HOUSE BILL No. 5797


     March 14, 2002, Introduced by Rep. Richner and referred to the Committee on Insurance and Financial Services.


        A bill to amend 1956 PA 218, entitled

   "The insurance code of 1956,"

   by amending section 2080 (MCL 500.2080), as amended by 1986 PA

   318.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1
             Sec. 2080.  (1) It  shall be  IS unlawful for any life or

 2
        accident insurer authorized to do business in this state to own,

 3
        manage, supervise, operate, or maintain a mortuary or undertaking

 4
        establishment, or to permit its officers, agents, or employees to

 5
        own or maintain  any such funeral  A MORTUARY or undertaking

 6
        establishment.

 7
             (2) Except as otherwise provided in subsection (6), it

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         shall be  IS unlawful for any life insurance, sick or funeral

 9
        benefit company, or any company, corporation, or association

10
        engaged in a similar business to contract or agree with any


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        funeral director, undertaker, or mortuary to the effect that

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         such  THE funeral director, undertaker, or mortuary shall con-

 3
        duct the funeral of any person insured by  such  THAT company,

 4
        corporation, or association.

 5
             (3) A funeral establishment, cemetery, or seller shall not

 6
        be licensed as an insurance agent under chapter 12 other than as

 7
        a limited licensee pursuant to this subsection and chapter 12.  A

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        funeral establishment, cemetery, or seller shall not be a limited

 9
        life insurance agent unless that funeral establishment, cemetery,

10
        or seller provides a written assurance to the commissioner at the

11
        time of application for the limited licensure and with each

12
        LICENSE renewal  thereof  that he or she has read and understands

13
        the conditions contained in subsection (9) and agrees to comply

14
        with those conditions.  A person licensed as a limited life

15
        insurance agent under this subsection and chapter 12  shall be

16
        IS authorized and licensed to sell only associated life insurance

17
        policies or annuity contracts and  shall  IS not  be  authorized

18
        or licensed to sell any other type of insurance policy or annuity

19
        contract.  A person licensed as a limited life insurance agent

20
        under this subsection and chapter 12 to sell associated life

21
        insurance policies or annuity contracts shall not sell cemetery

22
        goods or services or funeral goods or services unless all of the

23
        conditions provided in subsection (9) are met.  A person licensed

24
        as a life insurance agent, other than a limited life insurance

25
        agent, shall not sell cemetery goods or services or funeral goods

26
        or services or be associated with a funeral establishment,

27
        cemetery, or seller.  Notwithstanding any other provision in this



   03119'01                                   3

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        act, a funeral establishment, cemetery, or seller may advise

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        customers or potential customers of the availability of life

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        insurance, the proceeds of which may be assigned pursuant to

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        subsection (6), and may provide application forms and other

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        information in regard to  such  THAT life insurance.   If an

 6
        application form is provided, the funeral establishment, ceme-

 7
        tery, or seller shall also provide to the person a list annually

 8
        prepared by the commissioner setting forth the life insurance

 9
        companies offering in Michigan associated life insurance policies

10
        or annuity contracts.  The list shall include the name, address,

11
        and telephone number of an agent for each of the life insurance

12
        companies listed.  The  list also  APPLICATION shall include a

13
        statement that a person who is insured under any life insurance

14
        policy or annuity contract may assign all or a portion of the

15
        proceeds, not to exceed the amount provided in subsection (6)(g),

16
        of the existing life insurance policy or annuity contract for the

17
        payment of funeral services and goods or cemetery services or

18
        goods to any funeral establishment, cemetery, or seller  which

19
        THAT has accepted any other assignment of an associated life

20
        insurance policy or annuity contract during that calendar year.

