1. (a) Content Requirements. Each contract submitted to the Department of Banking (the "Department") for approval as required by Finance Code, §154.151, must contain the following:

   1. (1) Contract Number--a place for the contract number;
   2. (2) Seller's Name, Address and Signature--a place for the seller's name and address and for the signature of the seller's authorized representative;
   3. (3) Permit Number--a place for the seller's permit number;
   4. (4) Purchaser's Name, Address and Signature--a place for the purchaser's name, address and signature;
   5. (5) Provider's Name, Address and Signature--a place for the provider's name and address and for the signature of the provider's authorized representative, if the provider is different from the seller. If the provider and seller are the same entity, acknowledgment of dual identity, e.g., through reference to the "seller/provider," eliminates the need for duplication of information, signatures and contractual provisions in the separate capacities of provider and seller;
   6. (6) Funeral Merchandise--a place that sets out the particulars of the funeral merchandise offered for sale under the contract which shall include a description of the casket and specifications of the material used in the construction of the casket as well as the specifications of the grave vault used;
   7. (7) Professional Services--a place to set forth the particulars of the professional services to be performed and the funeral home facilities to be provided;
   8. (8) Terms of Payment--a place to set out the terms of payment;
   9. (9) Provider's Agreement--a statement that the provider agrees to furnish the described prepaid funeral benefits specified in the contract, or their equivalent in quality, for a price not to exceed the contract price for funeral merchandise and professional services, excluding any finance charges and charges for credit or decreasing term life insurance, at an undetermined future date dependent on the death of the person designated by the purchaser to receive the prepaid funeral benefits;
   10. (10) Default or Cancellation--provisions setting out rights and obligations of the parties, including the benefits to which the purchaser is entitled, if the purchaser fails to make payments in accordance with the terms of the contract or if any party cancels the contract;
   11. (11) Outstanding Payments at Time of Death--a description of the purchaser's financial obligations, if any, and the terms thereof if the contract price is not paid in full on the death of the person designated by the purchaser to receive the prepaid funeral benefits; such provision shall include a statement of rights of the parties if the contract is funded by an insurance policy featuring a limited death benefit period which has not matured at the time of death;
   12. (12) Change of Address--a statement that each party to the contract will notify the other parties to the contract of any change in that party's address;
   13. (13) Acceptance/Modification of Contract; Entire Agreement--statements that the contract and any separate agreements to irrevocably waive the right to cancel the contract, to irrevocably assign life insurance or annuity benefits, and to pay finance charges constitute the entire agreement; that, the contract is binding when accepted by a duly authorized representative of the seller; that, except as specifically provided otherwise therein, the contract can be modified only by written supplement signed by the seller, provider and purchaser; and that the contract shall be binding upon the successors, assigns, beneficiaries, heirs, and legal representatives of all the parties;
   14. (14) Distribution of Copies--a statement or notation indicating that the seller will receive the original of the executed contract with a copy to the purchaser, the provider, and, if the contract is funded by an insurance policy, the insurance company writing the policy;
   15. (15) Finance Charge--a reference to any provision for the purchaser's payment of a finance charge on any amount due and owing on the contract to the seller and a statement of the terms of such provision. A contract that establishes a finance charge must be made in accordance with Finance Code, Chapter 345, and adhere to requirements for retail installment contracts established therein and in rules, if any, of the Office of Consumer Credit Commissioner that now exist or may hereafter be adopted;
   16. (16) Purchaser's Receipt of Contract--a statement that the purchaser has received a copy of the contract at the conclusion of the discussion of arrangements, if prepaid funeral merchandise or services are purchased;
   17. (17) Approved Contract Form--a statement that the contract form has been approved by the Department;
   18. (18) Agency Addresses--the complete mailing address and telephone number of the Texas Funeral Service Commission, the Texas Department of Banking and, if the contract is funded by an insurance policy or annuity, the Texas Department of Insurance. The telephone number of the Texas Department of Insurance shall be its toll-free consumer number; and
   19. (19) Other Required Statements--any other statements or disclosures required by law.
2. (b) Prohibitions. No contract submitted to the Department for approval shall designate more than one person to receive funeral benefits under that contract; however, a purchaser may change this designation in a trust-funded contract at any time during his or her lifetime and may change it in an insurance-funded contract as the insurance contract or insurer may permit.

Source Note:The provisions of this §25.2 adopted to be effective January 4, 1995, 19 TexReg 10229.