HB31 Summary: Preneed Funeral Service Contracts Regulation

• Clarifies that preneed contracts are not insurance contracts and requires all persons selling funeral or cemetery services on a preneed basis to obtain a certificate of authority from the Department of Insurance.

• Revises certificate of authority application and renewal dates (changed to July 1) and allows waiver of annual financial statement filings under certain conditions; requires quarterly reports of preneed contract activity instead.

• Establishes trust fund requirements for preneed contracts, specifying deposit percentages (75% for funeral services/merchandise, 60% for outer burial containers, 100% for cash advances) and deposit timelines within 30 days of collection.

• Provides detailed cancellation and refund provisions for preneed contracts, including full refunds within 30 days if cancelled early, and specified refund percentages (75-100%) for cancellations after 30 days, with different terms for trust-funded versus insurance-funded contracts.

• Imposes criminal penalties ranging from Class A misdemeanor to Class B felony for violations including unlicensed preneed contract sales, failure to deposit required trust funds, and unauthorized trust withdrawals; repeals five outdated cemetery preneed contract sections.