reglab/statecodes huggingface dataset:
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 154 - Prepaid Funeral Services › Subchapter B. Powers and Duties of Department › Section 154.051. Administration of Chapter; Fees

Sec. 154.051.  ADMINISTRATION OF CHAPTER;  FEES.  (a)  The department shall administer this chapter.
(b)  The commission may adopt reasonable rules concerning:
(1)  fees to defray the cost of administering this chapter;
(2)  the keeping and inspection of records relating to the sale of prepaid funeral benefits;
(3)  the filing of contracts and reports;
(4)  changes in the management or control of an organization;  and
(5)  any other matter relating to the enforcement and administration of this chapter.
(c)  The department may not maintain unnecessary fund balances.  Fee amounts must be set in accordance with this requirement.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.  Amended by Acts 2001, 77th Leg., ch. 867, Sec. 73, eff. Sept. 1, 2001.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 154 - Prepaid Funeral Services › Subchapter B. Powers and Duties of Department › Section 154.052. Annual Report

Sec. 154.052.  ANNUAL REPORT.  (a)  The department may require a permit holder that has outstanding contracts for prepaid funeral benefits to submit an annual report in the form required by rule of the commission.
(b)  The department shall require a seller that discontinues the sale of prepaid funeral benefits but has outstanding contracts to submit an annual report until the contracts are fully discharged.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 1190 (H.B. 3762), Sec. 2, eff. June 1, 2010.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 154 - Prepaid Funeral Services › Subchapter B. Powers and Duties of Department › Section 154.053. Records; Examination

Sec. 154.053.  RECORDS;  EXAMINATION.  (a)  A permit holder that has outstanding contracts for prepaid funeral benefits shall maintain records as required by rule of the commission.
(b)  The department shall examine the records of each permit holder at least once every 18-month period, except that the department may examine a permit holder more frequently if:
(1)  the permit holder:
(A)  has received a uniform risk rating, under standards adopted by rule of the commission, that is less than satisfactory as a result of the permit holder's most recent examination; or
(B)  is subject to a formal enforcement proceeding or order by the commissioner; or
(2)  the commissioner determines in the exercise of discretion that additional examination is necessary to safeguard the interests of purchasers and beneficiaries and to efficiently enforce applicable law.
(c)  The department may defer an examination under this section for not more than six months if the commissioner determines that deferment of the examination is necessary for the efficient enforcement of applicable law.
(d)  Any record may be maintained and provided for examination in electronic format if the record is reliable and can be retrieved in a timely manner.
(e)  The department, in consultation with the advisory committee established under Section 154.208, shall develop an examination manual that includes procedures intended to reduce the expense of examinations under this section to the department and the permit holders.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 1190 (H.B. 3762), Sec. 3, eff. June 1, 2010.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 154 - Prepaid Funeral Services › Subchapter B. Powers and Duties of Department › Section 154.054. Examination Fee

Sec. 154.054.  EXAMINATION FEE.  (a)  For each examination conducted under Section 154.053, the commissioner or the commissioner's agent shall impose on the seller a fee in an amount set by the commission under Section 154.051 and based on the seller's total outstanding contracts.
(b)  The amount of the fee must be sufficient to cover:
(1)  the cost of the examination, including:
(A)  salary and travel expenses for department employees, including travel to and from the place where the records are kept;  and
(B)  any other expense necessarily incurred in conducting the examination;
(2)  the equitable or proportionate cost of maintaining and operating the department;  and
(3)  the cost of enforcing this chapter.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.  Amended by Acts 2001, 77th Leg., ch. 867, Sec. 74, eff. Sept. 1, 2001.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 154 - Prepaid Funeral Services › Subchapter B. Powers and Duties of Department › Section 154.055. Disclosure of Certain Information; Confidentiality

Sec. 154.055.  DISCLOSURE OF CERTAIN INFORMATION;  CONFIDENTIALITY.  (a)  Information relating to the financial condition of a seller obtained by the department directly or indirectly, through examination or otherwise, other than published statements, is confidential.
(b)  The files and records of the department relating to the financial condition of a seller are confidential.
(c)  The commissioner may disclose the information described by Subsection (a) or (b) to an agency, department, or instrumentality of this or another state or the United States if the commissioner considers disclosure to be in the best interest of the public and necessary or proper to enforce the laws of this or another state or the United States.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 154 - Prepaid Funeral Services › Subchapter B. Powers and Duties of Department › Section 154.056. Payment of Restitution Money

Sec. 154.056.  PAYMENT OF RESTITUTION MONEY.  The department shall pay money received under a restitution order to the injured party as ordered.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 154 - Prepaid Funeral Services › Subchapter C. Permits › Section 154.101. Permit Requirement

