policy, wah aa euioido,reliscring the ia- euranoecxmpmy fro01liabilityfor paymSnt,~w funeral semi- is $0 be rendered. Se0tion 23 of Senate Bill 136, nupra,iaoorporatedin Vernon's Board of IasurauoeCormnissioasrs, pago 2 (O-2780)
Civil Statutes,uudsr Artiolo 5068-1,provides:
'Sec. 23. w individual,individuals,firms, eo-partasrehips, oorpora- tious or assooiatioaedoing the ksiuese of providingburial 0r funeral benefits,uhioh under any oirGlmatsncss may bs payablepartly er uholly in morohaudissor wrvieos, sot in exosss of One aadrsd snd Fifty #150&O) I)ollaks, or the value thereof,am hereby deolaredto bs lmrial oonpanies, assooiatioasor sooisties,and shall organlaounder pro@.sioasof Chapter 274, Aote of the Forty-FirstLegislature,1929, and snsadnsntsthereto) and shall opsratsunder and bs governedby Chapter274, aate of the For+ fir8t Lsjciatlatme, 1829, and amendmantathereto,and this A&. It shall bs unlanfulfor any individual,individuals,firms, co-partnerships, oor- poratione,or associatiolie, other than those definedabops, to mgags in the ?au?iaees of providiagburial or funeralbenefits,which under lrnyair- sumstsnoeemap bs paid wholly or partly in merchandiseor servioos.0
Santioa1 of said law, providesin part:
"ThisA& &ml1 apply to and arbraoeall insuranaeoaspaniesand associations, whether ia0Qyporatsdor not, which issus polioiesor oertifioates0f insur- anos on the lives of