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.