Prepaid Funeral Contracts
Prepaid funeral contracts are governed by Chapter 154 of the Texas Finance Code and are under the jurisdiction of the Texas Department of Banking. Texas law requires that sellers of prepaid funeral contracts have a permit issued by the Texas Department of Banking or be acting as an agent for a licensed permit holder. A permit holder may either sell trust-funded or insurance-funded prepaid funeral contracts. Under a trust-funded contract, purchaser funds are placed with a financial institution and with an insurance-funded contracts, purchaser funds are used to purchase an insurance policy.
Prepaid funeral contracts offer you the opportunity to fully consider your needs and wishes and control the cost and nature of your funeral services to be provided at a future date. Prepaid funeral contracts vary in terms, funding options, and coverage and should, like any other purchase involving a substantial amount of money, be reviewed carefully before execution.
With a prepaid funeral contract, you are entitled to receive all guaranteed items selected on the contracts at no additional charge, if the terms of the contract have been met. There may be additional charges for items that are not part of the prepaid contract or those cash advance items purchased as nonguaranteed items. These may include such things as opening and closing of the grave and death certificates. You should discuss with the permit holder the funeral services and merchandise that are not covered by your prepaid funeral contract.
Effective January 2010, permit holders are required to provide an informational brochure discussing prepaid funeral benefits contracts to all potential purchasers.
If you have additional questions regarding prepaid funerals, please contact:
Texas Department of Banking
Special Audit Division
2601 North Lamar Blvd.
Austin, Texas 78705-4294
(512) 475-1290
(877) 276-5554 (toll free)
(512) 475-1288 fax
Website: www.dob.texas.gov
The informational website for prepaid funeral benefits contracts:
www.prepaidfunerals.texas.gov
If you have additional questions regarding an insurance policy to be issued in connection with a prepaid funeral contract, please contact:
Texas Department of Insurance
Consumer Help Line
P.O. Box 149104
Austin, Texas, 78714-9104
(512) 463-6515
(800) 252-3439
You may secure additional information regarding mortuary laws in the State of Texas by requesting a complete copy of the Texas Occupations Code, Chapter 651, and the Commission Rules, by contacting the Texas Funeral Service Commission at P. O. Box 12217, Capitol Station, Austin, Texas, 78711, (512) 936-2474 or 1-888-667-4881, fax (512) 479-5064. Website: www.tfsc.state.tx.us
Who to contact if you have a complaint against a funeral director or a funeral establishment
First, discuss your problem with the funeral director and/or management of the funeral establishment. If you believe you were not treated fairly the funeral director should be given the opportunity to rectify your complaint. If this is not acceptable, you may provide the facts in writing to:
Texas Funeral Service Commission
This is the licensing and regulatory agency for all funeral establishments, crematory establishments, certain cemeteries, funeral directors, and embalmers in the State of Texas. Complaints should specify the exact nature and circumstances of the complaint. You will be notified of the receipt of your complaint. Allegations are reviewed for a violation of Chapter 651, Texas Occupations Code. If there is not a violation of the Code, you will be notified in writing. Once a complaint is opened for investigation the complainant is notified every three (3) months until the complaint is resolved. Send complaints to the Texas Funeral Service Commission, P. O. Box 12217, Capitol Station, Austin, Texas 78711. Enclose copies of all documents you may have received from the funeral establishment.