Texas insurers cannot sell prepaid funeral benefits, but other companies can, officials say.
The enactment of Texas H.B. 3762 has created a new law that forbids Lone Star State insurers from selling prepaid funeral benefits, Texas Insurance Commissioner Michael Geeslin writes in Texas Commissioner’s Bulletin Number B-0013-10.
But Texas insurance laws “do not extend to non insurance holding companies affiliated with insurance companies or entities engaged in the business of insurance,” Geeslin writes.
Despite the new ban on insurance companies and insurance holding prepaid funeral benefits, “non insurance companies within an insurance company holding system company and affiliated with an insurance company or entity engaged in the business of insurance and domiciled in Texas may obtain and hold a permit issued under Chapter 154 of the Finance Code to offer or sell prepaid funeral benefits,” Geeslin writes.