| (E) notice and acknowledgement by the purchaser if
you initially issue insurance policy(s) with an aggregate initial
face value that exceed(s) the total contract price by more than 5%.
The disclosure must include the total amount of the policy(s) in excess
of 100% of the contract price. The disclosure must appear in the payment
terms section exactly as set out in the following figure, without
modification, including substantially the same formatting and spacing;
and,
Attached Graphic
(5) other contract provisions that materially relate
to payment terms under a contract or under an insurance policy.
(j) Required signatures and notices. Your proposed
prepaid funeral benefits contract must contain a section for required
signatures and related notices that appears in its entirety on the
last page of the contract, or near the bottom of the contract if in
electronic form. This section must include:
(1) a list of all items that must be received or offered
before the contract can be signed;
(2) if required by state or federal law, cooling-off
period language that includes spaces to note when and where the contract
was signed;
(3) notice that the purchaser will receive a copy of
the contract;
(4) notice that the purchaser is required to be provided
an informational brochure for contracts sold after June 1, 2010;
(5) the Department's prepaid funeral contract informational
website address;
(6) if the contract is insurance-funded:
(A) notice that the policy owner will receive a copy
of the insurance policy from the insurance company; or
(B) if the insurance company is not legally required
to deliver a copy of the insurance policy to the policy owner, notice
that the policy owner may request a copy of the insurance policy from
the insurance company;
(7) spaces for:
(A) the purchaser's printed name, mailing address,
telephone number, social security number (if required), and signature
line;
(B) if you are not directly providing the funeral goods
and services, the printed name, mailing address, and telephone number
of the provider, and spaces for the printed name and signature of
the authorized officer or agent signing on behalf of the provider;
(C) your printed name, mailing address, and telephone
number, and spaces for the printed name and signature of the authorized
officer or agent signing on your behalf; and
(D) the printed name, mailing address, and date of
birth of the sole individual designated as contract beneficiary; and
(8) other provisions, party identifications, or certifications
legally required for valid execution of the contract.
(k) Inquiries and complaints notice. Your proposed
prepaid funeral benefits contract must disclose how a purchaser, potential
purchaser or consumer can make consumer inquiries and complaints to
the department as required by Finance Code, §11.307(a), and §25.41
of this title (relating to How Do I Provide Information to Consumers
on How to File a Complaint and What Action Must I Take When I Receive
a Complaint?), and to other specified state regulatory agencies with
appropriate jurisdiction.
(1) This disclosure must appear exactly as set out
in the relevant model contract, including the names and contact information
for each regulatory agency, without modification, and will vary in
context depending on whether the proposed contract is trust-funded
or insurance-funded. The model disclosures for both trust-funded and
insurance-funded contracts appear in:
Attached Graphic
(2) If the disclosure does not appear at the bottom
of the last page of the contract following the signatures of the parties,
it must be placed at the top or bottom of a preceding page and be
separated from other contract text by at least 1/2 inches of white
space. If the contract is in electronic form, the disclosure must
appear immediately preceding the area a purchaser can sign the contract.
The disclosure may not be placed on a page by itself.
(l) Additional requirements. A proposed prepaid funeral
benefits contract must also contain:
(1) page numbers, unless in an electronic form that
does not contain pages;
(2) a document title that discloses the contract is
for the purpose of prearranging a funeral, such as "Prepaid Funeral
Benefits Contract";
(3) a distinguishing form number or name;
(4) your permit number; and
(5) a space for the contract number on at least one
of the contract pages.
(m) Your proposed non-model contract or waiver form
may contain:
(1) additional contract clauses that are fair to consumers
in light of the purpose of Finance Code, Chapter 154; and
(2) additional consumer disclosures that you determine:
(A) will assist the purchaser in understanding the
transaction; or
(B) are required by other state or federal law for
the type of transaction the contract represents.
(n) Electronic contract requirements. A proposed non-model
contract in electronic form must contain all consumer disclosures
required under Electronic Signatures in Global and National Commerce
Act, 15 U.S.C., §7001, before any other provision and may be
on a separate screen.
|
| Source Note: The provisions of this §25.3 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 8, 2010, 35 TexReg 5803; amended to be effective November 4, 2010, 35 TexReg 9696; amended to be effective September 8, 2011, 36 TexReg 5668; amended to be effective January 5, 2012, 36 TexReg 9284; amended to be effective November 10, 2016, 41 TexReg 8814 |
