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Texas Finance Code - Chapter 154 Prepaid Funeral ServicesLegal Research Home > Texas Lawyer > Finance Code > Texas Finance Code - Chapter 154 Prepaid Funeral Services The purposes of this chapter are to: (1) limit the manner in which a person may accept funds in prepayment of funeral services to be ... In this chapter: (1) "Commission" means the Finance Commission of Texas. (2) "Commissioner" means the banking commissioner of Texas. (3) "Department" means the Texas Department ... Except as provided by Section 154.004, this chapter does not affect the Insurance Code. Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, ... (a) A life insurance company authorized to engage in the business of life insurance in this state may issue a group contract of decreasing term ... (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; ... (a) The department may require a permit holder to submit an annual report in the form required by the department. (b) The department shall require ... (a) A seller that has outstanding contracts for prepaid funeral benefits shall maintain in this state any record required by the department to determine whether ... (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 ... (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, ... The department shall pay money received under a restitution order to the injured party as ordered. Acts 1997, 75th Leg., ch. 1008, § 1, eff. ... 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 ... To obtain a permit to sell or continue to sell prepaid funeral benefits, a person must: (1) file an application for a permit with the ... (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 ... (a) A permit is issued for a one-year term. (b) The commission by rule may adopt a system under which permits expire on various dates ... A permit is not transferable. Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997. ... (a) A permit holder shall notify by registered mail the department and the depository of the money held under Subchapter F of a transfer in ... A seller that discontinues the sale of prepaid funeral benefits but has outstanding contracts shall renew the seller's permit until the contracts are fully discharged. ... The commission shall set the renewal fee under Section 154.051. Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997. Amended by Acts ... (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: ... (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 ... (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 ... (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 ... 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 ... 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 ... 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 ... (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 ... (a) The funeral merchandise and services to be provided by the seller under a fully paid prepaid funeral benefits contract may be modified after the ... (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 ... 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, ... 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 ... 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., ... (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 ... A seller may not solicit an individual's designation of prepaid funeral benefits to be paid from a fund, investment, security, or contract, including an insurance ... 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., ... (a) A seller shall remit to the insurance company the premiums collected for an insurance policy that funds prepaid funeral benefits not later than the ... (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 ... A purchaser of an insurance-funded prepaid funeral benefits contract who cancels the contract during the first year of the contract when payments required under the ... The purchaser of an insurance-funded prepaid funeral benefits contract may irrevocably assign the purchaser's ownership of and rights to benefits under the insurance policy to ... (a) The seller or funeral provider may withdraw the benefits payable under an insurance policy funding prepaid funeral benefits after: (1) the beneficiary named in ... (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 ... 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 ... (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 ... A purchaser of a trust-funded prepaid funeral benefits contract who cancels the contract during the first year of the contract when payments required under the ... A depository shall be held to the standard of duty of a fiduciary in holding, investing, or disbursing the money. Acts 1997, 75th Leg., ch. ... A trustee, in administering assets held in a prepaid funeral benefits trust, shall exercise the judgment and care under the circumstances that a person of ... (a) A permit holder or trustee, if the permit holder deposits the money with a financial institution as trustee, shall: (1) adopt a written investment ... (a) Money in a prepaid funeral benefits trust may be invested only in: (1) demand deposits, savings accounts, certificates of deposit, or other accounts issued ... Before September 1, 1996, a permit holder or trustee shall dispose of any investment made before September 1, 1993, that does not comply with Sections ... (a) The depository of money under Section 154.253 must obtain the commissioner's prior written approval to use that money to purchase, lease, or invest in ... (a) The seller of a trust-funded prepaid funeral benefits contract may withdraw money from earnings on an account described by Section 154.253 to pay: (1) ... (a) The seller of a trust-funded prepaid funeral benefits contract may withdraw an amount equal to the original contract amount paid by the purchaser and ... On the maturity date of a trust-funded prepaid funeral benefits contract as provided by Section 154.262 and after the funeral provider has performed its obligations ... A seller shall maintain accounting records showing the amount deposited or invested under this subchapter with respect to each contract. Acts 1997, 75th Leg., ch. ... (a) Money paid by a purchaser of a prepaid funeral benefits contract is personal property subject to presumption of abandonment and delivery to the comptroller ... On June 30 of each year, a seller that holds money presumed abandoned under Section 154.301(b) shall furnish the commissioner with an acknowledged written notice ... (a) Not later than the 15th day after the date the notice required by Section 154.302 is received, the commissioner shall give the seller written ... Not later than the first November 1 after the date the commissioner receives the notice required by Section 154.302, the seller shall deliver to the ... (a) The delivery of abandoned money and reporting to the comptroller under Section 154.304: (1) relieves the seller of the obligations and liabilities under the ... (a) The comptroller is liable to the purchaser or beneficiary of a prepaid funeral benefits contract presumed abandoned under this subchapter only to the extent ... A purchaser's or beneficiary's sole recourse after a seller has delivered abandoned money and reported to the comptroller under Section 154.304 is to file a ... The commission by rule shall establish and the department shall maintain a fund to guarantee performance by sellers of prepaid funeral benefits contracts of their ... (a) The department shall assess and collect from a seller not more than $1 for each unmatured prepaid funeral benefits contract sold during each calendar ... (a) The fund may be deposited with: (1) the comptroller; (2) a federally insured financial institution that has its main office or a branch in ... The department may use the earnings from the fund to operate and maintain the fund. Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. ... (a) An advisory council composed of the following individuals shall supervise the operation and maintenance of the fund: (1) the commissioner or the commissioner's representative; ... (a) To pay a claim against the fund when the balance of the fund is insufficient to pay that claim, the advisory council may assess ... The department may assert a claim against a seller or depository that commits a violation of this chapter that could result in a claim against ... (a) Except as provided by Section 154.402, an officer, director, agent, or employee of a seller commits an offense if the person: (1) makes or ... (a) A person commits an offense if the person: (1) fails to deposit money in compliance with this chapter; or (2) withdraws money in a ... (a) An officer of a seller commits an offense if the officer fails or refuses to file an annual report required by Section 154.052 before ... (a) A seller or a person acting on behalf of a seller commits an offense if the seller or person: (1) collects money under a ... (a) A designated agent of a seller commits an offense if the agent fails to deposit money collected under a prepaid funeral benefits contract before ... (a) After notice and opportunity for hearing, the commissioner may impose an administrative penalty on a person who: (1) violates this chapter or a final ... (a) If, after a hearing conducted as provided by Chapter 2001, Government Code, the trier of fact finds that a violation of this chapter or ... The commissioner may sue in a district court in Travis County to enjoin a violation or threatened violation of: (1) this chapter; or (2) a ... (a) The commissioner may issue a cease and desist order to a person if the commissioner finds by examination or other credible evidence that the ... (a) The department may notify the attorney general of a violation of this chapter. (b) The attorney general shall institute suit in the name of ... (a) The attorney general may institute a quo warranto proceeding in a district court of Travis County to forfeit the charter or the right to ... The commissioner may issue an order to a person requiring restitution if, after notice and opportunity for hearing, the commissioner finds that the person: (1) ... (a) After the commissioner cancels or fails to renew a permit under Section 154.109(a) or on notice to a person required to obtain a permit ... Not later than the 30th day after the date prepaid funeral money is seized under Section 154.412, the commissioner may notify each known person who ... After an order issued under Section 154.412(a) becomes final and unappealable, the commissioner may petition the district court in the county in which a person ... Last modified: August 10, 2007 |