To amend sections 3905.45 and 3905.451 of the Revised Code relative to insurance policies that are issued, sold, or assigned for the purpose of purchasing funeral or burial goods or services.

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

Sec. 3905.45.  No insurer engaged in the business of providing (A) If an insurance policy has been issued, sold, or assigned for the payment purpose of purchasing any funeral or burial goods or services, the insurer shall not pay the benefits of the insurance policy, including the cash surrender value, to any funeral director or funeral home, licensed under Chapter 4717. of the Revised Code provider of such goods or services, unless the insurer, as a condition to paying the benefits of the insurance policy, is provided by receives from the funeral director or funeral home with provider a certified copy of the certificate of death of the insured, or other evidence of death satisfactory to the insurer, and a certificate of completion. The certificate of completion shall be signed by the funeral director, provider and shall certify that the funeral director or funeral home provider has provided delivered all the goods and performed all the services contracted for, by, or on behalf of the insured.

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

Sec. 3905.451.  The sale of a A life insurance policy that is issued, sold, or assigned for the benefits purpose of which are payable to the provider of purchasing funeral or burial goods or services as payment for these, and the contractual obligation to provide the goods or services is, are not the sale of a preneed funeral contract as defined in subject to section 1111.19 of the Revised Code.

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 That existing sections 3905.45 and 3905.451 of the Revised Code are hereby repealed.