21
        The funeral establishment, cemetery, or seller shall accept an

22
        assignment on the proceeds from any associated or nonassociated

23
        life insurance policy or annuity contract pursuant to

24
        subsection (6), and this requirement on the funeral establish-

25
        ment, cemetery, or seller shall be set forth in the statement

26
        prepared by the  insurance  commissioner.  The assignor or the

27
        person or persons legally entitled to make funeral arrangements



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        for the person whose life was insured may contract with the

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        funeral establishment, cemetery, or seller of his or her choice

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        for the rendering of the funeral goods or services or cemetery

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        goods or services.  Each associated life insurance policy or

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        annuity contract delivered or issued for delivery in this state

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        shall have a death benefit that is sufficient to cover the ini-

 7
        tial contract price of the cemetery goods or services or funeral

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        goods or services and that increases at an annual rate of not

 9
        less than the consumer price index.

10
             (4) A person shall not be designated as the beneficiary in

11
        any policy of life or accident insurance whereby the beneficiary,

12
        directly or indirectly, shall, in return for all or a part of the

13
        proceeds of  such  THE policy of insurance, furnish cemetery

14
        services or goods or funeral services or goods in connection

15
         therewith  WITH THE POLICY.

16
             (5) Except as otherwise provided in subsection (6), it

17
         shall be  IS unlawful for any life or accident, or sick or

18
        funeral benefit company, or any person, company, corporation, or

19
        association, to offer or furnish goods or services or anything

20
        but money to its insureds or to his or her heirs, representa-

21
        tives, attorneys, relatives, associates, or assigns in any con-

22
        nection with, or by way of encumbrance, assignment, payment, set-

23
        tlement, satisfaction, discharge, or release of any insurance

24
        policy.  However, this subsection  shall  DOES not prohibit any

25
        company, corporation, or association from furnishing medical,

26
        surgical, or hospital service.





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             (6) Notwithstanding any other provision in this act, a life

 2
        insurer may write a life insurance policy or annuity contract

 3
         which is  subject to an assignment of the proceeds of the insur-

 4
        ance policy or annuity contract as payment for cemetery services

 5
        or goods or funeral services or goods as provided in this subsec-

 6
        tion regardless of the relationship between the life insurer and

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        the assignee.  An assignment of the proceeds of the insurance

 8
        policy or annuity contract pursuant to this subsection shall be

 9
        in writing on a form approved by the commissioner.  A predeath

10
        assignment of the proceeds of a life insurance policy or annuity

11
        contract as payment for cemetery or funeral services or goods is

12
        void unless all of the following conditions and criteria are

13
        met:

14
             (a) The assignment is an inseparable part of the contract

15
        for the cemetery services or goods or funeral services or goods

16
        for which the assigned proceeds serve as payment.

17
             (b) The assignment is revocable by the assignor, assignor's

18
        successor, or if the assignor is the insured by the representa-

19
        tive of the insured's estate prior to the provision of the ceme-

20
        tery services or goods or funeral services or goods.

21
             (c) The contract for funeral services or goods or cemetery

22
        services or goods and the assignment provide that upon revocation

23
        of the assignment, the contract for the cemetery services or

24
        goods or funeral services or goods is revoked and cemetery serv-

25
        ices or goods or funeral services or goods may be obtained from

26
        any cemetery, funeral establishment, or seller.





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             (d) The assignment contains the following disclosure in

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        boldfaced type:

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             "This assignment may be revoked by the assignor or

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        assignor's successor or, if the assignor is also the insured and

 5
        deceased, by the representative of the insured's estate before

 6
        the rendering of the cemetery services or goods or funeral serv-

 7
        ices or goods.  If the assignment is revoked, the death benefit

 8
        under the life insurance policy or annuity contract shall be paid

 9
        in accordance with the beneficiary designation under the insur-

10
        ance policy or annuity contract."

11
             (e) The assignment provides for all of the following:

12
             (i) That the actual price of the cemetery services or goods

13
        or funeral services or goods delivered at the time of death may

14
        be more than or less than the price set forth in the assignment.

