SB767 Summary

• Defines "nonguaranteed prepaid contract" as a prepaid funeral benefits contract that does not guarantee the price of merchandise or services at the time of need.

• Requires nonguaranteed prepaid contracts to state that the contract is not guaranteed and permits them to specify merchandise, services, and prepaid contract price.

• Allows nonguaranteed and nonspecified prepaid contracts to be approved without interest or earnings requirements, though the commissioner may establish additional rules for these contract types.

• Repeals § 23-40-114(h) and restructures delinquency proceedings to allow the Insurance Commissioner to issue cease-and-desist orders and take control of prepaid funeral benefits operations without requiring court appointment as receiver.

• Declares an emergency to take effect upon governor approval due to financial distress risks facing prepaid funeral organizations and the threat to insured benefits.