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Texas Finance Code - Chapter 154 Prepaid Funeral Services

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  • Texas Finance Code Section 154.001 - Purpose
    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 ...
  • Texas Finance Code Section 154.002 - Definitions
    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 ...
  • Texas Finance Code Section 154.003 - Effect On Insurance Laws
    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, ...
  • Texas Finance Code Section 154.004 - Group Insurance Contracts
    (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 ...
  • Texas Finance Code Section 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; ...
  • Texas Finance Code Section 154.052 - Annual Report
    (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 ...
  • Texas Finance Code Section 154.053 - Records; Examination
    (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 ...
  • Texas Finance Code Section 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 ...
  • Texas Finance Code Section 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, ...
  • Texas Finance Code Section 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, § 1, eff. ...
  • Texas Finance Code Section 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 ...
  • Texas Finance Code Section 154.102 - Permit Application; Fee
    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 ...
  • Texas Finance Code Section 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 ...
  • Texas Finance Code Section 154.104 - Term Of Permit
    (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 ...
  • Texas Finance Code Section 154.105 - Prohibition On Transfer Of Permit
    A permit is not transferable. Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997. ...
  • Texas Finance Code Section 154.106 - Transfer Of Business Ownership
    (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 ...
  • Texas Finance Code Section 154.107 - Required Renewal For Certain Sellers
    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. ...
  • Texas Finance Code Section 154.108 - Renewal Fee
    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 ...
  • Texas Finance Code Section 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: ...
  • Texas Finance Code Section 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 ...
  • Texas Finance Code Section 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 ...
  • Texas Finance Code Section 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 ...
  • Texas Finance Code Section 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 ...
  • Texas Finance Code Section 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 ...
  • Texas Finance Code Section 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 ...
  • Texas Finance Code Section 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 ...
  • Texas Finance Code Section 154.1551 - Modification At Time Of Funeral
    (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 ...
  • Texas Finance Code Section 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 ...
  • Texas Finance Code Section 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, ...
  • Texas Finance Code Section 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 ...
  • Texas Finance Code Section 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., ...
  • Texas Finance Code Section 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 ...
  • Texas Finance Code Section 154.201 - Requirements For Solicitation Of Benefits
    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 ...
  • Texas Finance Code Section 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., ...
  • Texas Finance Code Section 154.203 - Payment Of Premiums
    (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 ...
  • Texas Finance Code Section 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 ...
  • Texas Finance Code Section 154.205 - Amount Payable On Cancellation Of Contract
    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 ...
  • Texas Finance Code Section 154.206 - Assignment Of Right To Benefits
    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 ...
  • Texas Finance Code Section 154.207 - Withdrawal Of Benefits Payable Under Policy
    (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 ...
  • Texas Finance Code Section 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 ...
  • Texas Finance Code Section 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 ...
  • Texas Finance Code Section 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 ...
  • Texas Finance Code Section 154.254 - Amount Payable On Cancellation Of Contract
    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 ...
  • Texas Finance Code Section 154.255 - Standard Of Duty Of Depository
    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. ...
  • Texas Finance Code Section 154.256 - Standard Of Care Of Trustee
    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 ...
  • Texas Finance Code Section 154.257 - Investment Plan
    (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 ...
  • Texas Finance Code Section 154.258 - Permitted Investments
    (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 ...
  • Texas Finance Code Section 154.259 - Disposal Of Nonconforming Investments
    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 ...
  • Texas Finance Code Section 154.260 - Use Of Money To Purchase, Lease, Or Invest In Asset Owned By Seller Or Funeral Provider
    (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 ...
  • Texas Finance Code Section 154.261 - Withdrawal Of Earnings To Pay Certain Expenses
    (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) ...
  • Texas Finance Code Section 154.262 - Withdrawal Of Money On Death Of Beneficiary
    (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 ...
  • Texas Finance Code Section 154.263 - Withdrawal Of Earnings Attributable To Contract
    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 ...
  • Texas Finance Code Section 154.264 - Accounting Records
    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. ...
  • Texas Finance Code Section 154.301 - Presumption Of Abandonment
    (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 ...
  • Texas Finance Code Section 154.302 - Notice Of Abandoned Money
    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 ...
  • Texas Finance Code Section 154.303 - Authorization To Withdraw Money
    (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 ...
  • Texas Finance Code Section 154.304 - Delivery To Comptroller Of Abandoned Money And Report
    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 ...
  • Texas Finance Code Section 154.305 - Discharge Of Contractual Obligations; Indemnity Of Seller
    (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 ...
  • Texas Finance Code Section 154.306 - Liability And Obligations Of Comptroller
    (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 ...
  • Texas Finance Code Section 154.307 - Recourse Of Purchaser Or Beneficiary
    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 ...
  • Texas Finance Code Section 154.351 - Maintenance Of Guaranty Fund
    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 ...
  • Texas Finance Code Section 154.352 - Assessment On Sales Contracts
    (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 ...
  • Texas Finance Code Section 154.353 - Deposit Of Fund
    (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 ...
  • Texas Finance Code Section 154.354 - Use Of Fund Earnings
    The department may use the earnings from the fund to operate and maintain the fund. Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. ...
  • Texas Finance Code Section 154.355 - Advisory Council
    (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; ...
  • Texas Finance Code Section 154.356 - Assessment On Outstanding Contracts To Pay Claims
    (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 ...
  • Texas Finance Code Section 154.357 - Claim Against Seller Or Depository
    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 ...
  • Texas Finance Code Section 154.401 - Criminal Penalty For Certain Violations Of Chapter
    (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 ...
  • Texas Finance Code Section 154.402 - Criminal Penalty Relating To Deposit Or Withdrawal Of Money
    (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 ...
  • Texas Finance Code Section 154.403 - Criminal Penalty For Failure To File Report
    (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 ...
  • Texas Finance Code Section 154.404 - Criminal Penalty For Failure To Deliver Money To Designated Agent
    (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 ...
  • Texas Finance Code Section 154.405 - Criminal Penalty For Agent's Failure To Deposit Certain Money
    (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 ...
  • Texas Finance Code Section 154.406 - Administrative Penalty
    (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 ...
  • Texas Finance Code Section 154.4061 - Pattern Of Wilful Disregard
    (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 ...
  • Texas Finance Code Section 154.407 - Injunctive Relief
    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 ...
  • Texas Finance Code Section 154.408 - Cease And Desist Order
    (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 ...
  • Texas Finance Code Section 154.409 - Suit By Attorney General
    (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 ...
  • Texas Finance Code Section 154.410 - Quo Warranto Proceedings
    (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 ...
  • Texas Finance Code Section 154.411 - Restitution
    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) ...
  • Texas Finance Code Section 154.412 - Seizure Of Prepaid Funeral Money And Records
    (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 ...
  • Texas Finance Code Section 154.413 - Notification Of Purchaser
    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 ...
  • Texas Finance Code Section 154.414 - Liquidation Of Business And Affairs Of Person Following Seizure Of Money And Records
    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