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

(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.