SB98 Summary

• Strengthens consumer protections for preneed funeral and cemetery contracts by requiring stricter trust fund handling, deposits, and timely reporting to the Alabama Department of Insurance.

• Increases criminal penalties for preneed violations, establishing felony charges (Class B and C) for unlawfully receiving payments without a certificate of authority, failing to deposit funds in trust, and unauthorized trust withdrawals; upgrades non-felony violations from Class B to Class A misdemeanor.

• Requires certificate holders to file semi-annual reports on preneed contract activity and maintain written sales logs; clarifies that persons selling only preneed burial rights are exempt from sales agent registration requirements.

• Grants the Insurance Commissioner jurisdiction over preneed sellers operating without proper certificates and authorizes civil actions against violators with recovery of actual damages and potential punitive damages.

• Addresses endowment care funds by prohibiting cemetery board members from also serving as endowment care trustees (with limited exceptions), requiring bond protections, and defining net income calculations for endowment care purposes.