Texas Finance Code
§ 154.3595 — DEFAULT BY FUNERAL PROVIDER
FI § 154.3595Title 3. FINANCIAL INSTITUTIONS AND BUSINESSES · Part E. OTHER FINANCIAL BUSINESSES · Ch. 154. PREPAID FUNERAL SERVICES · Art. H. GUARANTY FUND
Statute text
View on source(a)This section applies to a permit holder that administers a prepaid funeral benefits contract for which:
(1)the permit holder is not the funeral provider; and
(2)there is an actual or anticipated failure or inability of the funeral provider to perform its obligations under the contract. (a-1) A permit holder to which this section applies shall notify each purchaser of an outstanding prepaid funeral benefits contract of any closure of the funeral provider named in the contract not later than the 90th day after the date of its receipt of notice of the closure.
(b)A permit holder to which this section applies shall make a reasonable effort to find a substitute funeral provider willing to assume the contractual obligations of the defaulting funeral provider. A reasonable effort includes:
(1)identifying and contacting at least three funeral providers within the same community or geographic service area as the defaulting funeral provider;
(2)if at least three funeral providers do not exist within the same community or geographic service area, identifying and contacting at least three funeral providers within a 50-mile radius of the defaulting funeral provider; and
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Legislative history
Acts 2013, 83rd Leg., R.S., Ch. 39 (S.B. 297), Sec. 5, eff. September 1, 2013.