(a) Authority. Finance Code, §154.151(a), requires
the department to approve a prepaid funeral benefits contract form
before you use the form. Finance Code, §154.156(a), requires
the department to approve a waiver of cancellation rights form in
the same manner. You may use the department's model contracts or model
waiver as provided in §25.2(a) of this title (relating to Am
I Required to Use the Model Contract and Model Waiver). This section
describes:
(1) how to apply to the department for approval of
your proposed non-model contract, what information, documents, and
fees you must file as part of your application before the department
will accept it for filing, and what fees the department may impose,
in subsection (b) of this section;
(2) what procedures the department will follow to approve
or deny approval of your proposed non-model document and when you
may reasonably expect the department to decide, in subsection (c)
of this section;
(3) what actions you must take to obtain a second review
by the department or a hearing before the commissioner if the department
denies approval of your proposed non-model document, in subsection
(d) of this section;
(4) how you may request a hearing before the commissioner,
how the hearing will be conducted, and what the staff of the department
must prove to uphold the disapproval, in subsection (e) of this section;
and
(5) when you may no longer use an approved contract
form, in subsection (f) of this section.
(b) Application for approval. Your application for
approval of your proposed non-model document must be in writing and
include all additional information, documents, and fees required by
this subsection. You should file your application as far in advance
of the date you intend to use your proposed document as possible.
(1) The additional information, documents, and fees
that you must file as part of your application include:
(A) both a printed copy of your proposed non-model
document and an electronic version of the document, prepared using
Microsoft Word or Corel WordPerfect software, including computer screenshots
of any portion to be used in electronic form;
(B) except as provided in §25.2(d) of this title,
an English translation if the proposed non-model document is in Spanish
and a certification from a translation service acceptable to the department
that the filed English version is a true and correct translation of
the proposed Spanish non-model document filed for approval;
(C) if your application is for approval of amendments
to a previously approved non-model document:
(i) a printed copy of the proposed non-model document
that is specifically marked to show all text proposed to be added
and all text proposed to be deleted; and
(ii) a written summary of the amendments, both additions
and deletions, explaining their purpose;
(D) a certification on a form supplied by the department,
signed and acknowledged by you or your authorized agent, that you
have reviewed the proposed non-model document that you filed for approval
and to the best of your knowledge:
(i) your proposed non-model document complies with
all applicable state and federal law, including Finance Code, Chapter
154, and this chapter;
(ii) if in electronic form, your proposed non-model
document also complies with Business and Commerce Code, Chapter 322,
and Electronic Signatures in Global and National Commerce Act, 15
U.S.C., §7001 et seq; and
(iii) if your application is for approval of amendments
to a previously approved non-model document, the proposed non-model
document is identical to the previously approved document except for
text specifically marked as additions and deletions;
(E) unless you notify the department that it already
has a copy on file:
(i) a copy of all related contracts and agreements
that are part of your prepaid funeral arrangement, such as a separate
finance charge agreement; and
(ii) if the proposed non-model document is an insurance-funded
contract, a copy of the insurance policy form you intend to use and
written evidence from the Texas Department of Insurance that the insurance
policy has been approved for use in conjunction with the sale of prepaid
funeral benefits; and
(F) payment of a $250 filing fee, except that upon
request the department may waive or reduce the fee for review of minor
amendments to a previously approved non-model document that are submitted
under subparagraph (C) of this paragraph.
(2) Your application is considered accepted for filing
and eligible for consideration if the application is substantially
complete with all information, documents, and fees required by paragraph
(1) of this subsection. At your request, the department will inform
you in writing of the date it considers your application accepted
for filing.
(3) If the department's review of a non-model document
takes longer than four employee hours, you must pay a review fee of
$60 per employee hour in excess of four hours. If you fail to pay
review fees on or before the 10th day after you receive a written
statement of charges due from the department, the department may exercise
its discretion to conclude that you have withdrawn your application.
(c) Review process. This subsection describes when
you may reasonably expect the department to approve or deny approval
of your proposed non-model document and the procedure the department
will follow in making its initial decision.
(1) The time the department's decision is due regarding
your proposed non-model document will vary depending upon the date
your application is accepted for filing under subsection (b)(2) of
this section and on the nature of the document you seek to have approved.
(A) If your proposed non-model contract filing is the
result of legislative amendments to Finance Code Chapter 154 effective
on or after September 1, 2009, your non-model contract filing will
be considered a new contract filing and the department will approve
or deny approval on or before the 45th day after the date your application
is accepted for filing.
(B) If your proposed non-model document is a non-model
waiver or an amended version of a non-model contract previously approved
by the department under this section, the department will approve
or deny approval on or before the 30th day after the date your application
is accepted for filing, except the department will either approve
or deny approval on or before the 10th day after the date your application
is accepted for filing if the proposed amendments are limited to changed
or added information about you or a funeral home.
(2) The department may extend the date its decision
is due under this subsection by up to an additional 30 days if it
determines that your application raises issues requiring additional
information or additional time for analysis. The department may request
additional information from you in writing if the information is reasonably
necessary for an informed decision to approve or deny approval of
your proposed non-model document. If you receive a written request
for additional information, you must file the information or a satisfactory
written explanation of when the information can be filed with the
department on or before the 30th day after the date you receive the
request. If you fail to reply within this time period the department
may exercise its discretion to conclude that you have withdrawn your
application.
(3) The department will approve your proposed non-model
document unless a specific basis exists to deny approval. The department
will deny approval if your proposed non-model document fails to comply
with the standards of this subchapter that apply. If the department
discovers and confirms that use of the proposed non-model document
will clearly violate a mandatory requirement of an applicable state
or federal law other than Finance Code, Chapter 154, and this chapter,
the department will deny approval. However, the department will ordinarily
not review a proposed non-model document for compliance with other
law, and approval of a non-model document under this section does
not mean the department has determined that the non-model document
complies with any state and federal law other than Finance Code, Chapter
154, and this chapter.
(4) If the department denies approval of your proposed
non-model document, the department will send you a written notice
of denial that:
(A) states the specific basis for the denial in writing
and cites the specific provisions of law that the document does not
satisfy;
(B) informs you that, on or before the 30th day after
the date you receive the notice of denial, you must exercise your
rights under subsection (d) of this section, to file either a written
request for hearing or a revised non-model document for second review,
or the denial will become final.
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