HB10 Summary: Preneed Funeral and Cemetery Services Regulation

• Clarifies preneed contracts are not insurance: Defines preneed contracts as written agreements for funeral/cemetery merchandise and services paid before need, explicitly stating they are not insurance products.

• Requires certificates of authority: Any person selling preneed funeral or cemetery services must obtain a certificate of authority from the Department of Insurance; applies to funeral establishments, cemetery authorities, and third-party sellers.

• Establishes trust and funding requirements: Requires deposit of collected funds (60-110% depending on service type) into approved trusts or life insurance/annuity contracts within 30 days of collection; cemetery authorities must have endowment care funds.

• Mandates quarterly reporting: Certificate holders must file quarterly reports detailing preneed contract activity, number of contracts sold/fulfilled, and trustee certifications of trust assets.

• Defines criminal penalties and consumer protections: Establishes Class A-B felonies for unlawful fund receipt/withdrawal/deposit failures; requires 30-day cancellation rights with specified refund amounts (60-100% depending on contract type and timing).