SB00997 - Funeral Service Contracts

• Establishes a standardized form for preneed funeral service contracts effective July 1, 2015, requiring specific disclosures including beneficiary and purchaser information, funeral director details, selected services or merchandise, payment methods, and price guarantees or lack thereof.

• Requires funeral service establishments to deposit 100% of prepaid funeral service funds into escrow accounts with qualified agents and mandates purchasers receive written acknowledgment of initial deposits within 25 days and annual account statements.

• Specifies that unused funds from irrevocable funeral service contracts for Medicaid beneficiaries without price guarantees must be remitted to the Connecticut state treasurer upon the beneficiary's death.

• Clarifies contract requirements for revocable versus irrevocable contracts, including the right of beneficiaries to transfer irrevocable contracts to other funeral service establishments and the ability to cancel revocable contracts.

• Requires funeral service establishments to notify purchasers within 10 days of any transfer of more than 50% ownership or closure of the establishment, and maintain copies of all contracts for six years after service completion.