Texas House bill by Rep. Lambert excludes transportation protection agreements from funeral insurance definitions

Passed bill authored by State Rep. Stan Lambert aims to distinguish transportation protection agreements from prepaid funeral benefits and insurance, seeking to clarify regulatory definitions in the Texas Finance and Insurance Codes, according to the Texas Legislature website.

In the House, 56 Democrats and 86 Republicans voted in favor of the bill, while four Democrats opposed it.

Meanwhile, in the Senate, 11 Democrats and 20 Republicans voted in favor, with no opposing votes.

Stan Lambert introduced the bill in the Texas House on Tuesday, Nov. 12, 2024, ahead of the official start of the 89th regular legislative session on Jan. 14, 2025.

Lambert graduated from Abilene Christian University in 1975 with a BS.

Lambert, a Republican, was elected to the Texas State House in 2017 to represent the state’s 71st House district, replacing previous state representative Susan King.

According to the Texas Legislature, the bill’s official text was summarized as follows: ‘Relating to the regulation of transportation protection agreements’.

The following is our breakdown, based on the actual bill text, and may include interpretation to clarify its provisions.

In essence, this bill amends the Texas Finance Code to define “transportation protection agreements,” excluding them from the definitions of “prepaid funeral benefits” and “funeral services.” It clarifies that these agreements involve coordinating and arranging professional services for preparing and transporting a deceased body, distinct from insurance activities. The bill adds Section 101.056 to the Insurance Code, confirming that transportation protection agreements are not considered insurance and are exempt from insurance regulations. The act will take effect on Sept. 1, 2025.

The bill was co-authored by Rep. Mihaela Plesa (Democrat – District 70).

The bill received its final legislative approval on Thursday, May 29, and was signed into law by Gov. Greg Abbott on Friday, June 20.

Bills in Texas go through a multi-step legislative process, including committee review, debates, and votes in both chambers before reaching a final decision. Each session, there are typically thousands of bills introduced, but only a portion successfully navigate the process to become law.

You can read more about the bills and other measures here.