Under existing law, the Alabama Preneed Funeral and Cemetery Act provides for the regulation of the sale of preneed funeral or cemetery merchandise and services.
This bill would strengthen consumer protection and eliminate ambiguity in the requirements for the proper handling of preneed and cemetery endowment care funds.
This bill would provide further for the ability of the Commissioner of Insurance to deter violations and ensure compliance with the act.
This bill would grant the commissioner jurisdiction over any person unlawfully writing, or suspected of unlawfully writing, preneed contracts and would clarify the penalties for violations.
This bill would further clarify the requirement that any person selling funeral or cemetery merchandise or services on a preneed basis obtain a certificate of authority from the Department of Insurance.
This bill would specify which violations related to preneed sales, trust deposits, and collections are felonies.
This bill would increase, from a Class B to a Class A misdemeanor, all non-felony violations of the act.
This bill would authorize the commissioner to bring a civil action against any person or company violating the act and increase the recovery of funds on behalf of consumers.
This bill would clarify that a person who only sells preneed burial rights is not required to register as a preneed sales agent.
This bill would revise the annual application and renewal dates for persons holding preneed certificates of authority and would waive the requirement of filing annual financial statements under certain circumstances and upon written request to the commissioner.
This bill would require each certificate holder to file with the commissioner a quarterly report of all preneed contract and trust activity.
This bill would clarify the amount of a bond used as an alternative to a trusting requirement.
This bill would authorize the commissioner to use funds received from any source for purposes of enforcement.
This bill would clarify that funds received for funeral and cemetery merchandise placed in storage prior to death need not be placed in trust.
This bill would require certificate holders to satisfy additional requirements and to file with the commissioner a quarterly report of all preneed contract trust activity.
This bill would subject endowment cemetery authorities to the act.
This bill would require any person receiving funds from the sale of a preneed contract to contribute to a trust fund, life insurance contract, or annuity contract.
This bill would require that preneed cemetery merchandise and services funds remain in trust until cancellation or fulfillment of a preneed contract.
This bill would prohibit a person serving on a cemetery board of trustees from also serving as the trustee of an endowment care fund, with certain specified exceptions, and would require bonds on trustees, with certain specified exceptions.
This bill would define net income for purposes of an endowment care fund.
Amendment 621 of the Constitution of Alabama of 1901 prohibits a general law whose purpose or effect would be to require a new or increased expenditure of local funds from becoming effective with regard to a local governmental entity without enactment by a 2/3 vote unless: it comes within one of a number of specified exceptions; it is approved by the affected entity; or the Legislature appropriates funds, or provides a local source of revenue, to the entity for the purpose.
The purpose or effect of this bill would be to require a new or increased expenditure of local funds within the meaning of Amendment 621. However, the bill does not require approval of a local governmental entity or enactment by a 2/3 vote to become effective because it comes within one of the specified exceptions contained in Amendment 621.
Assigned Act No. 2014-216.
Signature Requested
Enrolled
Concurred in Second House Amendment
Marsh motion to Concur In and Adopt adopted Roll Call 792
Concurrence Requested
Motion to Read a Third Time and Pass adopted Roll Call 722
Motion to Adopt adopted Roll Call 721
Insurance Amendment Offered
Third Reading Passed
Read for the second time and placed on the calendar 1 amendment
Read for the first time and referred to the House of Representatives committee on Insurance
Engrossed
Motion to Read a Third Time and Pass adopted Roll Call 446
Bussman motion to Adopt adopted Roll Call 445
Bussman Amendment Offered
Bussman motion to Adopt adopted Roll Call 444
Banking and Insurance first Substitute Offered
Bussman motion to Adopt adopted Roll Call 443
Banking and Insurance Amendment Offered
Bussman motion to Table adopted Voice Vote
Banking and Insurance Amendment Offered
Third Reading Passed
Read for the second time and placed on the calendar with 1 substitute and 2 amendments
Read for the first time and referred to the Senate committee on Banking and Insurance
Source: Alabama Legislature