In addition to the contents specified in §25.2 of this title (relating to All Prepaid Funeral Contracts), each prepaid funeral contract submitted for approval by the Department that is funded by a trust as provided in Finance Code, §154.201, must contain the following:

1. (1) Deposit of Purchaser's Payments--a statement that, within 30 days of collection, the seller/provider will deposit the funds collected from the purchaser, less any retainage, finance charges, and charges for credit or decreasing term life insurance, in a depository within this state that has been approved by the Department; and
2. (2) Seller/Provider's Retention of Monies Received--a statement that the seller/provider plans to retain one-half of the funds collected (excluding any finance charges and charges for credit or decreasing term life insurance) not exceeding 10% of the total amount of the contract, if the seller/provider intends to retain such funds; and that the purchaser who cancels the contract during the first year at a time when contract payments are current will receive 90% of the amounts paid in by the purchaser (excluding any finance charges and charges for credit or decreasing term life insurance) or the amounts deposited in trust under the contract, whichever is greater, if the seller/provider intends to retain the balance of such funds;
3. (3) Irrevocable Waiver of Cancellation--a notice that the purchaser may irrevocably waive and renounce the right to cancel the contract by executing a written waiver;
4. (4) Plan I or II--a notation that the trust is funded with 100% (Plan I) or 90% (Plan II) of the purchaser's payments under the contract;
5. (5) No Partial Cancellations of Contract--an acknowledgment that neither the purchaser nor the seller/provider may make partial cancellations of the contract; and
6. (6) Use of Different Provider--a disclosure that, unless the seller/provider agrees otherwise, the purchaser's use of a provider that is not named in the original contract is a cancellation of the original contract by the purchaser.

Source Note:The provisions of this §25.4 adopted to be effective January 4, 1995, 19 TexReg 10229.