<<Prev Rule

Texas Administrative Code

Next Rule>>
TITLE 7BANKING AND SECURITIES
PART 2TEXAS DEPARTMENT OF BANKING
CHAPTER 25PREPAID FUNERAL CONTRACTS
SUBCHAPTER BREGULATION OF LICENSES
RULE §25.19Guaranty Fund Claims

(a) Claims not eligible. In addition to claims excluded under Finance Code Section 154.359, the following claims are not eligible for payment from the Prepaid Funeral Guaranty Fund:

  (1) a claim based on a trust-funded prepaid funeral benefits contract that was purchased prior to August 31, 1987;

  (2) a claim based on a prepaid funeral benefits contract purchased from a contract seller that did not hold a permit to sell prepaid funeral benefits at the time of sale;

  (3) a claim based on a prepaid funeral benefits contract purchased under a plan that does not pay assessments to the guaranty fund, such as the plan litigated in Sexton v. Mount Olivet Cemetery Association, 720 S.W. 2d 129 (Tex. App.-Austin 1986, no writ) (specifically including, but not limited to, any prepaid funeral benefits purchased from Mount Olivet Cemetery Association);

  (4) a claim under an insurance-funded prepaid funeral contract for a loss arising from or relating to the occurrence of one of the following events:

    (A) default of a funeral provider under a contract written prior to June 19, 2011;

    (B) contract default of a permit holder that occurred prior to September 1, 2009;

    (C) the suspension or revocation of a permit under Chapter 154 of the Finance Code prior to September 1, 2009; or

    (D) the bankruptcy, receivership, seizure, or other failure of the permit holder prior to September 1, 2009.

(b) Claimant's filings. A claimant shall file with the department a completed claim form prescribed by the department together with the following documents and information:

  (1) a copy of the prepaid funeral contract and any amendments thereto;

  (2) evidence of the amount paid on the prepaid funeral contract;

  (3) a copy of a certified copy of the death certificate for the contract beneficiary, if applicable;

  (4) if the claimant is not the purchaser of the contract, evidence of the claimant's authority to file a claim and receive any funds awarded;

  (5) if claimant is acting for the benefit of a group of purchasers as part of a plan to arrange for a successor permit holder, a copy of the plan, and information required by Finance Code §154.3595(c);

  (6) a statement setting forth any special circumstances that may bear on the claim; and

  (7) other information that may be pertinent to the claim that is requested by the department.

(c) Claims review process.

  (1) The Guaranty Fund Advisory Council may delegate to the commissioner the authority to settle and determine claims against the Prepaid Funeral Guaranty Fund up to such amount and with such restrictions as the council may from time to time determine.

  (2) A claimant may request that the Guaranty Fund Advisory Council review a determination by the commissioner regarding a claim against the Prepaid Funeral Guaranty Fund by submitting a request for review of the action to the Guaranty Fund Advisory Council within 30 days of receipt of notice of the commissioner's action. Such request shall be addressed to the Guaranty Fund Advisory Council in care of the commissioner and filed with the commissioner on or before the close of business on the last day of the 30-day period. The Guaranty Fund Advisory Council shall review and may revise the commissioner's determination.


Source Note: The provisions of this §25.19 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

Link to Texas Secretary of State Home Page | link to Texas Register home page | link to Texas Administrative Code home page | link to Open Meetings home page