Sec. 154.101.  PERMIT REQUIREMENT.  A person must hold a permit issued under this subchapter to:
(1)  sell prepaid funeral benefits, or accept money for prepaid funeral benefits, in this state under any contract;  or
(2)  solicit an individual's designation of prepaid funeral benefits to be provided out of a fund, investment, security, or contract, including a contract or policy of insurance authorized, and sold under a license issued, by the Texas Department of Insurance, to be created or purchased by that individual at the suggestion or solicitation of the seller.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 154 - Prepaid Funeral Services › Subchapter C. Permits › Section 154.102. Permit Application; Fee

Sec. 154.102.  PERMIT APPLICATION; FEE.  To obtain a permit to sell or continue to sell prepaid funeral benefits, a person must:
(1)  be one of the following, if the person proposes to offer and sell prepaid funeral benefits contracts subject to Subchapter E:
(A)  a funeral provider;
(B)  an insurance company; or
(C)  the insurance holding company for an insurance company if the insurance company does not have the authority under its domiciliary law to directly hold a permit issued under this chapter;
(2)  be a funeral provider, if the person proposes to offer and sell prepaid funeral benefits contracts subject to Subchapter F;
(3)  file an application for a permit with the department on a form prescribed by the department;
(4)  pay a filing fee in an amount set by the commission under Section 154.051; and
(5)  if applicable, pay extraordinary expenses required for out-of-state investigation of the person.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.  Amended by Acts 2001, 77th Leg., ch. 867, Sec. 75, eff. Sept. 1, 2001.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 1190 (H.B. 3762), Sec. 4, eff. September 1, 2009.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 154 - Prepaid Funeral Services › Subchapter C. Permits › Section 154.103. Issuance of Permit

Sec. 154.103.  ISSUANCE OF PERMIT.  (a)  The commissioner may investigate an applicant before issuing an initial permit.
(b)  The commissioner shall approve the application and issue a permit to the applicant if the commissioner finds that the business ability, experience, character, financial condition, and general fitness of the applicant warrant the public's confidence.  The commissioner shall notify the applicant if the commissioner finds otherwise.
(c)  The applicant on request is entitled to a hearing on the denial of the application, to be held not later than the 60th day after the date of the request.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 154 - Prepaid Funeral Services › Subchapter C. Permits › Section 154.104. Term of Permit

Sec. 154.104.  TERM OF PERMIT.  (a)  The commission by rule shall prescribe the term of a permit issued under this subchapter.
(b)  If the commission prescribes the term of a permit issued under this subchapter for a period other than one year, the commission shall prorate the fee required under this subchapter as necessary to reflect the term of the permit.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.  Amended by Acts 2001, 77th Leg., ch. 867, Sec. 76, eff. Sept. 1, 2001.
Amended by:
Acts 2019, 86th Leg., R.S., Ch. 20 (S.B. 614), Sec. 19, eff. September 1, 2019.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 154 - Prepaid Funeral Services › Subchapter C. Permits › Section 154.105. Prohibition on Transfer of Permit

Sec. 154.105.  PROHIBITION ON TRANSFER OF PERMIT.  A permit is not transferable.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 154 - Prepaid Funeral Services › Subchapter C. Permits › Section 154.106. Transfer of Business Ownership

Sec. 154.106.  TRANSFER OF BUSINESS OWNERSHIP.  (a)  A permit holder shall notify the department and either the depository of the money held under Subchapter F or the issuer of insurance policy funding contracts under Subchapter E of a transfer of ownership of the permit holder's business or a transfer of 25 percent or more of the stock or other ownership or membership interest of the business in a single transaction.  The notice must be given:
(1)  in the case of a voluntary transfer, not later than the seventh day after the date the contract for transfer is executed; or
(2)  in the case of an involuntary transfer, not later than the first business day after the date the permit holder receives notice of the impending foreclosure or other involuntary transfer.
(b)  If the proposed transferee will own 51 percent or more of the business and is not a permit holder, the proposed transferee shall file an application for a permit with the department in accordance with this subchapter.  If the application is complete, the commissioner shall approve or deny the application before the 16th day after the date the application was received.  The transfer of prepaid funeral benefits contracts of the permit holder that is the transferor may not occur until after the date a permit is issued to the applicant that is the transferee.
(c)  If the commissioner denies the application, the applicant may request a hearing not later than the 15th day after the date on which notice of the determination is hand-delivered or the notice is mailed, whichever date is earlier.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 1190 (H.B. 3762), Sec. 5, eff. September 1, 2009.
Acts 2009, 81st Leg., R.S., Ch. 1190 (H.B. 3762), Sec. 39, eff. September 1, 2009.
Acts 2013, 83rd Leg., R.S., Ch. 39 (S.B. 297), Sec. 1, eff. September 1, 2013.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 154 - Prepaid Funeral Services › Subchapter C. Permits › Section 154.107. Required Renewal for Sellers

