Bill > S06562

This bill relates to preneed insurance, which is a type of life insurance policy used to fund funeral and burial expenses. The bill modifies existing laws to provide more consumer protections and transparency in preneed life insurance transactions. Specifically, the bill defines "preneed life insurance" as a life insurance policy issued in connection with a prearrangement agreement for funeral goods and services, and establishes new disclosure requirements for such policies. The bill mandates that insurers provide detailed information to applicants before accepting their initial premium, including explanations about the policy's relationship to funeral prearrangements, potential penalties for policy changes or non-payment, the specific goods and services covered, and the right to cancel the policy within 10-30 days. Additionally, the bill prohibits certain practices, such as allowing the seller of the preneed life insurance to be named as the policy owner or beneficiary, and limits the face value of such policies to $20,000 with an annual percentage increase based on the Consumer Price Index. The bill aims to protect consumers by ensuring they fully understand the terms and implications of preneed life insurance policies and prevents potential abusive practices in the funeral service and insurance industries. The provisions of this bill will be in effect until June 1, 2030.

Business and Industry

https://www.nysenate.gov/legislation/bills/2025/S6562