HBA-DMH H.B. 2100 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 2100
By: Eiland
Insurance
3/15/2001
Introduced



BACKGROUND AND PURPOSE 

A prepaid funeral benefits contract is a preneed agreement made between a
consumer and a funeral home. The Texas Department of Banking (department)
regulates the sale of prepaid funeral contracts and requires that insurance
policies issued to pay for funeral services be reviewed and approved by the
Texas Department of Insurance.  House Bill 2100 creates a specialty license
for prepaid funeral benefits contract vendors. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

House Bill 2100 amends the Insurance Code to authorize the commissioner of
insurance (commissioner) to issue a specialty license to a prepaid funeral
benefits contract vendor under certain conditions.  The bill authorizes a
licensed prepaid funeral benefits contract vendor to act as an agent for
any authorized insurer only in connection with the sale of policies issued
to fund an insurance-funded prepaid funeral benefits contract that has been
approved by the Texas Department of Banking.  The bill prohibits insurance
from being issued unless the brochures or other written materials
containing the required disclosures are prominently displayed and readily
available to the prospective purchaser of the insurance coverage.  

EFFECTIVE DATE

September 1, 2001.