15
             (ii) For the assignment of an associated life insurance

16
        policy or annuity contract, that any increase in the price of the

17
        cemetery services or goods or funeral services or goods shall not

18
        exceed the ultimate death benefit under the life insurance policy

19
        or annuity contract.

20
             (iii) For the assignment of a nonassociated life insurance

21
        policy or annuity contract, that any increase in the price of the

22
        cemetery services or goods or the funeral services or goods shall

23
        not exceed the consumer price index or the retail price list in

24
        effect when the death occurs, whichever is less.

25
             (iv) That if the ultimate death benefit under a life insur-

26
        ance policy or annuity contract exceeds the price of the cemetery

27
        services or goods or funeral services or goods at the time of



   03119'01                                   7

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        performance, the excess amount shall be distributed to the

 2
        beneficiary designated under the life insurance policy or annuity

 3
        contract or the insured's estate.

 4
             (v) That any addition to or modification of the contract for

 5
        cemetery services or goods or funeral services or goods does not

 6
        revoke the assignment or the contract for the cemetery services

 7
        or goods or funeral services or goods  which  THAT are not

 8
        affected by the addition or modification for which the assigned

 9
        proceeds are payment unless the assignment is revoked.

10
             (f) The assignment is limited to that portion of the pro-

11
        ceeds of the life insurance policy or annuity contract  which

12
        THAT is needed to pay for the cemetery services or goods or

13
        funeral services or goods for which the assignor has contracted.

14
             (g) In the case of an associated life insurance policy or

15
        annuity contract, the death benefit of the life insurance policy

16
        or annuity contract  which  THAT is subject to the assignment

17
        does not exceed $5,000.00 when the first premium payment is made

18
        on the life insurance policy or annuity contract.  In the case of

19
        a nonassociated life insurance policy or annuity contract, the

20
        initial amount of proceeds assigned does not exceed $5,000.00.

21
        The maximum amounts in this subdivision shall be adjusted annu-

22
        ally in accordance with the consumer price index.

23
             (h) The assignment shall contain the dispute resolution

24
        rights  set forth  in subsection (8).  After the death of the

25
        insured but before the cemetery services or goods or funeral

26
        services or goods are provided, the funeral establishment,

27
        cemetery, or seller shall provide to a representative of the



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        insured's estate a separate document entitled, "dispute

 2
        resolution disclosure statement," which shall clearly set forth

 3
        the dispute resolution rights  set forth  in subsection (8).  The

 4
        dispute resolution disclosure statement shall be filed with the

 5
        commissioner and shall be considered approved unless disapproved

 6
        within 30 days after the submission.  The language used to  set

 7
        forth  DESCRIBE the dispute resolution rights in subsection (8)

 8
        shall be written in a manner calculated to be understood by a

 9
        person of ordinary intelligence.

10
             (i) The assignor and not the assignee is responsible for

11
        making the premium payments due on the life insurance policy or

12
        annuity contract.  This subdivision does not apply to an insur-

13
        ance agent when acting as a fiduciary pursuant to section 1207.

14
             (j) After the death of the insured but before the cemetery

15
        services or goods or funeral services or goods are provided, the

16
        representative of the insured's estate is provided with a current

17
        price list for the cemetery services or goods or funeral services

18
        or goods provided pursuant to the assignment.

19
             (k) At the time the assignment is made, the assignee com-

20
        plies with the price disclosure rules of the federal trade com-

21
        mission prescribed in 16 C.F.R.   ,  part 453, whether or not the

22
        rules by their own terms apply to the offering.

23
             (l) At the time the assignment is made, the assignor certi-

24
        fies that the insured does not have in effect other life insur-

25
        ance policies or annuity contracts that have been assigned as

26
        payment for cemetery goods or services or funeral goods or

27
        services  which  THAT together with the additional assignment



   03119'01                                   9

 1
        would have an aggregate face value in excess of the limitation

 2
        provided in subdivision  (h)  (G).

