MI HB6261

Eliminates the requirement that price increases for funeral or cemetery goods and services paid through assigned life insurance proceeds cannot exceed the Consumer Price Index, allowing for greater price flexibility.

Permits life insurers to issue "associated" life insurance policies with limited death benefits during the first 2 years (minimum 25% year one, 50% year two of initial contract price) if the insured cannot qualify for immediate full coverage.

Establishes a $11,760 maximum death benefit cap for associated life insurance policies and assigned proceeds for non-associated policies, adjusted annually by the Consumer Price Index.

Creates a funeral consumers education and advocacy fund, financed by civil fines up to $10,000 per violation, to promote consumer education about prepaid funeral and cemetery services and provide legal assistance to injured parties.

Requires life insurance producers to disclose associations with funeral establishments or cemeteries, offer alternative prepaid options, and obtain written authorization from estate representatives before releasing assigned insurance proceeds for funeral or cemetery services.