Senate Bill sb1610
CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 2001 SB 1610
By Senators Latvala, Wasserman Schultz, Lee, Sullivan and
Mitchell
19-927-01 See HB
1 A bill to be entitled
2 An act relating to preneed funeral contracts;
3 repealing s. 497.417(5), F.S., to delete the
4 authority of certificateholders offering
5 preneed funeral merchandise and services to
6 revest title to trust assets by posting a bond
7 or using other forms of security or insurance;
8 repealing ss. 497.423, 497.425, F.S.; providing
9 for future repeal of provisions authorizing
10 financial responsibility alternatives to the
11 placing of preneed funeral contract proceeds in
12 trust; providing for continued validity of
13 surety bonds issued prior to the repeal date
14 and prohibiting the use of bonds or other forms
15 of security or insurance after that date;
16 repealing ss. 497.337(2)(c), 497.409(2),
17 497.427, F.S.; providing for future repeal of
18 provisions relating to delivery requirements
19 for manufacturers of outer burial receptacles,
20 preneed contract disclosure requirements, and
21 proof of compliance with the law with respect
22 to existing merchandise trust funds,
23 respectively, to conform; amending ss. 497.413,
24 497.429, F.S.; conforming provisions; providing
25 effective dates.
26
27 Be It Enacted by the Legislature of the State of Florida:
28
29 Section 1. Subsection (5) of section 497.417, Florida
30 Statutes, is repealed.
31
1
CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 2001 SB 1610
19-927-01 See HB
1 Section 2. Paragraph (c) of subsection (1) of section
2 497.429, Florida Statutes, is amended to read:
3 497.429 Alternative preneed contracts.--
4 (1) Nothing in this chapter shall prevent the
5 purchaser and the certificateholder from executing a preneed
6 contract upon the terms stated in this section. Such
7 contracts shall be subject to all provisions of this chapter
8 except:
9 (c) Section 497.417(1) and, (3), and (5).
10 Section 3. Effective July 1, 2002, sections 497.423
11 and 497.425, Florida Statutes, are repealed.
12 Section 4. (1) All surety bonds entered into pursuant
13 to section 497.423, Florida Statutes, prior to July 1, 2002,
14 shall remain unimpaired until such time as all obligations
15 secured pursuant to section 497.423(7), Florida Statutes, are
16 fulfilled. A certificateholder may not secure any new preneed
17 contract entered into after July 1, 2002, with the alternative
18 method authorized by section 497.423, Florida Statutes, but
19 shall be required to deposit funds into trust pursuant to
20 section 497.417(1) or section 497.429, Florida Statutes.
21 (2) All surety bonds entered into pursuant to section
22 497.425, Florida Statutes, prior to July 1, 2002, shall remain
23 unimpaired until such time as all obligations secured pursuant
24 to said section are fulfilled, and the requirements of section
25 497.425(1), Florida Statutes, shall remain in effect until all
26 obligations secured by the bond are fulfilled. A
27 certificateholder may not secure any new preneed contract
28 entered into after July 1, 2002, with the alternative method
29 authorized by section 497.425, Florida Statutes, but shall be
30 required to deposit funds into trust pursuant to section
31 497.417(1) or section 497.429, Florida Statutes.
2
CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 2001 SB 1610
19-927-01 See HB
1 (3) This section shall take effect July 1, 2002.
2 Section 5. Effective July 1, 2002, paragraph (c) of
3 subsection (2) of section 497.337, subsection (2) of section
4 497.409, and section 497.427, Florida Statutes, are repealed.
5 Section 6. Effective July 1, 2002, subsections (2) and
6 (7) of section 497.413, Florida Statutes, are amended to read:
7 497.413 Preneed Funeral Contract Consumer Protection
8 Trust Fund.--
9 (2) Within 60 days after the end of each calendar
10 quarter, for each preneed contract written during the quarter
11 and not canceled within 30 days after the date of the
12 execution of the contract, each certificateholder, whether
13 funding preneed contracts by the sale of insurance or by
14 establishing a trust pursuant to s. 497.417 or s. 497.429,
15 shall remit the sum of $2.50 for each preneed contract having
16 a purchase price of $1,500 or less, and the sum of $5 for each
17 preneed contract having a purchase price in excess of $1,500;
18 and each certificateholder utilizing s. 497.423 or s. 497.425
19 shall remit the sum of $5 for each preneed contract having a
20 purchase price of $1,500 or less, and the sum of $10 for each
21 preneed contract having a purchase price in excess of $1,500.
