(a) Contract requirements. The department must approve a non-model contract before you can use it. Your proposed non-model contract must:
  (1) contain a disclosure informing the purchaser of the funeral goods and services that will be provided under the contract, as described by subsections (b) and (c) of this section;
  (2) define terms used in the contract as described by subsection (d) of this section;
  (3) state and explain the purchaser's obligations, your obligations, and the name and obligations of the provider if you are not performing all funeral services under the contract;
  (4) if the provider is not the licensed seller, a statement that the provider agrees to discharge the responsibilities imposed on a funeral provider by Finance Code §154.161;
  (5) the impact of terms in the insurance policy on the contract if the contract is insurance-funded, as described by subsection (e) of this section;
  (6) disclose and explain the purchaser's cancellation rights under the contract and, if the contract is insurance-funded, the effect of insurance policy cancellation or assignment on the contract, as described by subsection (f) of this section;
  (7) state events of default under the contract for all parties and explain the consequences of default, as described by subsection (g) of this section;
  (8) state and explain the circumstances under which the responsible person may modify or change the contract at the death of the contract beneficiary, as described by subsection (h) of this section;
  (9) disclose and explain all payment terms under the contract and related provisions as described by subsection (i) of this section;
  (10) contain a section for required signatures and related notices as described by subsection (j) of this section;
  (11) contain a standard disclosure explaining how a purchaser can make inquiries or file complaints with specified regulatory agencies, as described by subsection (k) of this section;
  (12) comply with subsections (l) and (m) of this section;
  (13) comply with §25.4 of this title (relating to What Are the Plain Language Requirements for a Non-Model Contract or Waiver); and
  (14) be approved by the department as provided by §25.5 of this title (relating to How Do I Obtain Approval of a Non-Model Contract or Waiver).
(b) Statement of guaranteed funeral goods and services selected. The first section of a proposed prepaid funeral benefits contract must inform the purchaser of the guaranteed funeral goods and services that you will provide under the contract, as required by Finance Code, §154.151(e). This section must appear entirely on page one of the contract exactly as set out in the model contract and in the following figure, including substantially the same formatting and spacing, except:
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  (1) you may move specific goods and services between general description categories;
  (2) you may move specific goods and services from figure 7 TAC §25.3(c)(1) to figure 7 TAC §25.3(b), if you guarantee the price of the good or service and include any required Federal Trade Commission disclosures regarding cash advance items;
  (3) you may change the description of specific goods or services if the alteration does not change the intent of the description in the standard disclosure;
  (4) you may add other, specific funeral goods and services to the list of funeral goods and services to be provided;
  (5) you may delete check boxes and related text for sealing features in casket and outer burial container descriptions, for example, "gasketed", "non-gasketed", "seal", and "non-seal", if these features are not included in the funeral home's price list; and
  (6) if the goods and services you sell are specifically limited and constitute significantly less than those goods and services normally required for a funeral, you may substitute a simplified disclosure that the contract is for your specific goods and services only and that you do not offer any other funeral goods and services. For example, you may substitute this limited disclosure if you sell only services relating to opening and closing of the grave or unique memorials that utilize a token portion of cremains, or if you only sell limited funeral goods such as outer burial containers or caskets without furnishing funeral services.
  (7) The Explanation of Certain Charges language may be moved from figure 7 TAC §25.3(c)(1) to figure 7 TAC §25.3(b).
  (8) If your contract is in electronic form, the statement of guaranteed funeral goods and services selected must appear on a single screen or consecutive screens, near the beginning or top of the contract, immediately following consumer disclosures and consent required by 7 TAC §25.2(f).
(c) Statement of non-guaranteed cash advance items selected.
  (1) The second section of a proposed prepaid funeral benefits contract must inform the purchaser of the non-guaranteed cash advance items that you will provide under the contract, as required by Finance Code, §154.1511(b). The section must appear entirely on either page one or two of the contract exactly as set out in the model contract and in the following figure, including substantially the same formatting and spacing, except;
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    (A) you may delete the non-guaranteed cash advance items section if you do not sell cash advance items;
    (B) you may move the Explanation of Certain Charges language to figure 7 TAC §25.3(b);
    (C) you may change the subtotal pages references if figures 7 TAC §25.3(b) and 7 TAC §25.3(c)(1) are to be placed on the same page of the contract;
    (D) you may move specific goods and services from figure 7 TAC §25.3(c)(1) to figure 7 TAC §25.3(b) if you guarantee the price of the good or service;
    (E) you may change the description of specific goods or services if the alteration does not change the intent of the description in the standard disclosure;
    (F) you may add other specific funeral goods and services to the list of non-guaranteed funeral goods and services to be provided only through a non-model filing; and
    (G) if your contract is in electronic form, this section must appear on a single screen immediately following the statement of guaranteed funeral goods and services selected.
  (2) If you delete the statement of non-guaranteed cash advance items:
    (A) for a paper contract, you must include figure 7 TAC §25.3(c)(2)(B) on the bottom of page one of the contract, including substantially the same formatting and spacing; and
    (B) for a contract in electronic form, you must include the following figure immediately following the statement of guaranteed funeral goods and services selected:
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(d) Definitions. Your proposed prepaid funeral benefits contract must list, define, and use the terms "contract beneficiary", "responsible person", "provider", "purchaser", and "seller", or terms commonly understood by consumers to be equivalent, substantially as defined in a model contract. For example, you may use a combined term such as "seller/provider" if you believe the alternate term is more descriptive of your services. If your proposed contract is insurance-funded, you must also list, define, and use the terms "insurance company", "insurance policy", and "premiums" in the contract, or terms commonly understood by consumers to be equivalent, substantially as defined in the department's insurance-funded model contract. You may list, define and use additional terms if they are consistent with the requirements of §25.4 of this title.
(e) General provisions. Your proposed prepaid funeral benefits contract must recognize and explain the purchaser's obligations, your obligations, and the obligations of the provider if you are not performing all funeral services under the contract, and the impact of terms in the insurance policy on the contract if the contract is insurance-funded, with respect to:
  (1) your obligation (and that of the provider) to furnish the guaranteed funeral goods and services selected in the contract for a cost not to exceed the total contract price applicable to the guaranteed charges at the death of the contract beneficiary, if the purchaser has fully complied with the contract and with each insurance policy, if the contract is insurance-funded;
  (2) your obligation (and that of the provider) to furnish the non-guaranteed cash advance items selected in the contract, if current costs are paid at the time of death or how any unallocated and remaining non-guaranteed funds will be refunded;
Cont'd...