| (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 §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 §25.3 of this title and §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 §25.2(c) of this title (relating
to Am I Required to Use the Model Contract and Model Waiver) and §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.
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| Source Note: The provisions of this §25.1 adopted to be effective March 14, 2002, 27 TexReg 1706; amended to be effective January 7, 2010 35 TexReg 204; amended to be effective July 10, 2014, 39 TexReg 5141; amended to be effective November 10, 2016, 41 TexReg 8814 |
