The act implements the recommendations of the department of regulatory agencies, as contained in the department's sunset review of preneed funeral contracts, as follows:
- Continues the regulation of preneed funeral contracts for 7 years, to September 1, 2029;
- Removes from statute the surety bond or net worth requirements for an applicant for a license to sell preneed funeral contracts and requires the commissioner of insurance (commissioner) to establish the requirements in rule;
- Allows the commissioner to investigate the books, records, and accounts of a contract seller without the requirement that the commissioner first receive a complaint or indication of noncompliance;
- Removes the fees for license renewal from statute and requires the commissioner to establish the fees in rule based on the cost of regulating the industry and the outstanding preneed contract obligations of the contract sellers;
- Declares money held in trust for a preneed contract is unclaimed and must be reported to the state treasurer for deposit into the unclaimed property trust fund at the earlier of: 3 years after the date on which the contract seller has knowledge of the death of the preneed contract beneficiary; the date the preneed contract beneficiary, if living, would have attained 115 years of age; or 65 years from the date that the preneed contract was executed; and
- Requires each funeral establishment, at the time of registration renewal, to attest to whether the funeral establishment sells preneed contracts and requires the director of the division of professions and occupations to enter into a memorandum of understanding with the commissioner to share information on funeral establishments that sell preneed contracts.
(Note: This summary applies to this bill as enacted.)