436.450. Insurance-funded preneed contract requirements.

MISSOURI STATUTES AND CODES

436.450. Insurance-funded preneed contract requirements.

Insurance-funded preneed contract requirements.

436.450. 1. An insurance-funded preneed contract shall comply withsections 436.400 to 436.520 and the specific requirements of this section.

2. A seller, provider, or any preneed agent shall not receive orcollect from the purchaser of an insurance-funded preneed contract anyamount in excess of what is required to pay the premiums on the insurancepolicy as assessed or required by the insurer as premium payments for theinsurance policy except for any amount required or authorized by thischapter or by rule. A seller shall not receive or collect anyadministrative or other fee from the purchaser for or in connection with aninsurance-funded preneed contract, other than those fees or amountsassessed by the insurer. As of August 29, 2009, no preneed seller,provider, or agent shall use any existing preneed contract as collateral orsecurity pledged for a loan or take preneed funds of any existing preneedcontract as a loan for any purpose other than as authorized by thischapter.

3. Payments collected by or on behalf of a seller for aninsurance-funded preneed contract shall be promptly remitted to the insureror the insurer's designee as required by the insurer; provided thatpayments shall not be retained or held by the seller or preneed agent formore than thirty days from the date of receipt.

4. It is unlawful for a seller, provider, or preneed agent to procureor accept a loan against any insurance contract used to fund a preneedcontract.

5. Laws regulating insurance shall not apply to preneed contracts,but shall apply to any insurance or single premium annuity sold with apreneed contract; provided, however, the provisions of this act* shall notapply to single premium annuities or insurance polices regulated bychapters 374, 375, and 376, RSMo, used to fund preneed funeral agreements,contracts, or programs.

6. This section shall apply to all preneed contracts including thoseentered into before August 28, 2009.

7. For any insurance-funded preneed contract sold after August 28,2009, the following shall apply:

(1) The purchaser or beneficiary shall be the owner of the insurancepolicy purchased to fund a preneed contract; and

(2) An insurance-funded preneed contract shall be valid andenforceable only if the seller or provider is named as the beneficiary orassignee of the life insurance policy funding the contract.

8. If the proceeds of the life insurance policy exceed the actualcost of the goods and services provided pursuant to the nonguaranteedpreneed contract, any overage shall be paid to the estate of thebeneficiary, or, if the beneficiary received public assistance, to thestate of Missouri.