| (a) Contract requirements. The department must approve
a non-model contract before you can use it. Your proposed non-model
contract must:
(1) contain a disclosure informing the purchaser of
the funeral goods and services that will be provided under the contract,
as described by subsections (b) and (c) of this section;
(2) define terms used in the contract as described
by subsection (d) of this section;
(3) state and explain the purchaser's obligations,
your obligations, and the name and obligations of the provider if
you are not performing all funeral services under the contract;
(4) if the provider is not the licensed seller, a statement
that the provider agrees to discharge the responsibilities imposed
on a funeral provider by Finance Code §154.161;
(5) the impact of terms in the insurance policy on
the contract if the contract is insurance-funded, as described by
subsection (e) of this section;
(6) disclose and explain the purchaser's cancellation
rights under the contract and, if the contract is insurance-funded,
the effect of insurance policy cancellation or assignment on the contract,
as described by subsection (f) of this section;
(7) state events of default under the contract for
all parties and explain the consequences of default, as described
by subsection (g) of this section;
(8) state and explain the circumstances under which
the responsible person may modify or change the contract at the death
of the contract beneficiary, as described by subsection (h) of this
section;
(9) disclose and explain all payment terms under the
contract and related provisions as described by subsection (i) of
this section;
(10) contain a section for required signatures and
related notices as described by subsection (j) of this section;
(11) contain a standard disclosure explaining how a
purchaser can make inquiries or file complaints with specified regulatory
agencies, as described by subsection (k) of this section;
(12) comply with subsections (l) and (m) of this section;
(13) comply with §25.4 of this title (relating
to What Are the Plain Language Requirements for a Non-Model Contract
or Waiver); and
(14) be approved by the department as provided by §25.5
of this title (relating to How Do I Obtain Approval of a Non-Model
Contract or Waiver).
(b) Statement of guaranteed funeral goods and services
selected. The first section of a proposed prepaid funeral benefits
contract must inform the purchaser of the guaranteed funeral goods
and services that you will provide under the contract, as required
by Finance Code, §154.151(e). This section must appear entirely
on page one of the contract exactly as set out in the model contract
and in the following figure, including substantially the same formatting
and spacing, except:
Attached Graphic
(1) you may move specific goods and services between
general description categories;
(2) you may move specific goods and services from figure
7 TAC §25.3(c)(1) to figure 7 TAC §25.3(b), if you guarantee
the price of the good or service and include any required Federal
Trade Commission disclosures regarding cash advance items;
(3) you may change the description of specific goods
or services if the alteration does not change the intent of the description
in the standard disclosure;
(4) you may add other, specific funeral goods and services
to the list of funeral goods and services to be provided;
(5) you may delete check boxes and related text for
sealing features in casket and outer burial container descriptions,
for example, "gasketed", "non-gasketed", "seal", and "non-seal", if
these features are not included in the funeral home's price list;
and
(6) if the goods and services you sell are specifically
limited and constitute significantly less than those goods and services
normally required for a funeral, you may substitute a simplified disclosure
that the contract is for your specific goods and services only and
that you do not offer any other funeral goods and services. For example,
you may substitute this limited disclosure if you sell only services
relating to opening and closing of the grave or unique memorials that
utilize a token portion of cremains, or if you only sell limited funeral
goods such as outer burial containers or caskets without furnishing
funeral services.
(7) The Explanation of Certain Charges language may
be moved from figure 7 TAC §25.3(c)(1) to figure 7 TAC §25.3(b).
(8) If your contract is in electronic form, the statement
of guaranteed funeral goods and services selected must appear on a
single screen or consecutive screens, near the beginning or top of
the contract, immediately following consumer disclosures and consent
required by 7 TAC §25.2(f).
(c) Statement of non-guaranteed cash advance items
selected.
(1) The second section of a proposed prepaid funeral
benefits contract must inform the purchaser of the non-guaranteed
cash advance items that you will provide under the contract, as required
by Finance Code, §154.1511(b). The section must appear entirely
on either page one or two of the contract exactly as set out in the
model contract and in the following figure, including substantially
the same formatting and spacing, except;
Attached Graphic
(A) you may delete the non-guaranteed cash advance
items section if you do not sell cash advance items;
(B) you may move the Explanation of Certain Charges
language to figure 7 TAC §25.3(b);
(C) you may change the subtotal pages references if
figures 7 TAC §25.3(b) and 7 TAC §25.3(c)(1) are to be placed
on the same page of the contract;
(D) you may move specific goods and services from figure
7 TAC §25.3(c)(1) to figure 7 TAC §25.3(b) if you guarantee
the price of the good or service;
(E) you may change the description of specific goods
or services if the alteration does not change the intent of the description
in the standard disclosure;
(F) you may add other specific funeral goods and services
to the list of non-guaranteed funeral goods and services to be provided
only through a non-model filing; and
(G) if your contract is in electronic form, this section
must appear on a single screen immediately following the statement
of guaranteed funeral goods and services selected.
(2) If you delete the statement of non-guaranteed cash
advance items:
(A) for a paper contract, you must include figure 7
TAC §25.3(c)(2)(B) on the bottom of page one of the contract,
including substantially the same formatting and spacing; and
(B) for a contract in electronic form, you must include
the following figure immediately following the statement of guaranteed
funeral goods and services selected:
Attached Graphic
(d) Definitions. Your proposed prepaid funeral benefits
contract must list, define, and use the terms "contract beneficiary",
"responsible person", "provider", "purchaser", and "seller", or terms
commonly understood by consumers to be equivalent, substantially as
defined in a model contract. For example, you may use a combined term
such as "seller/provider" if you believe the alternate term is more
descriptive of your services. If your proposed contract is insurance-funded,
you must also list, define, and use the terms "insurance company",
"insurance policy", and "premiums" in the contract, or terms commonly
understood by consumers to be equivalent, substantially as defined
in the department's insurance-funded model contract. You may list,
define and use additional terms if they are consistent with the requirements
of §25.4 of this title.
(e) General provisions. Your proposed prepaid funeral
benefits contract must recognize and explain the purchaser's obligations,
your obligations, and the obligations of the provider if you are not
performing all funeral services under the contract, and the impact
of terms in the insurance policy on the contract if the contract is
insurance-funded, with respect to:
(1) your obligation (and that of the provider) to furnish
the guaranteed funeral goods and services selected in the contract
for a cost not to exceed the total contract price applicable to the
guaranteed charges at the death of the contract beneficiary, if the
purchaser has fully complied with the contract and with each insurance
policy, if the contract is insurance-funded;
(2) your obligation (and that of the provider) to furnish
the non-guaranteed cash advance items selected in the contract, if
current costs are paid at the time of death or how any unallocated
and remaining non-guaranteed funds will be refunded;
Cont'd... |
