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MS HB396
Bill
Status
2/5/2019
Primary Sponsor
Nick Bain
Click for details
AI Summary
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Requires owners of perpetual care cemeteries to file a $500,000 surety bond (or lower amount set by Secretary of State) with the Secretary of State to protect lot owners, purchasers, and their families when the cemetery is insolvent or lacks required trust funds.
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Allows persons claiming against the cemetery surety bond to maintain legal action against both the cemetery and the surety for losses or damages sustained.
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Requires sellers of preneed funeral contracts funded by trust to file a $500,000 surety bond (or lower amount set by Secretary of State) to protect contract beneficiaries from financial loss due to provider fraud, default, insolvency, or misappropriation of trust funds.
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Permits contract beneficiaries or their representatives to bring claims against the preneed contract surety bond for losses and damages suffered.
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Effective date is July 1, 2019.
Legislative Description
Cemeteries and preneed contracts; require those covered or funded by a trust to have surety bond to protect owners or insureds.
Last Action
Died In Committee
2/5/2019