SB98 Alabama 2014 Session

Updated Feb 25, 2026

Summary

Primary Sponsor: Paul Bussman
Republican
Session: Regular Session 2014
Title: Funeral services, preneed, sales, further licensed and regulated by Insurance Department, criminal penalties for violations, Secs. 27-17A-2, 27-17A-3, 27-17A-10, 27-17A-11, 27-17A-12, 27-17A-13, 27-17A-14, 27-17A-18, 27-17A-22, 27-17A-23, 27-17A-25, 27-17A-31, 27-17A-32, 27-17A-34, 27-17A-40, 27-17A-42, 27-17A-44, 27-17A-47, 27-17A-50, 27-17A-55 am'd; Sec. 27-17A-11.1, 27-17A-57 added
Summary: SB98 tightens Alabama's Preneed Funeral and Cemetery Act to better protect consumers and ensure proper handling of preneed contracts and endowment care funds by expanding regulatory authority and strengthening penalties.
What This Bill Does
It gives the Insurance Commissioner broader power to deter violations, sue violators, and respond to unregistered preneed sellers; increases penalties for non-felony violations and creates new felonies for improper handling of preneed funds. It requires certificate holders to obtain and renew authority, file quarterly and semi-annual reports, maintain bonds or acceptable alternatives, and keep detailed records. It expands the rules to endowment care funds and cemetery authorities, imposes trustee bonding and conflict-of-interest restrictions, and sets deposit and trust requirements to protect contract funds.

Who It Affects
Consumers and beneficiaries of preneed contracts who will see stronger protections, clearer funding and trust requirements, and enhanced enforcement remedies if contract terms are broken or funds are mishandled.
Funeral establishments, cemetery authorities, third-party sellers, and preneed sales agents who must obtain certificates of authority, register agents, file regular financial and activity reports, adhere to bonding or alternative funding rules, and face stiffer penalties for violations.

Key Provisions
expands the commissioner’s enforcement power, allows civil actions against violators, and increases penalties for non-felony violations; clarifies penalties for preneed-related violations and widens jurisdiction over unlawful preneed writing.
Requires certificate holders to obtain/renew certificates of authority, file quarterly reports of preneed contracts and trust activity, and maintain bonds or alternative funding (surety bonds or letters of credit) in relation to trust requirements.
imposes new or strengthened trust/deposit rules, including specific deposit percentages for funeral and cemetery funds (e.g., 75% of certain purchase prices, 110% of wholesale costs for endowment care, 60% for outer burial containers and cemetery services, 100% for cash advances) and provides for quarterly valuations and annual audits of trusts.
Establishes and clarifies endowment care fund rules, including bonding of trustees, prohibitions on board members serving as endowment trustees in most cases, and requirements on net income use, investment powers, and annual examinations; authorizes the commissioner to examine cemetery authorities.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Funeral Services