Sec. 154.107.  REQUIRED RENEWAL FOR SELLERS.  (a)  A seller that has outstanding contracts shall renew the seller's permit until the contracts are fully discharged.
(b)  A seller may renew the seller's permit as an unrestricted permit if the seller:
(1)  wishes to continue to sell prepaid funeral benefits; and
(2)  demonstrates to the commissioner that the seller continues to meet the qualifications and satisfy the requirements that apply to an applicant for a permit.
(c)  A seller must renew the seller's permit as a restricted permit if the seller:
(1)  cannot demonstrate to the commissioner that the seller continues to meet the qualifications and satisfy the requirements that apply to an applicant for a permit; or
(2)  no longer wishes to sell prepaid funeral benefits.
(d)  A seller that holds a restricted permit may not sell prepaid funeral benefits during the period a restricted permit is in effect.  A contract entered into by a seller that at the time the contract is entered into holds a restricted permit is void and unenforceable and is not eligible for payment from a guaranty fund established under this chapter.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 39 (S.B. 297), Sec. 2, eff. September 1, 2013.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 154 - Prepaid Funeral Services › Subchapter C. Permits › Section 154.108. Renewal Fee

Sec. 154.108.  RENEWAL FEE.  The commission shall set the renewal fee under Section 154.051.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.  Amended by Acts 2001, 77th Leg., ch. 867, Sec. 77, eff. Sept. 1, 2001.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 154 - Prepaid Funeral Services › Subchapter C. Permits › Section 154.109. Grounds for Cancellation or Suspension of or Refusal to Renew Permit

Sec. 154.109.  GROUNDS FOR CANCELLATION OR SUSPENSION OF OR REFUSAL TO RENEW PERMIT.  (a)  The commissioner by order may cancel or suspend a permit if the commissioner finds, by examination or other credible evidence, that the permit holder:
(1)  violated this chapter or another law of this state relating to the sale of prepaid funeral benefits, including a final order of the commissioner or rule of the commission;
(2)  misrepresented or concealed a material fact in the permit application;  or
(3)  obtained, or attempted to obtain, the permit by misrepresentation, concealment, or fraud.
(b)  The commissioner by order may refuse to renew a permit if the commissioner finds, by examination or other credible evidence, that the permit holder does not possess a qualification required by Section 154.103(b) for issuance of an initial permit, or that the permit holder:
(1)  committed one or more of the acts described by Subsection (a); and
(2)  did not correct the violation before the 31st day after the date of written notice from the commissioner.
(c)  The commissioner may cancel the permit of a seller that fails to provide to the department evidence of payment of insurance premiums required by the department under Section 154.203 after the department by written notice requests the evidence.
(d)  The commissioner may place on probation a permit holder whose permit is suspended.  If a permit suspension is probated, the commissioner may require the permit holder:
(1)  to report regularly to the department on matters that are the basis of the probation;  or
(2)  to limit its activities as prescribed by the commissioner.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.  Amended by Acts 2001, 77th Leg., ch. 867, Sec. 78, eff. Sept. 1, 2001;  Acts 2001, 77th Leg., ch. 699, Sec. 5, eff. Sept. 1, 2001.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 1190 (H.B. 3762), Sec. 6, eff. September 1, 2009.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 154 - Prepaid Funeral Services › Subchapter C. Permits › Section 154.110. Order to Cancel, Suspend, or Refuse to Renew Permit

Sec. 154.110.  ORDER TO CANCEL, SUSPEND, OR REFUSE TO RENEW PERMIT.  (a)  An order issued under Section 154.109 must state:
(1)  with reasonable certainty the grounds for the order;  and
(2)  the effective date, which may not be before the 16th day after the date the order is mailed.
(b)  The order shall be served on the person named in the order by certified mail, return receipt requested, to the last known address of the person.
(c)  The order takes effect as proposed unless the person named in the order requests a hearing not later than the 15th day after the date the order is mailed.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 154 - Prepaid Funeral Services › Subchapter C. Permits › Section 154.111. Successor Permit Holder