 3
             (m) For the assignment of a nonassociated life insurance

 4
        policy or annuity contract, the assignment complies with both of

 5
        the following:

 6
             (i) The assignment is sufficient to cover the initial con-

 7
        tract price of the cemetery goods or services or funeral goods or

 8
        services.

 9
             (ii) The assignment provides that any increase in the price

10
        of the cemetery services or goods or the funeral services or

11
        goods shall not exceed the consumer price index or the retail

12
        price list in effect when the death occurs, whichever is less.

13
             (7) An insurer or an insurance agent shall not make a false

14
        or misleading statement, oral or written, regarding an assignment

15
        subject to subsection (6) or regarding the rights or obligations

16
        of any party or prospective party to  such an  THAT assignment.

17
        An insurer or an insurance agent shall not advertise or promote

18
        an assignment subject to subsection (6) in a manner  which  THAT

19
        is false, misleading, deceptive, or unfair.  The commissioner

20
        shall promulgate rules regulating the solicitation of plans pro-

21
        moting assignments subject to subsection (6) to protect against

22
        solicitations  which  THAT are intimidating, vexatious, fraudu-

23
        lent, or misleading, or which take unfair advantage of a person's

24
        ignorance or emotional vulnerability.

25
             (8) After the cemetery services or goods or funeral services

26
        or goods are provided, the funeral establishment, cemetery, or

27
        seller shall provide to a representative of the insured's estate



   03119'01                                  10

 1
        a statement to be signed by the representative of the insured's

 2
        estate authorizing the release of the assignment proceeds for the

 3
        payment of the cemetery services or goods or funeral services or

 4
        goods.  The insurer shall release to the funeral establishment,

 5
        cemetery, or seller the assignment proceeds upon receipt of the

 6
        authorization statement signed by a representative of the

 7
        insured's estate.  If a representative of the insured's estate

 8
        fails to sign the authorization statement, the following shall

 9
        take place:

10
             (a) The funeral establishment, cemetery, or seller shall

11
        provide the representative of the insured's estate with a dispute

12
        resolution notice, a copy of which is to be sent to the insurer

13
        and the  insurance  commissioner that states all of the

14
        following:

15
             (i) That the funeral establishment, cemetery, or seller has

16
        provided the cemetery services or goods or funeral services or

17
        goods.

18
             (ii) That a representative of the insured's estate has

19
        refused to authorize the insurer to release the assignment pro-

20
        ceeds for the payment of the cemetery services or goods or

21
        funeral services or goods.

22
             (iii) That a representative of the insured's estate may seek

23
        arbitration to resolve the payment dispute.

24
             (b) Upon the receipt of the dispute resolution notice

25
        described in subdivision (a), the insurer shall retain the

26
        assignment proceeds for 30 days.  The insurer shall release the

27
        assignment proceeds to the funeral establishment, cemetery, or



   03119'01                                  11

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        seller if after the expiration of the 30 days the insurer is not

 2
        informed that arbitration proceedings have been commenced, or

 3
        pursuant to the award of the arbitrator.

 4
             (c) The funeral establishment, cemetery, seller, or a repre-

 5
        sentative of the insured's estate may commence arbitration pro-

 6
        ceedings to determine the disposition of the assignment

 7
        proceeds.  Arbitration shall be conducted pursuant to the rules

 8
        and procedures of the American arbitration association.  Expenses

 9
        of the arbitration shall be shared equally by the insured's

10
        estate and the assignee unless otherwise ordered by the

11
        arbitrator.

12
             (d) Nothing in this subsection  shall limit  LIMITS the

13
        right of any party involved in the payment dispute to seek other

14
        recourse permitted by law.

