REPRESENTATIVES G. Smith, Husted, Seitz, Flowers, Willamowski, Collier, Schaffer, Jolivette, Krupinski, Ogg, Evans, Stapleton, Hughes, McGregor, Reidelbach, Perry, Clancy, Carano, D. Miller, Lendrum, Coates, Sferra, Niehaus, Latell, Flannery, Distel, Cirelli, Roman, Strahorn, Redfern, Allen, Otterman, Sulzer, DeBose, Key, Schmidt, Salerno

To amend sections 3905.45 and 3905.451 of the Revised

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Code relative to insurance policies that are

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issued, sold, or assigned for the purpose of

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purchasing funeral or burial goods or services.

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BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section 1. That sections 3905.45 and 3905.451 of the Revised	5
Code be amended to read as follows:	6

Sec. 3905.45. No insurer engaged in the business of	7
providing(A) If an insurance policy has been issued, sold, or	8
assigned for the paymentpurpose of purchasing any funeral or	9
burial goods or services, the insurer shall not pay the benefits	10
of the insurance policy, including the cash surrender value, to	11
any funeral director or funeral home, licensed under Chapter 4717.	12
of the Revised Codeprovider of such goods or services, unless the	13
insurer, as a condition to paying the benefits of the insurance	14
policy, is provided byreceives from the funeral director or	15
funeral home withprovider a certified copy of the certificate of	16
death of the insured, or other evidence of death satisfactory to	17
the insurer, and a certificate of completion. The certificate of	18
completion shall be signed by the funeral director,provider and	19
shall certify that the funeral director or funeral homeprovider	20
has provideddelivered all the goods and performed all the	21
services contracted for, by, or on behalf of the insured.	22

(B) A provider of funeral or burial goods or services shall	23
not pledge, assign, transfer, borrow from, or otherwise encumber	24
an insurance policy described in division (A) of this section	25
prior to delivering all the goods and performing all the services	26
contracted for, by, or on behalf of the insured. However, a	27
provider may assign or otherwise transfer such a policy to another	28
provider of funeral or burial goods or services in conjunction	29
with the assumption by the other provider of the contractual	30
obligation to provide the goods or services.	31

Sec. 3905.451. The sale of aA life insurance policy that is	32
issued, sold, or assigned for the benefitspurpose of which are	33
payable to the provider ofpurchasing funeral or burial goods or	34
services as payment for these, and the contractual obligation to	35
provide the goods or services is, are not the sale of a preneed	36
funeral contract as defined insubject to section 1111.19 of the	37
Revised Code.	38

Section 2. That existing sections 3905.45 and 3905.451 of the	39
Revised Code are hereby repealed.	40