Tex. Finance Code § 154.206
This is the official text of Tex. Finance Code § 154.206, part of Texas’s Finance Code — regulates banks and other financial institutions.
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§ 154.206. ASSIGNMENT OF RIGHT TO BENEFITS.
Official statutory text
(a) The purchaser of an insurance-funded contract may assign the purchaser's ownership of and rights to benefits under the insurance policy to the seller, the funeral provider, the trustee, or other person.
(b) An assignment to the seller, the funeral provider, or an affiliated trustee may not be made irrevocable unless:
(1) the assignment is made solely to facilitate the eligibility of the purchaser under Title XIX, Social Security Act (42 U.S.C. Section 1396 et seq.), or other law providing for a public assistance program; or
(2) the assignee is specifically prohibited from exercising any right under the policy except administration of the benefits.
(c) An assignee under this section is subject to a fiduciary duty to apply the insurance policy benefits as provided by the contract and this chapter.
(b) An assignment to the seller, the funeral provider, or an affiliated trustee may not be made irrevocable unless:
(1) the assignment is made solely to facilitate the eligibility of the purchaser under Title XIX, Social Security Act (42 U.S.C. Section 1396 et seq.), or other law providing for a public assistance program; or
(2) the assignee is specifically prohibited from exercising any right under the policy except administration of the benefits.
(c) An assignee under this section is subject to a fiduciary duty to apply the insurance policy benefits as provided by the contract and this chapter.
Status: in_force · Read it on the official government site
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