CO SB125

Expands the definition of "contract seller" to include those offering to sell funeral goods, merchandise, and services through preneed contracts, with "funeral goods" defined by reference to section 12-54-102.

Requires contract sellers to disclose the name and address of the trustee holding preneed contract funds and notify buyers when funds are deposited into trust, with disclosure advising consumers to contact the commissioner for confirmation.

Allows contract buyers or their heirs to transfer preneed contracts to another funeral provider, with the original seller permitted to retain up to 15 percent of the original contract purchase price if another provider is selected.

Establishes new requirements for change of ownership of preneed contracts, including written notice to the commissioner at least 14 days before sale closing with detailed accounting and documentation, with commissioner approval required within 60 days or sale is deemed approved.

Decreases the Division of Insurance cash fund appropriation by $2,400 for fiscal year beginning July 1, 2013, and applies bill provisions to preneed contracts created on or after the effective date.