Sec. 154.111.  SUCCESSOR PERMIT HOLDER.  (a)  The commission shall adopt rules governing the selection of a successor permit holder.
(b)  A successor permit holder to whom the commissioner transfers a contract under Section 154.413 shall perform the contract and is entitled to retain the money that would have been due the person whose permit was canceled, including any money seized by the commissioner.
(c)  Any premium received through the selection process that exceeds the claims against the prior permit holder shall be deposited in the fund maintained under Section 154.351.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.  Amended by Acts 2001, 77th Leg., ch. 867, Sec. 79, eff. Sept. 1, 2001.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 154 - Prepaid Funeral Services › Subchapter C. -1. Presale Disclosures › Section 154.131. Brochure

Sec. 154.131.  BROCHURE.  (a)  A seller, directly or through the seller's designated agent, shall provide an informational brochure to each potential purchaser of a prepaid funeral benefits contract.
(b)  The brochure must:
(1)  describe the regulation of prepaid funeral benefits contracts and the trust and insurance funding options available under the law of this state; and
(2)  include a reference to the Internet website required under Section 154.132.
(c)  The department:
(1)  must approve an informational brochure before the brochure may be used by the seller; and
(2)  shall develop a model informational brochure that complies with this section with input from consumers, permit holders, insurers, and funeral providers.
Added by Acts 2009, 81st Leg., R.S., Ch. 1190 (H.B. 3762), Sec. 7, eff. June 1, 2010.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 154 - Prepaid Funeral Services › Subchapter C. -1. Presale Disclosures › Section 154.132. Website

Sec. 154.132.  WEBSITE.  (a)  The department shall establish and maintain an Internet website that provides information to enable consumers to make informed decisions relating to the purchase of prepaid funeral benefits.
(b)  The website:
(1)  must include a description of the trust and insurance funding options available under the law of this state to be developed with input from consumers, permit holders, insurers, and funeral providers;
(2)  may include links to and be linked from the department's website, the Texas Department of Insurance website, and the Texas Funeral Service Commission website;  and
(3)  may include additional information or links to additional information that the department determines may be helpful to consumers of prepaid funeral benefits in this state.
Added by Acts 2009, 81st Leg., R.S., Ch. 1190 (H.B. 3762), Sec. 7, eff. June 1, 2010.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 154 - Prepaid Funeral Services › Subchapter C. -1. Presale Disclosures › Section 154.133. Reference or Link to Website

Sec. 154.133.  REFERENCE OR LINK TO WEBSITE.  Any sales literature or a website that offers or promotes the sale of prepaid funeral benefits contracts to the public must include a reference or link to the Internet website required under Section 154.132.
Added by Acts 2009, 81st Leg., R.S., Ch. 1190 (H.B. 3762), Sec. 7, eff. June 1, 2010.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 154 - Prepaid Funeral Services › Subchapter D. General Provisions for Sales Contracts › Section 154.151. Form of Contract

Sec. 154.151.  FORM OF CONTRACT.  (a)  The department must approve a sales contract form for prepaid funeral benefits before the form is used.
(b)  A sales contract for prepaid funeral benefits must:
(1)  be in writing;
(2)  state the name of the funeral provider or other person primarily responsible for providing the prepaid funeral benefits specified in the contract;  and
(3)  state the details of the prepaid funeral benefits to be provided, including a description and specifications of the material used in the caskets or grave vaults to be furnished.
(c)  If a funeral provider designated in the contract to provide prepaid funeral benefits is not the seller licensed under this chapter, the funeral provider must:
(1)  be a party to the contract;
(2)  agree in the contract to provide those benefits; and
(3)  by signing the contract, agree to discharge the responsibilities imposed on a funeral provider by Section 154.161.
(d)  A sales contract for prepaid funeral benefits, whether in English or Spanish, must be written in plain language designed to be easily understood by the average consumer.  The contract must be printed in an easily readable font and type size.  The department shall provide model contracts complying with this subsection and shall enforce this subsection.
(e)  The commission by rule shall establish a standard disclosure that must be included in each contract to inform purchasers of the goods and services that will be provided or excluded under the contract and the circumstances under which the contract may be modified after death of the beneficiary.  The commission by rule may prescribe a form for the standard disclosure that is designed to more closely conform to variations in sales contract forms that serve different purposes.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.  Amended by Acts 2001, 77th Leg., ch. 699, Sec. 6, eff. Sept. 1, 2001.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 1190 (H.B. 3762), Sec. 8, eff. September 1, 2009.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 154 - Prepaid Funeral Services › Subchapter D. General Provisions for Sales Contracts › Section 154.1511. Cash Advance Items: Non-Guaranteed Merchandise and Services

