SB416 Alabama 2010 Session

Under existing law, there are certain standards for the sale of preneed funeral and cemetery merchandise and services

This bill would clarify that a preneed contract is not an insurance contract

This bill would clarify and require any person selling funeral or cemetery services on a preneed basis to obtain a certificate of authority from the Department of Insurance

This bill would require the quarterly submission of a statement of preneed financial transactions to the Commissioner of Insurance

This bill would change the renewal period for persons holding a preneed certificate of authority from April 1 to July 1 and would provide for the expiration of the certificate on September 30 in lieu of June 1

This bill would clarify the amount of a bond used as an alternative to a trusting requirement and would require an initial bond to be based on the amount of preneed liability expected to be incurred within the next 12 months

This bill would require the commissioner, at least annually, to inspect the preneed records of any person lawfully writing, or suspected of unlawfully writing, preneed contracts and would authorize the commissioner to charge an inspection fee of up to $250

This bill would increase the penalties for a willful violation from those for a Class B misdemeanor to those for a Class C felony

This bill would authorize the commissioner to use funds available from all sources in the enforcement of this act

This bill would create the Alabama Funeral and Cemetery Preneed Consumer Protection Fund for the protection of consumers who purchase preneed contracts after April 30, 2002

This bill would clarify that funds received for funeral and cemetery merchandise placed in storage prior to death need not be placed in trust

This bill would subject cemetery authorities to the act

This bill would require any person receiving funds from the sale of a preneed contract to contribute to a trust fund, life insurance contract, or annuity contract

This bill would prohibit a seller of preneed services from sharing in the discharge of the responsibilities of the trustee, except for appointing an adviser

This bill would require any payments received on a preneed contract written after April 30, 2002, to be deposited into an approved trust

This bill would require that preneed cemetery merchandise and services funds remain in trust until cancellation or fulfillment

This bill would remove the requirement that certification of a responsible officer of a preneed cemetery authority be given under oath

This bill would also require a cemetery authority to place funds collected for the construction of a mausoleum, columbarium, or below ground crypt into a preconstruction trust until such time as construction is complete

Relating to the sale of preneed funeral or cemetery merchandise and services; to amend Sections 27-17A-3, 27-17A-10, 27-17A-11, 27-17A-12, 27-17A-13, 27-17A-14, 27-17A-15, 27-17A-22, 27-17A-25, 27-17A-30, 27-17A-31, 27-17A-32, 27-17A-40, 27-17A-41, 27-17A-42, 27-17A-43, 27-17A-44, 27-17A-50, and 27-17A-55, Code of Alabama 1975, and to add Sections 27-17A-5 and 27-17A-26 to the Code of Alabama 1975; to clarify that a preneed contract is not an insurance contract; to require any person selling funeral or cemetery services on a preneed basis to obtain a certificate of authority from the Department of Insurance; to require the quarterly submission of a statement of preneed financial transactions to the Commissioner of Insurance; to change the renewal and expiration dates for a preneed certificate of authority; to clarify the amount of a bond used as an alternative to a trusting requirement and require an initial bond to be based on the amount of preneed liability expected to be incurred within the next 12 months; to require the commissioner, at least annually, to inspect the preneed records of any person lawfully, or suspected of unlawfully, writing preneed contracts; to authorize the commissioner to charge an inspection fee of up to $250; to increase the penalties for a willful violation from a Class B misdemeanor to a Class C felony; to authorize the commissioner to use funds available from all sources in the enforcement of this act; to create the Alabama Funeral and Cemetery Preneed Consumer Protection Fund for the protection of consumers who purchase preneed contracts after April 30, 2002; to provide that funds received for funeral and cemetery merchandise placed in storage prior to death need not be placed in trust; to subject cemetery authorities to the act; to require any person receiving funds from the sale of a preneed contract to contribute those funds to a trust fund, life insurance contract, or annuity contract; to prohibit a seller of preneed services from sharing in the discharge of the responsibilities of the trustee, except for appointing an adviser; to require any payments received on a preneed contract written after April 30, 2002, to be deposited into an approved trust; to require preneed cemetery merchandise and services funds remain in trust until cancellation or fulfillment; to remove the requirement that certification of a responsible officer of a preneed cemetery authority be given under oath; and to require a cemetery authority to place funds collected for the construction of a mausoleum, columbarium, or below ground crypt into a preconstruction trust until such time as construction is complete.