Can I advise a consumer to cancel their PFC and insurance policy?
Funeral homes should not advise Texas consumers to cancel their PFCs and related insurance policies if the intent is to sell the consumer a new PFC with a different permit holder and insurance company. This practice could harm the consumer since the cancellation benefit obtained from the insurance company will be significantly less than what the consumer has paid in. Remember, the companies are unable to process and pay on policy surrenders at this time. However, if a consumer insists on canceling their PFC and insurance policy, it is recommended that the funeral home obtain a signed statement from the consumer acknowledging that the cancellation request is being made at his/her request, and that he or she understands that the companies are unable to pay surrenders at this time. The statement should also note that the cash surrender value of the policy will be less than premiums that have been paid in and that the cancellation was not initiated by the funeral home and/or a sales repres
