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AL HB588
Bill
Status
4/22/2010
Primary Sponsor
Ronald Johnson
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AI Summary
HB588 Summary
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Clarifies that preneed contracts are not insurance contracts and requires sellers of funeral/cemetery preneed services to obtain a certificate of authority from the Department of Insurance.
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Establishes quarterly financial reporting requirements for preneed contract providers and changes certificate renewal dates to September 30 annually, with inspection fees up to $250 authorized.
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Creates the Alabama Funeral and Cemetery Preneed Consumer Protection Fund for contracts purchased after April 30, 2002, funded by per-contract contributions of up to $20 quarterly, providing restitution to consumers if providers fail to deliver services.
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Increases penalties for willful violations from Class B misdemeanor to Class C felony and subjects cemetery authorities to preneed regulations for the first time.
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Establishes preconstruction trust requirements for cemetery projects involving mausoleums, columbaria, or crypts, with funds held until construction completion.
Legislative Description
Preneed funeral and cemetery services, sellers of required to be licensed by Board of Funeral Service or obtain certificate of authority from Insurance Department, certificate of authority requirements altered, trust requirements specified, bonds, penalties increased, Funeral and Cemetery Preneed Consumer Protection Fund established, cemetery authorities further provided for, Secs. 27-17A-5, 27-17A-26 added; Secs. 27-17A-3, 27-17A-10, 27-17A-11, 27-17A-12, 27-17A-13, 27-17A-14, 27-17A-15, 27-17A-22, 27-17A-25, 27-17A-30, 27-17A-31, 27-17A-32, 27-17A-40, 27-17A-41, 27-17A-42, 27-17A-43, 27-17A-44, 27-17A-50, 27-17A-55 am'd. (2010-20437)
Funeral Service, Board of
Last Action
Forwarded to Governor on April 22, 2010 at 5:45 p.m.
4/22/2010