Preneed funeral contracts; final expenses insurance. (HB2267)

Introduced By

Del. Harvey Morgan (R-Gloucester)


Passed Committee
Passed House
Passed Senate
Signed by Governor
Became Law


Preneed funeral contracts; final expenses insurance.  Requires an insurer issuing a life insurance policy, certificate, or annuity contract in which the face amount is primarily based on the actual or estimated cost of funeral goods or services, but is not linked to a preneed funeral contract, to utilize a bank, savings institution, or trust company located in the Commonwealth as trustee if the insurer holds the policy in a fiduciary capacity on behalf of the insured or places the policy in trust. Such a policy shall provide either that its face value will be adjusted annually by a factor equal to the Consumer Price Index or that it will have a death benefit at least equal to the premiums paid plus minimum interest or dividends. To meet this requirement, for the first 15 years interest or dividends shall be compounded annually at a rate of at least five percent, and thereafter at the legal rate of interest. The same provisions regarding the minimum interest or dividends are made applicable to life insurance policies or annuity contracts used to fund preneed funeral contracts. Under both types of insurance, the rate chosen shall be disclosed in the policy at the time the policy is issued. Money received pursuant to a preneed funeral contract that is not funded by a life insurance or annuity contract shall be deposited in a special account in a bank, savings institution, or trust company that is located in the Commonwealth. Such an institution is located in the Commonwealth if it has a main office or branch office in the Commonwealth where deposits are accepted, checks are paid, and money is lent. Read the Bill »


Bill Has Failed


01/12/2011Prefiled and ordered printed; offered 01/12/11 11100745D
01/12/2011Referred to Committee on Commerce and Labor
01/24/2011Assigned C & L sub: #1
01/27/2011Subcommittee recommends reporting with amendment(s) (6-Y 1-N)
02/03/2011Failed to report (defeated) in Commerce and Labor (7-Y 15-N) (see vote tally)
02/07/2011Impact statement from SCC (HB2267)