AR HB1572

Amends the definition of "prepaid funeral benefits contract" to include nonspecified prepaid contracts, which allow selection of funeral merchandise or services at the time of need rather than at contract execution.

Requires nonspecified prepaid contracts to provide contract holders with interest or earnings during the contract term unless canceled, and allows sellers to retain accumulated interest or insurance policy cash surrender value in excess of amounts paid by purchasers upon cancellation.

Requires sellers to provide advance written notice to prepaid contract purchasers when the seller intends to procure a single payment whole life insurance policy or annuity to fund the contract for less money than the total cash payment, provided the contract was originally intended to be fully paid in cash.

Modifies bond investment requirements by changing the minimum credit ratings from "Aa" and "AA" to "A" and "A" respectively as rated by Moody's and Standard & Poor's, and permits continued investment in subsequently downgraded bonds under commissioner-established timeframes.

Repeals the requirement that at least $100,000 of prepaid funeral benefits trust funds be invested in specific approved investments, eliminating the minimum investment threshold previously mandated by law.