HB 6300 - Funeral Service Contracts

• Allows funeral service contracts to be funded through partial, collateral, or complete assignment of existing life insurance policies, in addition to traditional money or securities deposits.

• Requires funeral service establishments to obtain written consent from purchasers before transferring escrow funds to insurance contracts and mandates disclosure of associated fees, costs, and commissions.

• Permits irrevocable funeral service contracts funded by life insurance policy assignments to exceed the $5,400 limit, with amounts over $5,400 remitted to the state or beneficiary's estate depending on Medicaid status at time of death.

• Allows irrevocable funeral service contracts to be transferred between funeral homes upon request of the purchaser or person arranging funeral services; exempts life insurance policy assignments from escrow account and notification requirements.

• Clarifies contract cancellation rules: revocable contracts may be cancelled with refunds minus actual costs incurred; irrevocable contracts cannot be cancelled but may be transferred to another licensed funeral establishment.

• All amendments effective October 1, 2011.