SB 1008
Modifies provisions relating to preneed contracts
LR Number:
Last Action:
3/1/2022 - Second Read and Referred S Insurance and Banking Committee
Journal Page:
Calendar Position:
Effective Date:
August 28, 2022

Current Bill Summary

SB 1008 - Currently, the State Board of Embalmers and Funeral Directors is authorized to conduct financial examinations of providers, sellers, and agents of preneed contracts. This act transfers such duty to the Secretary of State. The Secretary shall forward a copy of any such examination to the State Board. The financial examination of each preneed seller shall include an inquiry and determination of each seller's compliance with current provisions of law regarding preneed contracts and a determination that consumer funds are properly tracked and managed and paid out in accordance with current law. The seller must provide certain information regarding preneed contracts when requested as part of a financial examination. As part of this duty, the Secretary shall have the power to issue subpoenas.

This act authorizes the State Board to refuse to issue a license or discipline a licensee based on disciplinary action against the applicant or licensee for any profession regulated by the Department of Commerce and Insurance or the Secretary of State. After a finding that disciplinary action is warranted, the act authorizes the State Board to impose a fine not to exceed $1,000 per occurrence. As part of any settlement agreement or disciplinary order, the Board may require any person to pay moneys into a preneed trust or preneed joint account that were improperly omitted from such trust or account.

The act creates the "Preneed Audit Fund". All preneed contract reporting fees under current law shall be deposited into the Fund. Money in the Fund shall be used by the State Board to pay for the expenses of conducting preneed audits, examinations, and inspections. The Board or the Secretary may require the person subject to discipline to pay any portion of the expenses of the audit, examination, or inspection.



No Amendments Found.