Sec. 154.1511.  CASH ADVANCE ITEMS:  NON-GUARANTEED MERCHANDISE AND SERVICES.  (a)  A purchaser of a prepaid funeral benefits contract may agree to advance funds for all or any portion of the estimated cost of cash advance items included in a prepaid funeral benefits contract, the actual cost of which are to be determined by existing prices at the time the items are delivered or provided in connection with at-need performance of the contracted funeral.
(b)  Cash advance items included in a prepaid funeral benefits contract must be clearly grouped together and segregated from prepaid funeral benefits in a manner that will permit the average consumer to easily understand that:
(1)  cash advance items are not fixed or guaranteed in price; and
(2)  additional money may be required to fully pay for those items at the time of the funeral.
(c)  A seller shall administer purchaser funds received in advance for cash advance items under a prepaid funeral benefits contract in the manner required by Section 154.159 or 154.203.
(d)  After the death of the contract beneficiary, the funeral provider shall apply the proportionate part of the trust or insurance policy proceeds received under the contract that is derived from advance payment of cash advance items to the current purchase price for the items.  To the extent the proportionate part of contract proceeds:
(1)  is less than the current purchase price for the cash advance items, the funeral provider may collect additional money for the difference in exchange for delivering or providing the items as part of the contracted funeral;  or
(2)  is greater than the current purchase price for the cash advance items, the funeral provider shall promptly refund the excess amount unless that amount is offset against other amounts due to the funeral provider in connection with the contracted funeral.
Added by Acts 2009, 81st Leg., R.S., Ch. 1190 (H.B. 3762), Sec. 9, eff. September 1, 2009.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 154 - Prepaid Funeral Services › Subchapter D. General Provisions for Sales Contracts › Section 154.152. Representations Regarding Approval of Permit Holder

Sec. 154.152.  REPRESENTATIONS REGARDING APPROVAL OF PERMIT HOLDER.  A permit holder may represent that the department has approved or otherwise chosen a prepaid funeral vendor only with the following language:  "The Texas Banking Department regulates the sale of prearranged funeral contracts" and "The form of this contract has been approved by the Department."
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 154 - Prepaid Funeral Services › Subchapter D. General Provisions for Sales Contracts › Section 154.153. Allocation of Sales Price

Sec. 154.153.  ALLOCATION OF SALES PRICE.  A seller may not increase the sales price of an item not covered by this chapter to allocate a lesser sales price to an item covered by this chapter.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 154 - Prepaid Funeral Services › Subchapter D. General Provisions for Sales Contracts › Section 154.154. Agreement to Pay Finance Charge

Sec. 154.154.  AGREEMENT TO PAY FINANCE CHARGE.  A purchaser of a prepaid funeral benefits contract may agree in writing to pay the seller a finance charge in accordance with Chapter 345 on an amount due the seller on the contract.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 154 - Prepaid Funeral Services › Subchapter D. General Provisions for Sales Contracts › Section 154.155. Cancellation of Contract

Sec. 154.155.  CANCELLATION OF CONTRACT.  (a)  A purchaser of a prepaid funeral benefits contract may cancel the contract before maturity by giving written notice of cancellation to the seller on forms prescribed by the department.  The seller shall maintain copies of the cancellation forms for examination by the department.
(b)  Not later than the 30th day after the date of the cancellation notice, the seller of a trust-funded contract shall withdraw and pay to the purchaser money in the depository being held for the purchaser's use and benefit.
(c)  The purchaser or seller may not make a partial cancellation or withdrawal.
(d)  The purchaser of a trust-funded contract is entitled to receive the actual amount paid by the purchaser and half of all earnings attributable to that money, less the amount permitted to be retained as provided by Section 154.252, except as provided by Subsection (e) and by Sections 154.1511, 154.1551, and 154.254.
(e)  A purchaser who cancels a contract on the solicitation of the seller is entitled to withdraw all money paid to the seller and all earnings attributable to that money.  If the money is used to purchase a new prepaid funeral benefits contract under a solicitation by the seller, the new contract must protect the purchaser to an extent equal to or greater than that provided by the original contract, as determined by the department.  Under the new contract, the cost to the purchaser of the same or substantially the same services or merchandise may not be greater than that provided by the canceled contract.
(f)  The cancellation of an insurance-funded contract by the purchaser is subject to Section 154.205.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.  Amended by Acts 2001, 77th Leg., ch. 699, Sec. 7, eff. Sept. 1, 2001.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 1190 (H.B. 3762), Sec. 10, eff. September 1, 2009.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 154 - Prepaid Funeral Services › Subchapter D. General Provisions for Sales Contracts › Section 154.156. Waiver of Right of Cancellation

