Tex. Fin. Code Section 154.205
Cancellation of Insurance-funded Contract

(a)

A purchaser of an insurance-funded prepaid funeral benefits contract may cancel the contract before maturity by giving written notice of cancellation to the permit holder. The permit holder shall maintain copies of the written notice of cancellation until the third anniversary of the date of receipt of notice.

(b)

Cancellation of the contract under Subsection (a) does not automatically cancel the insurance policy funding the prepaid funeral benefits contract. The insurance policy may be canceled in accordance with the terms and conditions of the policy in exchange for the policy’s cash surrender value.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 1190 (H.B. 3762), Sec. 18, eff. September 1, 2009.

Source: Section 154.205 — Cancellation of Insurance-funded Contract, https://statutes.­capitol.­texas.­gov/Docs/FI/htm/FI.­154.­htm#154.­205 (accessed Jun. 5, 2024).

154.001
Purpose 154.002
Definitions 154.003
Effect on Insurance Laws 154.004
Group Insurance Contracts 154.051
Administration of Chapter 154.052
Annual Report 154.053
Records 154.054
Examination Fee 154.055
Disclosure of Certain Information 154.056
Payment of Restitution Money 154.101
Permit Requirement 154.102
Permit Application 154.103
Issuance of Permit 154.104
Term of Permit 154.105
Prohibition on Transfer of Permit 154.106
Transfer of Business Ownership 154.107
Required Renewal for Sellers 154.108
Renewal Fee 154.109
Grounds for Cancellation or Suspension of or Refusal to Renew Permit 154.110
Order to Cancel, Suspend, or Refuse to Renew Permit 154.111
Successor Permit Holder 154.131
Brochure 154.132
Website 154.133
Reference or Link to Website 154.151
Form of Contract 154.152
Representations Regarding Approval of Permit Holder 154.153
Allocation of Sales Price 154.154
Agreement to Pay Finance Charge 154.155
Cancellation of Contract 154.156
Waiver of Right of Cancellation 154.157
Performance of Contract 154.158
Enforcement of Contract 154.159
Administration of Money Received 154.160
Agent 154.161
Responsibilities of Funeral Provider 154.201
Requirements for Solicitation of Insurance-funded Benefits 154.202
Execution of Contract in Conjunction with Application for Policy 154.203
Payment of Premiums 154.204
Conversion from Trust-funded Prepaid Funeral Benefits 154.205
Cancellation of Insurance-funded Contract 154.206
Assignment of Right to Benefits 154.207
Receipt of Benefits Payable Under Policy 154.208
Advisory Committee 154.251
Applicability 154.252
Retention of Money for Expenses 154.253
Deposit of Money Paid or Collected 154.254
Amount Payable on Cancellation of Contract 154.255
Standard of Duty of Depository 154.256
Standard of Duty of Trustee 154.257
Investment Plan 154.260
Use of Money to Purchase, Lease, or Invest in Asset Owned by Seller or Funeral Provider 154.261
Withdrawal of Earnings to Pay Certain Expenses 154.262
Withdrawal of Money on Death of Beneficiary 154.263
Withdrawal of Earnings Attributable to Contract 154.264
Accounting Records 154.265
Default Under Certain Contracts 154.301
Presumption of Abandonment 154.302
Notice of Abandoned Money 154.303
Authorization to Withdraw Money 154.304
Delivery to Comptroller of Abandoned Money and Report 154.305
Discharge of Contractual Obligations 154.306
Liability and Obligations of Comptroller 154.307
Recourse of Purchaser or Beneficiary 154.351
Maintenance of Guaranty Fund 154.352
Assessment on Sales Contracts 154.353
Deposit of Fund or Portion of Fund 154.354
Use of Fund Earnings 154.355
Advisory Council 154.356
Assessment on Outstanding Trust-funded Contracts to Pay Claims 154.357
Claim Against Seller, Funeral Provider, or Depository 154.358
Claims Against Fund 154.359
Permissible Uses of Fund 154.360
Subrogation 154.400
Investigation and Subpoena Authority 154.401
Criminal Penalty for Certain Violations of Chapter 154.402
Criminal Penalty Relating to Deposit or Withdrawal of Money 154.403
Criminal Penalty for Failure to File Report 154.404
Criminal Penalty for Failure to Deliver Money to Designated Agent 154.405
Criminal Penalty for Agent’s Failure to Deposit Certain Money 154.406
Administrative Penalty 154.407
Injunctive Relief 154.408
Cease and Desist Order 154.409
Suit by Attorney General 154.410
Quo Warranto Proceedings 154.411
Restitution 154.412
Seizure of Prepaid Funeral Accounts and Records 154.413
Notification of Purchaser 154.414
Liquidation of Business and Affairs of Person Following Seizure of Money and Records 154.415
Prohibition Order 154.416
Application for Release from Prohibition Order 154.1511
Cash Advance Items: Non-guaranteed Merchandise and Services 154.1551
Modification at Time of Funeral 154.2021
Requirements for Insurance Policies 154.3525
Assessment on Insurance-funded Contracts 154.3551
Limit on Liability 154.3565
Assessment on Outstanding Insurance-funded Contracts to Pay Claims 154.3595
Default by Funeral Provider 154.4061
Pattern of Wilful Disregard 154.4081
Emergency Order
Green check means up to date. Up to date

Accessed:
Jun. 5, 2024

§ 154.205’s source at texas​.gov