15
             (9) A life insurance agent shall not sell or solicit the

16
        sale of a life insurance policy or annuity contract with the

17
        intention of having the purchaser assign the proceeds of the

18
        policy or contract to a funeral establishment, cemetery, or

19
        seller with which the agent is associated unless all of the fol-

20
        lowing conditions are met:

21
             (a) The agent  shall disclose  DISCLOSES in writing to the

22
        purchaser the nature of his or her association with the funeral

23
        establishment, cemetery, or seller and that both the funeral

24
        establishment, cemetery, or seller and the agent will or may

25
        profit from the transaction, if that is the case.

26
             (b)  A  IF THE funeral establishment, cemetery, or seller

27
         which  accepts assignments pursuant to subsection (6),  shall



   03119'01                                  12

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        also offer  IT ALSO OFFERS to sell or provide cemetery goods or

 2
        services or funeral goods or funeral services pursuant to prepaid

 3
        funeral contracts as provided in the prepaid funeral contract

 4
        funding act, 1986 PA 255, MCL 328.211 TO 328.235, or pursuant to

 5
        the trust provisions of the cemetery regulation act,  Act No. 251

 6
        of the Public Acts of 1968, being sections 456.521 to 456.543 of

 7
        the Michigan Compiled Laws  1968 PA 251, MCL 456.521 TO 456.543.

 8
             (c) If the contemplated assignment is to be made to pay the

 9
        cost of cemetery goods or services or funeral goods or funeral

10
        services, the agent  shall disclose  DISCLOSES in writing to the

11
        purchaser that the cemetery goods or services or funeral goods or

12
        services may also be purchased prior to death by making payment

13
        directly to a funeral establishment, cemetery, or seller who will

14
        hold funds in escrow for the benefit of the purchaser pursuant to

15
        the prepaid funeral contract funding act, 1986 PA 255, MCL

16
        328.211 TO 328.235, or in trust pursuant to the provisions of the

17
        cemetery regulation act,  Act No. 251 of the Public Acts of 1968

18
        1968 PA 251, MCL 456.521 TO 456.543.  The written disclosure

19
        shall also state that upon cancellation of the prepaid funeral

20
        contract, the purchaser is entitled to a refund of at least 90%

21
        of the principal and income earned.

22
             (d) The sale of cemetery goods or services or funeral goods

23
        or services  shall  IS not  be  conditioned on the purchaser

24
        buying or agreeing to buy a life insurance policy or annuity con-

25
        tract or on the assignment of the proceeds of the policy or con-

26
        tract to that funeral establishment, cemetery, or seller.





   03119'01                                  13

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             (e) The sale of a life insurance policy or annuity contract

 2
         shall  IS not  be  conditioned on the purchaser buying or

 3
        agreeing to buy cemetery goods or services or funeral goods or

 4
        services from the funeral establishment, cemetery, or seller with

 5
        which the agent is associated or on the assignment of the pro-

 6
        ceeds of the policy or contract to that funeral establishment,

 7
        cemetery, or seller.

 8
             (f) A discount from the current price of cemetery goods or

 9
        services or funeral goods or services  shall  IS not  be  offered

10
        as an inducement to purchase or assign a life insurance policy or

11
        annuity contract.

12
             (g) The life insurance policy or annuity contract sold by

13
        the agent may be canceled by the purchaser within 10 days after

14
        the receipt of the policy or annuity contract, in which event a

15
        full refund of all premiums shall be paid to the purchaser.

16
             (h) The agent  shall disclose  DISCLOSES in writing to the

17
        purchaser that the funeral establishment, cemetery, or seller

18
        with which the agent is associated will accept assignments of

19
        life insurance policies or annuity contracts sold by any other

20
        licensed agent.

21
             (10) The commissioner or any other person, in order to force

22
        compliance with subsection (6) or (7), may bring an action in a

23
        circuit court in any county in which the assignee or insurance

24
        agent or any other person has solicited or sold a life insurance

25
        policy or annuity contract that is assigned pursuant to

26
        subsection (6), whether or not that person has purchased the life

27
        insurance policy or annuity contract or is personally aggrieved



   03119'01                                  14

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        by a violation of this section.  The court may award damages and

 2
        issue equitable orders in accordance with the Michigan court

 3
        rules to restrain conduct in violation of this section.

