SB 450 - 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, when a preneed contract is funded by a trust 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. Similarly, in a joint-account funded preneed contract the seller must deposit the money paid by the purchaser within thirty days of receiving the payment, rather than ten days. Unless a seller sells five or less preneed contracts per calendar year, a seller must deposit moneys received on a preneed contract into an escrow account within five days of receiving the funds. Failure to do so could result in disciplinary action by the Board of Embalmers and Funeral Directors against the seller's license.
In situations where a life insurance-funded preneed contract has lapsed, is no longer in force, or has had loans taken against it, the seller may cancel the contract and must refund to the purchaser payments as provided under current law, excluding insurance premium payments.
The act changes provisions of law which require a seller that sells trust-funded preneed contracts to include in the annual report to the Board of Embalmers and Funeral Directors the current face value of the trust fund to state that the report must include the current market value of the trust fund.
Currently, a seller of an insurance-funded preneed contract must include in the annual report to the Board of Embalmers and Funeral Directors 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 if requested by the Board.
The act is similar to SB 951 (2016), SCS/SB 498 (2015), and SB 883 (2014).