MI SB0268

Allows life insurers to issue life insurance policies or annuity contracts with proceeds that can be assigned to funeral establishments, cemeteries, or sellers to pay for cemetery or funeral goods and services, subject to strict conditions and regulatory oversight.

Limits assigned death benefits to $12,720.00 for associated policies (adjusted annually by Consumer Price Index) and restricts assignments to the amount needed for contracted cemetery or funeral services.

Requires written assignments to include specific disclosures, dispute resolution procedures, price increase limitations, and revocation rights for assignors and estate representatives before services are provided.

Establishes that funeral establishments, cemeteries, and sellers can only be limited life insurance producers and prohibits them from selling other insurance types or conditioning the sale of funeral/cemetery services on life insurance purchases.

Creates the funeral consumers education and advocacy fund, funded by civil fines up to $10,000.00 per violation, to educate consumers about prearrangement options and provide legal assistance to injured parties; violations are misdemeanors punishable by fines up to $1,000.00 and imprisonment up to 6 months.