HB 2594 -- Preneed Funeral Contracts

Sponsor:  Meadows

This bill changes the laws regarding preneed funeral contracts.
In its main provisions, the bill:

(1)  Requires providers of funeral services who sell preneed
funeral contracts to collect and administer payments made under a
contract;

(2)  Requires providers to file a detailed list with the State
Board of Embalmers and Funeral Directors within the Department
Insurance, Financial Institutions, and Professional Registration
containing the name, contract number, and amount of each preneed
contract since the last filing report;

(3)  Requires providers to give written notice within 30 days to
all purchasers of their intention to dispose of assets and cease
doing business and indicate what establishment will be assuming
responsibility for their preneed contracts;

(4)  Authorizes the board to refuse to issue a certificate of
registration or authority, permit, or license and allows it to
file complaints with the Administrative Hearing Commission for
reasons specified in the bill;

(5)  Requires sellers of preneed contracts to keep adequate
records of all money paid by purchasers;

(6)  Authorizes the Office of the Attorney General to order
investigations to determine compliance of the provisions of the
bill by licensees;

(7)  Requires all preneed contracts sold after August 28, 2007,
to maintain at least 80% of the amount paid in a trust and at
least 90% for all contracts sold after August 28, 2008;

(8)  Requires all money received by the seller to be deposited
into a trust fund within 60 days;

(9)  Requires the seller upon cancellation of the contract by the
purchaser to pay the purchaser an amount equal to all payments
made plus interest less the actual expenses;

(10)  Requires purchasers who receive public assistance to file a
copy of the contract with the appropriate state or federal
agency;

(11)  Allows purchasers to redesignate the provider any time
prior to the final disposition of the contract by a written
notice; and

(12)  Requires that all complaints to the board be in writing.

Missouri House of Representatives
94th General Assembly, 2nd Regular Session
Last Updated October 15, 2008 at 3:12 pm