Relating to the regulation of transportation protection agreements.

Contracts

• New Standalone Agreement: You must draft a proprietary TPA contract. You cannot use the standard Texas Department of Banking Model Pre-Need Contract for this service, as that form triggers trusting requirements.
• Mandatory Definitions: Your contract must explicitly define the service as transportation of a body to a licensed facility/crematory only when death occurs more than 75 miles from your location.
• Vendor Alignment: If you use a third-party logistics provider (e.g., Inman, MASA), ensure your consumer-facing contract mirrors the terms and exclusions of your vendor agreement to avoid coverage gaps.

Hiring/Training

• Sales Protocol: Sales counselors must be trained to unbundle this service. It can no longer be a line item within a guaranteed pre-need funeral contract; it must be executed as a separate agreement.
• Geographic Verification: Intake staff must be trained to verify the distance of death (75+ miles) before authorizing service under a TPA.

Reporting & Record-Keeping

• Segregated Files: Maintain TPA records separately from Chapter 154 regulated pre-need files. Commingling these records exposes non-regulated funds to Department of Banking audit scrutiny.
• Accounting: Update your chart of accounts. Revenue from TPAs is not a "prepaid liability" requiring trusting; it is recognized revenue upon contract execution (subject to your specific accounting method for service contracts).

Fees & Costs

• Cash Flow Impact: Positive. You retain 100% of the TPA sales proceeds immediately. You are no longer required to deposit 90% into a trust or purchase an insurance policy.
• Liability Insurance: Review your professional liability/E&O policy. Since these are no longer "insurance products" backed by a state guaranty fund, your business assumes full contractual liability for performance.