Sec. 154.156.  WAIVER OF RIGHT OF CANCELLATION.  (a)  The purchaser of a prepaid funeral benefits contract may irrevocably waive the purchaser's right to cancel the contract under Section 154.155.  The waiver must be in a separate writing signed by the purchaser and the seller and must comply with the plain language requirements for the form of a sales contract under Section 154.151.
(b)  A waiver made under this section does not affect:
(1)  a right the purchaser has under the contract to change the beneficiary of the contract;
(2)  the purchaser's right to cancel the contract under Section 154.413;
(3)  an abandonment of the money paid by the purchaser under the contract as provided by Subchapter G;  or
(4)  a modification to the contract as provided by Section 154.1551.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.  Amended by Acts 2001, 77th Leg., ch. 699, Sec. 9, eff. Sept. 1, 2001.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 1190 (H.B. 3762), Sec. 12, eff. September 1, 2009.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 154 - Prepaid Funeral Services › Subchapter D. General Provisions for Sales Contracts › Section 154.157. Performance of Contract

Sec. 154.157.  PERFORMANCE OF CONTRACT.  Delivery of funeral merchandise before death is not performance, in whole or in part, of a prepaid funeral benefits contract entered into after July 15, 1963.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 154 - Prepaid Funeral Services › Subchapter D. General Provisions for Sales Contracts › Section 154.158. Enforcement of Contract

Sec. 154.158.  ENFORCEMENT OF CONTRACT.  A seller that violates Section 154.101 may not enforce a prepaid funeral benefits contract, but the purchaser or an heir or legal representative of the purchaser is entitled to recover:
(1)  the amount paid to the seller under the contract;  and
(2)  the amount paid to a fund or for an investment, security, or contract, including a contract or policy of insurance authorized by the Texas Department of Insurance.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 154 - Prepaid Funeral Services › Subchapter D. General Provisions for Sales Contracts › Section 154.159. Administration of Money Received

Sec. 154.159.  ADMINISTRATION OF MONEY RECEIVED.  Money received for prepaid funeral benefits shall be administered as prescribed by Section 154.155 and Subchapters E and F, as applicable.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 154 - Prepaid Funeral Services › Subchapter D. General Provisions for Sales Contracts › Section 154.160. Agent; Deposit of Money

Sec. 154.160.  AGENT;  DEPOSIT OF MONEY.  (a)  A seller shall designate one or more agents by name or title.
(b)  The seller shall notify the department of:
(1)  the designation not later than the 10th day after the date the seller becomes subject to this chapter;  and
(2)  any change in the designation not later than the 10th day after the date of the change.
(c)  An agent designated under this section is:
(1)  considered a fiduciary for purposes of Section 32.45, Penal Code;  and
(2)  responsible for the deposit of money collected under prepaid funeral benefits contracts.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 1190 (H.B. 3762), Sec. 13, eff. September 1, 2009.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 154 - Prepaid Funeral Services › Subchapter E. Insurance-Funded Prepaid Funeral Benefits › Section 154.201. Requirements for Solicitation of Insurance-Funded Benefits

Sec. 154.201.  REQUIREMENTS FOR SOLICITATION OF INSURANCE-FUNDED BENEFITS.  A seller may not solicit an individual's designation of prepaid funeral benefits to be paid from an insurance policy, unless the insurance policy meets the requirements of Section 154.2021.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 1190 (H.B. 3762), Sec. 15, eff. September 1, 2009.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 154 - Prepaid Funeral Services › Subchapter E. Insurance-Funded Prepaid Funeral Benefits › Section 154.202. Execution of Contract in Conjunction With Application for Policy

Sec. 154.202.  EXECUTION OF CONTRACT IN CONJUNCTION WITH APPLICATION FOR POLICY.  An insurance-funded prepaid funeral benefits contract must be executed in conjunction with the application for the issuance of the insurance policy.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 154 - Prepaid Funeral Services › Subchapter E. Insurance-Funded Prepaid Funeral Benefits › Section 154.2021. Requirements for Insurance Policies

Sec. 154.2021.  REQUIREMENTS FOR INSURANCE POLICIES.  (a)  An insurance policy used to fund prepaid funeral benefits under this chapter must:
(1)  be written on a form approved by the Texas Department of Insurance;
(2)  be issued by an insurance company authorized by the Texas Department of Insurance to engage in the business of insurance in this state; and
(3)  contain the following statement on the cover page or otherwise within the policy or a rider to the policy:  "This policy is issued to fund a prepaid funeral benefits contract subject to Chapter 154 of the Texas Finance Code.  Cancellation of the prepaid funeral benefits contract does not automatically cancel this policy."
(b)  The aggregate initial face value of one or more insurance policies issued to fund a prepaid funeral benefits contract may not exceed the total contract price by more than five percent unless the purchaser:
(1)  receives a conspicuous written disclosure of the purpose and amount of the excess coverage and how the insurance benefit will be applied at contract maturity;  and
(2)  consents in writing to the purchase of the excess coverage.
Added by Acts 2009, 81st Leg., R.S., Ch. 1190 (H.B. 3762), Sec. 16, eff. September 1, 2009.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 154 - Prepaid Funeral Services › Subchapter E. Insurance-Funded Prepaid Funeral Benefits › Section 154.203. Payment of Premiums

