| (a) Use of model contract and waiver. You may use the
appropriate model contract or the model waiver described in this subsection
except as provided in paragraph (2) of this subsection, but you are
not required to do so if you obtain approval to use a non-model contract
or waiver. PDF forms of model contracts or waivers and PDF forms of
approved non-model contracts or waivers do not need to be approved
by the department as provided in §25.5.
(1) The Department has adopted two model contracts,
one for sale of trust-funded prepaid funeral benefits and one for
sale of insurance-funded prepaid funeral benefits where the purchaser
is also the policy owner, and a model waiver, in English and in Spanish,
for your use. Each model contract or waiver meets all statutory requirements
and the requirements of this subchapter with respect to the type of
transaction it is designed to govern. You may acquire copies of model
contracts and the model waiver by downloading them from the Department's
web site or requesting them by mail. The Department's web site address
is http://www.dob.texas.gov.
(2) If you sell insurance-funded contracts, the insurance-funded
model contract is suitable only if the person named in the contract
as the purchaser is also the insurance policy owner. If the contract
purchaser and the insurance policy owner are not to be the same person,
you must use an approved non-model contract that correctly addresses
this arrangement.
(3) You may use a current model contract or model waiver
after the department verifies that your proposed form document is
a current model document that has been customized by inserting your
name and permit number. Your submitted form document may also exclude
the disclosure shown in Figure 7 TAC §25.3(i)(4)(E), if it is
not applicable; and contain other information about you or a provider
as long as you do not otherwise alter the model document. The department
shall approve or disapprove a customized model document on or before
the 10th business day following the day the document is filed with
the department.
(b) Non-model contracts. Before you use a non-model
contract, it must:
(1) satisfy the substantive content requirements of §25.3
of this title (relating to What Requirements Apply to a Non-Model
Contract or Waiver);
(2) qualify under the plain language principles stated
in §25.4 of this title (relating to What Are the Plain Language
Requirements for a Non-Model Contract or Waiver); and
(3) be approved by the department as provided in §25.5
of this title (relating to How Do I Obtain Approval of a Non-Model
Contract or Waiver).
(c) Non-model waivers. You may use a non-model waiver
if it addresses substantially the same matters in substantially the
same order as the model waiver, to promote comparability and consumer
understanding. Your proposed non-model waiver form may contain additional
provisions that are fair to consumers in light of the purpose of Finance
Code, Chapter 154. You must submit a non-model waiver to the Department
for approval in the manner required by §25.5 of this title. The
model waiver in English appears as:
Attached Graphic
(d) Transactions conducted in Spanish. If you intend
to conduct any prepaid funeral benefits transaction predominately
in Spanish, you may use a current model contract or model waiver in
Spanish as provided by subsection (a) of this section. If the department
has approved your non-model document in English under §25.5 of
this title, you may use a Spanish version of the document after you
file a copy of your Spanish document and a certification from a translation
service acceptable to the department that the Spanish version is a
true and correct translation of the submitted English document. If
the English version of your Spanish non-model document has not previously
been approved, you may not use your Spanish non-model document until
you comply with subsection (b) of this section.
(e) Interpretation of required content and form. The
department considers the model contracts and model waiver to satisfy
the substantive content requirements of §25.3 of this title and
qualify under the plain language principles stated in §25.4 of
this title. If you have questions regarding the intent and meaning
of a requirement in this subchapter, locate and review the related
clause in the model contracts or model waiver. You are not required
to include a broader or more comprehensive provision than is contained
in the relevant model document unless additional explanation or disclosure
is necessary to clarify or prevent misleading provisions in your non-model
document.
(f) Sale of Prepaid Funeral Benefits Electronically.
(1) You may sell prepaid funeral benefits and deliver
contracts and waivers by electronic means if the purchaser has consented
to transacting electronically.
(2) A purchaser must consent to the use of electronic
documents before you present the document to the purchaser, consistent
with Electronic Signatures in Global and National Commerce Act, 15
U.S.C. §7001.
(3) A contract or waiver is not considered as entered
into or delivered electronically if a completed paper copy in the
approved form is given to the purchaser at the time of sale.
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| Source Note: The provisions of this §25.2 adopted to be effective March 14, 2002, 27 TexReg 1706; amended to be effective January 7, 2010 35 TexReg 204; amended to be effective November 4, 2010, 35 TexReg 9696; amended to be effective November 10, 2016, 41 TexReg 8814 |
