436.455. Joint account-funded preneed contract requirements. - Missouri Statutes

Joint account-funded preneed contract requirements.

436.455. 1. A joint account-funded preneed contract shall complywith sections 436.400 to 436.520 and the specific requirements of thissection.

2. In lieu of a trust-funded or insurance-funded preneed contract,the seller and the purchaser may agree in writing that all funds paid bythe purchaser or beneficiary for the preneed contract shall be depositedwith a financial institution chartered and regulated by the federal orstate government authorized to do business in Missouri in an account in thejoint names and under the joint control of the seller and purchaser,beneficiary or party holding power of attorney over the beneficiary'sestate. There shall be a separate joint account established for eachpreneed contract sold or arranged under this section. Funds shall only bewithdrawn or paid from the account upon the signatures of both the sellerand the purchaser or under a pay-on-death designation or as required to payreasonable expenses of administering the account.

3. All consideration paid by the purchaser under a jointaccount-funded contract shall be deposited into a joint account asauthorized by this section within ten days of receipt of payment by theseller.

4. The financial institution shall hold, invest, and reinvest fundsdeposited under this section in other accounts offered to depositors by thefinancial institutions as provided in the written agreement of thepurchaser and the seller, provided the financial institution shall notinvest or reinvest any funds deposited under this section in term lifeinsurance or any investment that does not reasonably have the potential togain income or increase in value.

5. Income generated by preneed funds deposited under this sectionshall be used to pay the reasonable expenses of administering the accountas charged by the financial institution and the balance of the income shallbe distributed or reinvested upon fulfillment of the contract, cancellationor transfer pursuant to the provisions of this chapter.

6. Within fifteen days after a provider and a witness certify* to thefinancial institution in writing that the provider has furnished the finaldisposition, funeral, and burial services and facilities, and merchandiseas required by the preneed contract, or has provided alternative funeralbenefits for the beneficiary under special arrangements made with thepurchaser, the financial institution shall distribute the deposited fundsto the seller if the certification has been approved by the purchaser. Theseller shall pay the provider within ten days of receipt of funds.

7. Any seller, provider, or preneed agent shall not procure or accepta loan against any investment, or asset of, or belonging to a jointaccount. As of August 28, 2009, it shall be prohibited to use any existingpreneed contract as collateral or security pledged for a loan, or takepreneed funds of any existing preneed contract as a loan or for any purposeother than as authorized by this chapter.

(L. 2009 S.B. 1)

*Word "certifies" appears in original rolls.