Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 2 - TEXAS DEPARTMENT OF BANKING › Chapter 25 - PREPAID FUNERAL CONTRACTS › Subchapter A - CONTRACT FORMS › Section 25.1 - Definitions

Current through Reg. 49, No. 28; July 12, 2024
(a) A word or term
				  that is defined in Finance Code, Chapter 154, retains the same meaning when
				  used in this subchapter unless the word or term is defined otherwise in
				  subsection (b) of this section.
(b)
				  The following words and terms have the following meanings when used in this
				  subchapter, unless the context in which a word or term is used clearly
				  indicates a different meaning that is consistent with the purpose of Finance
				  Code, Chapter 154:
(1) "Contract beneficiary"
				  means the person named in a prepaid funeral benefits contract as the intended
				  recipient of contracted funeral merchandise and services.
(2) "Funeral goods and services" means
				  funeral merchandise and services that are regulated as prepaid funeral
				  benefits, as that term is defined by Finance Code, § 154.002(9), except to
				  the extent provided otherwise in §
											RSA
				  25.3(b) of this title
				  (relating to What Requirements Apply to a Non-Model Contract or Waiver) and
				  related provisions.
(3) "Funeral
				  Provider" or "Provider" has the meaning assigned by Finance Code, §
				  154.002(6), specifically a person that agrees in a prepaid funeral benefits
				  contract to provide specified prepaid funeral benefits.
(4) "Insurance-funded contract" means a
				  prepaid funeral benefits contract funded by an insurance policy.
(5) "Insurance policy" has the meaning
				  assigned by Finance Code, § 154.002(7), specifically a life insurance
				  policy or an annuity contract. The term does not include a policy for any other
				  form of insurance.
(6) "Model
				  contract" means a prepaid funeral benefits contract form developed and
				  published by the department for your use.
(7) "Model waiver" means the waiver form
				  developed and published by the department for your use, to govern the voluntary
				  waiver of a purchaser's right to cancel a prepaid funeral benefits contract as
				  permitted by Finance Code, § 154.156(a).
(8) "Non-guaranteed cash advance items" are
				  items for which a purchaser of prepaid funeral benefits may agree to advance
				  funds for all or any portion of the reasonable estimated cost of the items
				  included in the 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 by a Third Party Provider in connection with at-need performance of
				  the contracted funeral.
(9)
				  "Non-model contract" means a prepaid funeral benefits contract form that
				  differs from the model contract with respect to the requirements and standards
				  of §
											RSA
				  25.3 of this title and §
											RSA
				  25.4 of this title (relating to What Are the
				  Plain Language Requirements for a Non-Model Contract or Waiver). A model
				  contract does not become a non-model contract because you add your name,
				  trademark, or other information about you, or information about the provider. A
				  contract in electronic form is a non-model contract.
(10) "Non-model waiver" means a form of
				  waiver that has the same purpose as but differs from the model waiver with
				  respect to the requirements and standards of §
											RSA
				  25.2(c) of this title
				  (relating to Am I Required to Use the Model Contract and Model Waiver) and
				  §
											RSA
				  25.4 of this title. For example, a model
				  waiver does not become a non-model waiver because you add your name, trademark,
				  or other information about you, or information about the provider. A waiver in
				  electronic form is a non-model waiver.
(11) "Prepaid funeral benefits contract" or
				  "contract" means a contract or agreement for prepaid funeral benefits, whether
				  trust-funded or insurance-funded.
(12) "Purchaser" means the person who
				  contracts to buy prepaid funeral benefits. The purchaser may also be the
				  contract beneficiary. If permitted by the context, the term includes the
				  purchaser's authorized agent.
(13)
				  "Responsible person" means the person charged with the disposition of the
				  contract beneficiary's remains by Health and Safety Code, §
				  711.002(a).
(14) "Seller" has the
				  meaning assigned by Finance Code, § 154.002(10), specifically a person
				  selling, accepting money or premiums for, or soliciting contracts for prepaid
				  funeral benefits or contracts or insurance policies to fund prepaid funeral
				  benefits in this state.
(15) "Third
				  Party Provider" means a legal entity that is separate from the Funeral Provider
				  and which will provide non-guaranteed cash advance items under a prepaid
				  funeral benefits contract. Separate legal entities have different federal tax
				  identification numbers but may be related by common ownership or be
				  subsidiaries or affiliates of one another.
(16) "Trust-funded contract" means a prepaid
				  funeral benefits contract funded by trust deposits made on behalf of the
				  purchaser.
(17) "You" (or "I" in a
				  section title) means a seller that is licensed under Finance Code, Chapter 154,
				  and is subject to this chapter.