MS HB887

Defines "substitute provider" as any funeral home, cemetery, or other provider who furnishes final needs to a beneficiary of a preneed contract sold by another provider.

Prohibits trust funds from being loaned to the preneed provider, entities in which the provider has financial interest, employees/directors/owners of the provider, or relatives of these persons.

Prohibits trust funds from being invested in any business in which the preneed provider or related persons have an interest.

Establishes that preneed contracts in Mississippi are portable and allows beneficiaries to name substitute providers in writing; requires trustee to pay substitute provider not less than the amount deposited in trust plus earnings for contracts sold after July 1, 2012.

Modifies procedures for converting trust-funded prepaid funeral benefits to insurance or annuity contracts, requiring Secretary of State approval and written disclosure to affected purchasers.