SB 883 - This act modifies provisions of the Missouri Preneed Funeral Contract Act.
The act changes the definition of "insurance-funded preneed contract" by specifying that the annuitant is the beneficiary of the preneed contract.
Currently, a preneed contract seller must deposit the payments received under the contract into a designated trust fund within sixty days of receipt. The act states that the seller must deposit the payments into the trust within thirty days of receipt.
Insurance-funded preneed contracts where the insurance policy funding the contract is not sold in conjunction with the preneed contract or sold to the purchaser or beneficiary by the funeral provider or seller of the contract are exempted from complying with Sections 436.400- 436.520, regulating insurance-funded preneed contracts. Such preneed contracts shall be required to identify the beneficiary of the preneed contract and information to make a claim on the insurance policy.
If the proceeds from the life insurance policy funding the preneed contract exceed the cost and services provided under the preneed contract the excess shall be paid to the purchaser of the preneed contract or if such person is also the beneficiary of the contract, deceased, and received public assistance then the excess shall be paid to the state of Missouri.
The act states that in joint account-funded preneed contracts all payments made by the purchaser shall be placed in the joint account by the seller within thirty days of receipt, instead of ten days. Currently, within fifteen days after a provider delivers a copy of certificate of performance to the seller the seller shall take steps to secure payment of the funds from the financial institution. The act provides that the seller now has thirty days to secure payment.
In situations where an insurance-funded preneed contract has lapsed, is no longer in force, or has had loans taken against it, the seller or provider may cancel the contract by returning to the purchaser eighty-five percent of all other contract payments made by the purchaser.
If the original provider named in the preneed contract is no longer in existence or is not licensed at the time of the beneficiary's death, the seller may pay any licensed funeral establishment chosen by the person making the arrangements for the beneficiary of the preneed contract. If the funeral establishment chosen by the person is not licensed or if the seller and the new provider cannot reach agreement as to payment by the seller to the provider then the seller shall pay the money that would have been paid to the original provider to the person who has financial responsibility for the final disposition of the beneficiary's body, subject to proof that such person has the right of sepulcher.
The act states that a seller who sells trust-funded preneed contracts shall include the current market value of the trust fund, instead of the face value, in the annual report.
Currently, a seller of an insurance-funded preneed contract must include in the annual report the status and total face value of each policy. The act specifies that a seller shall only provide the total face value of the policy as requested by the Board of Embalmers and Funeral Directors.