Sec. 154.203.  PAYMENT OF PREMIUMS.  (a)  The premiums for an insurance policy that funds prepaid funeral benefits may only be collected by a licensed insurance agent appointed by the insurance company issuing the policy and shall be paid to the insurance company in accordance with the agency agreement between the insurance company and the agent.
(b)  Receipt of premiums by the agent of the insurance company is considered receipt of premiums by the insurance company for purposes of continuing the policy in force.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 1190 (H.B. 3762), Sec. 17, eff. September 1, 2009.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 154 - Prepaid Funeral Services › Subchapter E. Insurance-Funded Prepaid Funeral Benefits › Section 154.204. Conversion From Trust-Funded Prepaid Funeral Benefits

Sec. 154.204.  CONVERSION FROM TRUST-FUNDED PREPAID FUNERAL BENEFITS.  (a)  The department must approve a conversion from trust-funded prepaid funeral benefits to insurance-funded prepaid funeral benefits as safeguarding the rights and interests of the individual who purchases the prepaid funeral benefits contract.
(b)  Each contract holder shall be notified in writing of:
(1)  the terms of the proposed conversion;  and
(2)  the holder's right to decline the conversion.
(c)  An application for approval of a conversion from trust-funded prepaid funeral benefits to insurance-funded prepaid funeral benefits must be:
(1)  filed with the department on forms prescribed by the department;  and
(2)  accompanied by a conversion application fee set by the department under Section 154.051.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 154 - Prepaid Funeral Services › Subchapter E. Insurance-Funded Prepaid Funeral Benefits › Section 154.205. Cancellation of Insurance-Funded Contract

Sec. 154.205.  CANCELLATION OF INSURANCE-FUNDED CONTRACT.  (a)  A purchaser of an insurance-funded prepaid funeral benefits contract may cancel the contract before maturity by giving written notice of cancellation to the permit holder.  The permit holder shall maintain copies of the written notice of cancellation until the third anniversary of the date of receipt of notice.
(b)  Cancellation of the contract under Subsection (a) does not automatically cancel the insurance policy funding the prepaid funeral benefits contract.  The insurance policy may be canceled in accordance with the terms and conditions of the policy in exchange for the policy's cash surrender value.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 1190 (H.B. 3762), Sec. 18, eff. September 1, 2009.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 154 - Prepaid Funeral Services › Subchapter E. Insurance-Funded Prepaid Funeral Benefits › Section 154.206. Assignment of Right to Benefits

Sec. 154.206.  ASSIGNMENT OF RIGHT TO BENEFITS.  (a)  The purchaser of an insurance-funded contract may assign the purchaser's ownership of and rights to benefits under the insurance policy to the seller, the funeral provider, the trustee, or other person.
(b)  An assignment to the seller, the funeral provider, or an affiliated trustee may not be made irrevocable unless:
(1)  the assignment is made solely to facilitate the eligibility of the purchaser under Title XIX, Social Security Act (42 U.S.C. Section 1396 et seq.), or other law providing for a public assistance program; or
(2)  the assignee is specifically prohibited from exercising any right under the policy except administration of the benefits.
(c)  An assignee under this section is subject to a fiduciary duty to apply the insurance policy benefits as provided by the contract and this chapter.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 1190 (H.B. 3762), Sec. 19, eff. September 1, 2009.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 154 - Prepaid Funeral Services › Subchapter E. Insurance-Funded Prepaid Funeral Benefits › Section 154.207. Receipt of Benefits Payable Under Policy

Sec. 154.207.  RECEIPT OF BENEFITS PAYABLE UNDER POLICY.  (a)  A seller or funeral provider that has been assigned the benefits payable under an insurance policy funding prepaid funeral benefits may not receive payment of the benefits until:
(1)  the beneficiary named in the contract dies;
(2)  the funeral service is completed;
(3)  the funeral provider has completed the provider's obligations under Section 154.161(a) with respect to the contract; and
(4)  the insurance company is presented with:
(A)  certification from the funeral provider attesting to matters required by Subdivisions (2) and (3); and
(B)  other documents as required by the insurance company to process and pay the claim.
(b)  The seller shall maintain copies of the documentation submitted to the insurance company and a copy of the death certificate for examination by the department.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 1190 (H.B. 3762), Sec. 20, eff. September 1, 2009.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 154 - Prepaid Funeral Services › Subchapter E. Insurance-Funded Prepaid Funeral Benefits › Section 154.208. Advisory Committee

