| (a) Fund established. Pursuant to Finance Code Chapter
154, Subchapter H, guaranty fund is established to guarantee performance
by sellers and providers of prepaid funeral services. The fund is
named the Prepaid Funeral Guaranty Fund, and is supervised by an advisory
council composed of members as set out in Finance Code §154.355.
The fund is composed of two separate accounts, one for trust-funded
contracts and one for insurance-funded contracts.
(b) Advisory Council. The advisory council is named
the Guaranty Fund Advisory Council. The consumer representative and
the insurance-funded industry representative serve a two-year term
beginning on January 1 of an even-numbered year and ending December
31 of the following odd-numbered year. The trust-funded industry representative
serves a two-year term beginning on January 1 of an odd-numbered year
and ending December 31 of the following even-numbered year. The banking
commissioner or the commissioner's official designee serves as the
chairperson of the council.
(c) Assessments. The department shall make and collect
assessments from all sellers of prepaid funeral benefits pursuant
to Finance Code Chapter 154, Subchapter H. Each seller shall remit
the amount of its calculated assessment to the department each year
with its Annual Report filing.
(d) Expenses. The commissioner may use any earnings
from the Prepaid Funeral Guaranty Fund for reimbursement of travel
expenses incurred by the industry and the consumer representatives
of the Guaranty Fund Advisory Council pursuant to the travel guidelines
applicable to state employees, and for the expenses of providing any
other legislatively mandated action with respect to the Prepaid Funeral
Guaranty Fund, including but not limited to audits.
(e) Meetings. The Guaranty Fund Advisory Council shall
meet on a periodic basis as determined by the commissioner in order
to fulfill the requirements of supervising the operation and maintenance
of the Prepaid Funeral Guaranty Fund.
|
| Source Note: The provisions of this §25.17 adopted to be effective November 5, 2009, 34 TexReg 7597; amended to be effective November 10, 2011, 36 TexReg 7505; amended to be effective May 7, 2020, 45 TexReg 2829 |