22 (7) In any situation in which a delinquency proceeding
23 has not commenced, the board may, in its discretion, use the
24 trust fund for the purpose of providing restitution to any
25 consumer, owner, or beneficiary of a preneed contract or
26 similar regulated arrangement under this chapter entered into
27 after June 30, 1977. If, after investigation, the board
28 determines that a certificateholder has breached a preneed
29 contract by failing to provide benefits or an appropriate
30 refund, or that a provider, who is a former certificateholder
31 or an establishment which has been regulated under this
3
CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 2001 SB 1610
19-927-01 See HB
1 chapter or chapter 470, has sold a preneed contract and has
2 failed to fulfill the arrangement or provide the appropriate
3 refund, and such certificateholder or provider does not
4 provide or does not possess adequate funds to provide
5 appropriate refunds, payments from the trust fund may be
6 authorized by the board. In considering whether payments shall
7 be made or when considering who will be responsible for such
8 payments, the board shall consider whether the
9 certificateholder or previous provider has been acquired by a
10 successor who is or should be responsible for the liabilities
11 of the defaulting entity. With respect to preneed contracts
12 funded by life insurance, payments from the fund shall be
13 made: if the insurer is insolvent, but only to the extent that
14 funds are not available through the liquidation proceeding of
15 the insurer; or if the certificateholder is unable to perform
16 under the contract and the insurance proceeds are not
17 sufficient to cover the cost of the merchandise and services
18 contracted for. In no event shall the board approve payments
19 in excess of the insurance policy limits unless it determines
20 that at the time of sale of the preneed contract, the
21 insurance policy would have paid for the services and
22 merchandise contracted for. Such monetary relief shall be in
23 an amount as the board may determine and shall be payable in
24 such manner and upon such conditions and terms as the board
25 may prescribe. However, with respect to preneed contracts to
26 be funded pursuant to s. 497.417 or, s. 497.419, s. 497.423,
27 or s. 497.425, any restitution made pursuant to this
28 subsection shall not exceed, as to any single contract or
29 arrangement, the lesser of the gross amount paid under the
30 contract or 4 percent of the uncommitted assets of the trust
31 fund. With respect to preneed contracts funded by life
4
CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 2001 SB 1610
19-927-01 See HB
1 insurance policies, any restitution shall not exceed, as to
2 any single contract or arrangement, the lesser of the face
3 amount of the policy, the actual cost of the arrangement
4 contracted for, or 4 percent of the uncommitted assets of the
5 trust fund. The total of all restitutions made to all
6 applicants under this subsection in a single fiscal year shall
7 not exceed the greater of 30 percent of the uncommitted assets
8 of the trust fund as of the end of the most recent fiscal year
9 or $120,000. The department may use moneys in the trust fund
10 to contract with independent vendors pursuant to chapter 287
11 to administer the requirements of this subsection.
12 Section 7. Effective July 1, 2002, subsection (1) of
13 section 497.429, Florida Statutes, as amended by this act, is
14 amended to read:
15 497.429 Alternative preneed contracts.--
16 (1) Nothing in this chapter shall prevent the
17 purchaser and the certificateholder from executing a preneed
18 contract upon the terms stated in this section. Such
19 contracts shall be subject to all provisions of this chapter
20 except:
21 (a) Section 497.409(2).
22 (b) Section 497.415.
23 (c) Section 497.417(1) and (3).
24 (d) Section 497.419(1), (2), and (5).
25 (e) Section 497.421.
26 (f) Section 497.423.
27 (g) Section 497.425.
28 Section 8. Except as otherwise expressly provided in
29 this act, this act shall take effect July 1, 2001.
30
31
5
CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 2001 SB 1610
19-927-01 See HB
1 *****************************************
2 LEGISLATIVE SUMMARY
3 Repeals the authority of certificateholders offering
preneed funeral merchandise and services to revest title
4 to preneed contract trust assets by posting a bond or
using other forms of security or insurance. Provides for
5 future repeal of provisions authorizing financial
responsibility alternatives to the placing of preneed
6 funeral contract funds in trust. Provides for continued
validity of surety bonds issued prior to the repeal date,
7 and prohibits the use of bonds or other forms of security
or insurance after that date. (See bill for details.)
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
6
CODING: Words stricken are deletions; words underlined are additions.