Sec. 154.208.  ADVISORY COMMITTEE.  (a)  The commissioner shall appoint an advisory committee to review and make recommendations regarding the technical procedures and processes employed by the department to regulate insurance-funded prepaid funeral benefits and monitor compliance of sellers of insurance-funded contracts under this chapter, including recommendations relating to:
(1)  the relevance and usefulness of records that the department requires a seller to maintain for examination purposes;
(2)  the existence and identification of any specific record that an insurance company is required to maintain and produce under the Insurance Code that could be substituted as a record that meets the objectives and requirements of the department under this chapter;
(3)  the scope, efficiency, and effectiveness of examination procedures employed by the department to verify compliance with this chapter; and
(4)  any other matter submitted to the committee by the commissioner.
(b)  The advisory committee is composed of eight members appointed by the commissioner as follows:
(1)  two representatives of the department;
(2)  two representatives of funeral providers that actively sell and service insurance-funded contracts in this state; and
(3)  four representatives of permit holders that actively sell insurance-funded contracts in this state, provided that representation should be reasonably balanced to include permit holders that sell for domestic insurance companies, foreign insurance companies, small insurance companies, and large insurance companies.
(c)  At the request of the commissioner, the commissioner of insurance may appoint a representative of the Texas Department of Insurance to serve on the advisory committee.
(d)  Not later than the 30th day after the date all of the initial appointments to the advisory committee have been made, the advisory committee shall meet and select a presiding officer.  After the initial meeting, the advisory committee shall meet as necessary at the call of the commissioner.
(e)  A member of the advisory committee serves without compensation.  If authorized by the commissioner, a member of the advisory committee is entitled to reimbursement for reasonable expenses incurred in attending committee meetings.
(f)  A recommendation of the advisory committee does not supersede the regulatory authority of the commissioner or the rulemaking authority of the commission under this chapter.  The commissioner shall notify the commission of each recommendation of the advisory committee and the reasons for the recommendation.
Added by Acts 2009, 81st Leg., R.S., Ch. 1190 (H.B. 3762), Sec. 21, eff. September 1, 2009.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 154 - Prepaid Funeral Services › Subchapter F. Trust-Funded Prepaid Funeral Benefits › Section 154.251. Applicability

Sec. 154.251.  APPLICABILITY.  (a)  This subchapter applies only to money paid or collected on a trust-funded prepaid funeral benefits contract entered into after July 15, 1963.
(b)  Money paid or collected on a prepaid funeral benefits contract entered into before July 15, 1963, shall be handled in accordance with the law in effect on the date the contract was entered into.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 154 - Prepaid Funeral Services › Subchapter F. Trust-Funded Prepaid Funeral Benefits › Section 154.252. Retention of Money for Expenses

Sec. 154.252.  RETENTION OF MONEY FOR EXPENSES.  The seller of a trust-funded prepaid funeral benefits contract may retain for the seller's use and benefit an amount not to exceed one-half of all money collected or paid until the seller has received an amount equal to 10 percent of the total amount the purchaser agreed to pay under the contract.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.  Amended by Acts 2001, 77th Leg., ch. 699, Sec. 10, eff. Sept. 1, 2001.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 154 - Prepaid Funeral Services › Subchapter F. Trust-Funded Prepaid Funeral Benefits › Section 154.253. Deposit of Money Paid or Collected

Sec. 154.253.  DEPOSIT OF MONEY PAID OR COLLECTED.  (a)  Not later than the 30th day after the date of collection, the money, other than money retained as provided by Section 154.252, shall be deposited:
(1)  in a financial institution that has its main office or a branch in this state in an interest-bearing restricted account insured by the federal government; or
(2)  in trust with a financial institution that has its main office or a branch located in this state and is authorized to act as a fiduciary in this state, to be invested by the financial institution as trustee in accordance with this subchapter.
(b)  An account described by Subsection (a), including a trust account, shall be carried in the name of the funeral provider or other entity to whom the purchaser makes payment and must include the words "prepaid funeral benefits" or "pre-need funeral benefits."
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.  Amended by Acts 1999, 76th Leg., ch. 344, Sec. 2.024, eff. Sept. 1, 1999.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 39 (S.B. 297), Sec. 4, eff. September 1, 2013.