Sub. S.B. 196

127th General Assembly

(H. Commerce and Labor)

Removes the requirement proposed in the As Passed by the Senate version that the Board of Embalmers and Funeral Directors have clear and convincing evidence that the funeral home is insolvent or is unable to perform its contractual obligations under a preneed funeral contract, in order to file a complaint requesting the appointment of a receiver for a funeral home whose license has been suspended or revoked or who employs a funeral director whose license has been suspended or revoked.

Adds that the Board may request sequestration of such a funeral home's assets when asking for the appointment of a receiver.

Expands the current law definition of unfair or deceptive acts or practices in the business of insurance to include making, issuing, circulating, or causing or permitting to be made, issued, or circulated any statement or representation that a life insurance policy or annuity is a contract for the purchase of funeral goods or services.

Maintains the current law requirement that the greater of two amounts specified in current law remain intact in a fund for a preneed cemetery merchandise and services contract until the death of the contract beneficiary and removes the authority proposed in the As Passed by the Senate version to allow a seller to choose between those two amounts.

Removes the authority proposed in the As Passed by the Senate version to add a federal savings bank to the list of entities that may serve as trustee of a preneed cemetery merchandise and services fund trust.

Exempts the requirement that health insurers cover routine patient care administered during a cancer clinical trial from the requirements regarding mandated health benefit review.

Maintains the provision proposed in the As Passed by the Senate version that specifies that the bill's provisions dealing with preneed funeral contracts take effect 90 days after the bill's effective date, but specifies that the bill's provisions concerning mandated health benefit review take effect at the earliest time permitted by law, which is the bill's effective date.

S0196-127.doc/ar 12/17/2008