 4
             (11) Any person violating any of the provisions of this sec-

 5
        tion  shall be deemed  IS guilty of a misdemeanor, and each vio-

 6
        lation  thereof shall be  IS a separate offense  and upon convic-

 7
        tion shall be punished  PUNISHABLE by a fine not exceeding

 8
        $1,000.00 or by imprisonment for not more than 6 months, or both.

 9
         such fine and imprisonment within the discretion of the courts.

10
             (12) In addition to the penalty provided in subsection (11),

11
        if, after a hearing conducted pursuant to the administrative pro-

12
        cedures act of 1969,  Act No. 306 of the Public Acts of 1969,

13
        being sections 24.201 to 24.328 of the Michigan Compiled Laws

14
        1969 PA 306, MCL 24.201 TO 24.328, the commissioner determines a

15
        person has violated this section, the commissioner may order the

16
        person to pay a civil fine of not more than $10,000.00 for each

17
        violation and may also impose other sanctions provided pursuant

18
        to chapter 12.  The money collected under this subsection shall

19
        be deposited in the funeral consumers education and advocacy

20
        fund.  The funeral consumers education and advocacy fund is cre-

21
        ated within the insurance bureau.  The fund shall be administered

22
        by the commissioner.  The money in the fund shall be used to do

23
        both of the following:

24
             (a) To promote the education of consumers with regard to the

25
        prearrangement and purchase of cemetery or funeral services or

26
        goods through the purchase and assignment of life insurance or

27
        annuity contracts.



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             (b) To provide legal assistance to persons who were injured

 2
        as a result of a violation of this section.

 3
             (13) For purposes of this section, a life insurance agent is

 4
        associated with a funeral establishment, cemetery, or seller if

 5
        any of the following apply:

 6
             (a) The agent is a funeral establishment, cemetery, or

 7
        seller.

 8
             (b) The agent owns an interest, directly or indirectly, in a

 9
        corporation or other entity  which  THAT holds an interest in a

10
        funeral establishment, cemetery, or seller.

11
             (c) The agent is an officer, employee, or agent of a funeral

12
        establishment, cemetery, or seller.

13
             (d) The agent is an officer, employee, or agent of a corpo-

14
        ration or other entity  which  THAT holds an interest, either

15
        directly or indirectly, in a funeral establishment, cemetery, or

16
        seller, or in a corporation or other entity  which  THAT holds an

17
        interest, directly or indirectly, in a corporation or other

18
        entity  which  THAT holds an interest in a funeral establishment,

19
        cemetery, or seller.

20
             (14) As used in this section:

21
             (a) "Associated life insurance policy or annuity contract"

22
        is a life insurance policy or annuity contract that is marketed,

23
        designed, and intended to be assigned as payment for cemetery

24
        goods or services or funeral goods or services.

25
             (b) "Casket" means any box or container consisting of 1 or

26
        more parts in which a dead human body is placed prior to

27
        interment, entombment, or cremation which may or may not be



   03119'01                                  16

 1
        permanently interred, entombed, or cremated with the dead human

 2
        body.  A permanent interment or entombment receptacle  which

 3
        THAT is designed or intended for use without a cemetery burial

 4
        vault or other outside container  shall  IS also  be  considered

 5
        a casket.

 6
             (c) "Catafalque" means an ornamental or decorative object or

 7
        structure  which  THAT is placed beneath, over, or around a

 8
        casket, vault, or a dead human body prior to final disposition of

 9
        the dead human body.

10
             (d) "Cemetery" means that term as defined in but not neces-

11
        sarily regulated under section 2 of the cemetery regulation act,

12
         Act No. 251 of the Public Acts of 1968, being section 456.522 of

13
        the Michigan Compiled Laws  1968 PA 251, MCL 456.522, or an offi-

14
        cer, agent, or employee  thereof  OF A CEMETERY.

