Bill > S06143

This bill amends the General Business Law, Insurance Law, and Public Health Law in relation to preneed life insurance. The key provisions are: 1. Clarifies that any money paid to a funeral provider for preneed merchandise or services must be held in trust and deposited into an interest-bearing account within 10 business days, unless it is a premium paid to an insurance company for a preneed life insurance policy. 2. Defines "preneed life insurance" as a life insurance policy issued in combination with or as a guarantee for a prearrangement agreement for funeral goods and services. 3. Prohibits certain practices related to preneed life insurance policies, such as restricting the choice of funeral provider or permitting the seller to be the owner or beneficiary of the policy. It also caps the face value of preneed life insurance policies at $20,000 plus annual increases. 4. Requires detailed disclosures to be made to consumers at the time of application for a preneed life insurance policy, including information about the relationship between the parties, the policy's relationship to the prearrangement, and any penalties or restrictions. 5. Amends the Public Health Law to prohibit funeral directors from accepting certain commissions or valuable consideration related to the procurement of funeral patronage or the deposit of advance payment funds. The bill is set to expire on June 1, 2023, unless the provisions related to the Insurance Law and Public Health Law revert earlier.

Business and Industry

https://assembly.state.ny.us/leg/?default_fld=&bn=S06143&term=2017&Summary=Y&Actions=Y&Text=Y&Committee%26nbspVotes=Y&Floor%26nbspVotes=Y