Texas Finance Code 154.002 – Definitions
Terms Used In Texas Finance Code 154.002
- Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
- Contract: A legal written agreement that becomes binding when signed.
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
- Person: includes corporation, organization, government or governmental subdivision or agency, business trust, estate, trust, partnership, association, and any other legal entity. See Texas Government Code 311.005
In this chapter:
(1) “Cash advance item” has the meaning assigned by 16 C.F.R. § 453.1.
(1-a) “Commission” means the Finance Commission of Texas.
(2) “Commissioner” means the banking commissioner of Texas.
(3) “Department” means the Texas Department of Banking.
(4) “Earnings” means the amount in an account in excess of the amount paid by the purchaser of a prepaid funeral benefits contract that is deposited in the account as provided by § 154.253, including accrued interest, accrued income, and enhanced or increased value.
(5) “Financial institution” has the meaning assigned by § 201.101.
(6) “Funeral provider” means the person designated in a prepaid funeral benefits contract that has agreed to provide the specified prepaid funeral benefits.
(6-a) “Insurance-funded contract” means an insurance-funded prepaid funeral benefits contract.
(7) “Insurance policy” means a life insurance policy or annuity contract.
(8) “Person” means an individual, firm, partnership, corporation, or association.
(9) “Prepaid funeral benefits” means prearranged or prepaid funeral or cemetery services or funeral merchandise, including an alternative container, casket, or outer burial container. The term does not include a grave, marker, monument, tombstone, crypt, niche, plot, or lawn crypt unless it is sold in contemplation of trade for a funeral service or funeral merchandise to which this chapter applies.
(10) “Seller” means a person selling, accepting money or premiums for, or soliciting contracts for prepaid funeral benefits or contracts or insurance policies to fund prepaid funeral benefits in this state.
(11) “Crypt,” “grave,” “lawn crypt,” “niche,” and “plot” have the meanings assigned by § 711.001, Health and Safety Code.
(12) “Funeral merchandise” or “merchandise” means goods sold or offered for sale on a preneed basis directly to the public for use in connection with funeral services.
(13) “Funeral service” or “service” means a service sold or offered for sale on a preneed basis that may be used to:
(A) care for and prepare a deceased human body for burial, cremation, or other final disposition; and
(B) arrange, supervise, or conduct a funeral ceremony or the final disposition of a deceased human body.
(14) “Trust-funded contract” means a trust-funded prepaid funeral benefits contract.