Texas § 154.206 ASSIGNMENT OF RIGHT TO BENEFITS.

Texas Statutes

§ 154.206 — ASSIGNMENT OF RIGHT TO BENEFITS.

Texas § 154.206

Code FIFinance Code

This text of Texas § 154.206 (ASSIGNMENT OF RIGHT TO BENEFITS.) is published on Counsel Stack Legal Research, covering Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Tex. Finance Code Code Ann. § 154.206 (2026).

Text

Sec. 154.206. ASSIGNMENT OF RIGHT TO BENEFITS.

(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 poli

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Sec. 154.206. ASSIGNMENT OF RIGHT TO BENEFITS. (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.

Legislative History

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997. Amended by: Acts 2009, 81st Leg., R.S., Ch. 1190 (H.B. 3762 ), Sec. 19, eff. September 1, 2009.