15
             (e) "Cemetery burial vault or other outside container" means

16
        a box or container  which  THAT is used solely at the place of

17
        interment to permanently surround or enclose a casket and to sup-

18
        port the earth above the casket after burial.

19
             (f) "Cemetery goods" means land or interests in land,

20
        crypts, lawn crypts, mausoleum crypts, or niches that are sold by

21
        a cemetery.  In addition, cemetery goods shall include cemetery

22
        burial vaults or other outside containers, markers, monuments,

23
        urns, and merchandise items used for the purpose of memorializing

24
        a decedent and placed on or in proximity to a place of interment

25
        or entombment of a casket, catafalque, or vault, or to a place of

26
        inurnment  which are  sold by a cemetery.





   03119'01                                  17

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             (g) "Cemetery services" means those services customarily

 2
        performed by a cemetery.

 3
             (h) "Combination unit" means any product consisting of a

 4
        unit or a series of units  which  THAT are designed or intended

 5
        to be used together as both a casket and as a permanent burial

 6
        receptacle.

 7
             (i) "Consumer price index" means the annual average percen-

 8
        tage increase in the Detroit consumer price index for all items

 9
        for the prior 12-month period as reported by the United States

10
        department of labor and as certified by the commissioner.

11
             (j) "Funeral establishment" means a funeral establishment or

12
        a person who is engaged in the practice of mortuary science as

13
        those terms are defined in section 1801 of the occupational code,

14
         Act No. 299 of the Public Acts of 1980, being section 339.1801

15
        of the Michigan Compiled Laws  1980 PA 299, MCL 339.1801, or an

16
        officer, agent, or employee  thereof  OF THAT ESTABLISHMENT OR

17
        PERSON.

18
             (k) "Funeral goods" means items of merchandise  which  THAT

19
        will be used in connection with a funeral or an alternative to a

20
        funeral or final disposition of human remains including, but not

21
        limited to, caskets, other burial containers, combination units,

22
        and catafalques.  Funeral goods does not include cemetery goods.

23
             (l) "Funeral services" means services customarily performed

24
        by a person who is licensed pursuant to sections 1801 to 1812 of

25
        the occupational code,  Act No. 299 of the Public Acts of 1980,

26
        being sections 339.1801 to 339.1812 of the Michigan Compiled

27
        Laws  1980 PA 299, MCL 339.1801 TO 339.1812.  Funeral services



   03119'01                                  18

 1
         includes, but is  INCLUDE, BUT ARE not limited to, care of human

 2
        remains, embalming, preparation of human remains for final dispo-

 3
        sition, professional services relating to a funeral or an alter-

 4
        native to a funeral or final disposition of human remains, trans-

 5
        portation of human remains, limousine services, use of facilities

 6
        or equipment for viewing human remains, visitation, memorial

 7
        services, or services  which  THAT are used in connection with a

 8
        funeral or alternative to a funeral, coordinating or conducting

 9
        funeral rites or ceremonies, and other services provided in con-

10
        nection with a funeral, alternative to a funeral, or final dispo-

11
        sition of human remains.

12
             (m) "Nonassociated life insurance policy or annuity

13
        contract" means a life insurance policy or annuity contract that

14
        is not marketed to be assigned, designed to be assigned, or

15
        intended to be assigned as payment for cemetery goods or services

16
        or funeral goods or services.

17
             (n) "Representative of insured's estate" means the person or

18
        persons legally entitled to make the funeral arrangements for the

19
        person whose life was insured.

20
             (o) "Seller" means a person who offers to sell cemetery

21
        goods or services or funeral goods or services or any agent,

22
        officer, or employee  thereof  OF THAT PERSON.













   03119'01          Final page.                            DKH