Bill > LD867

This bill introduces comprehensive changes to regulations surrounding pre-need funeral insurance and prearranged funeral services in Maine. The legislation defines "pre-need insurance" as a life insurance policy specifically designed to cover funeral and burial service costs, with the entire death benefit paid directly to the funeral establishment. The bill requires insurance producers to provide detailed disclosures to consumers when selling pre-need insurance, including information about the relationship between different parties involved, the nature of the insurance policy, a list of selected goods and services, pricing details, potential differences between insurance proceeds and actual funeral costs, and any sales commissions. The bill also establishes that the face amount of a pre-need insurance policy cannot exceed the maximum cost of contracted funeral services. Additionally, the legislation modifies existing rules about how funeral service funds can be deposited and managed, allowing for more flexibility in funding arrangements while maintaining consumer protections. The changes aim to increase transparency in the pre-need funeral insurance market, ensure consumers are fully informed about their funeral service arrangements, and provide clear guidelines for funeral establishments, insurance producers, and financial institutions handling these specialized insurance policies.

Health and Social Services

https://legislature.maine.gov/legis/bills/display_ps.asp?LD=867&snum=132