CHAPTER 109
S.P. 240 - L.D. 676
Be it enacted by the People of the State of Maine as follows:
Sec. 1. 24-A MRSA §2420, sub-§3-A is enacted to read:
3-A. Upon receiving notice of a revocation of an assignment of a life insurance policy pursuant to this section, an insurer shall notify the assignee of the policy that the insured or owner has revoked the assignment. The insurer shall also notify the assignee if any cash value of the policy has been distributed at the time of revocation. Notice must be sent to the assignee within 30 days. An insurer is deemed to have complied with this subsection if that insurer has mailed notice by first class mail to the last known mailing address of the assignee.
Sec. 2. 32 MRSA §1401, sub-§1, as amended by PL 1999, c. 590, §1, is further amended by amending the first paragraph to read:
1. Plan requirements. Any Except as provided in subsection 1-A, any prearranged funeral or burial plan contracted or undertaken within this State must comply with the following.
Sec. 3. 32 MRSA §1401, sub-§1-A is enacted to read:
1-A. Plan funded with proceeds of life insurance policy. A prearranged funeral or burial plan agreement may be funded with proceeds of a life insurance policy in accordance with this subsection.
A. During a person's lifetime, a person or that person's legal representative may enter into an agreement that services will be performed or personal property will be delivered in connection with the disposition of that person's body after death by:
(1) Assigning the mortuary trustee as owner and beneficiary of a life insurance policy payable to the mortuary trustee upon that person's death; or
(2) Designating the mortuary trustee as a beneficiary of a life insurance policy payable to the mortuary trustee upon that person's death.
B. An agreement under paragraph A must be in writing and a copy must be furnished to the person or the person's legal representative by the mortuary trustee when the agreement is executed. The agreement may be revocable or irrevocable; however, if the agreement is irrevocable, there must be a provision to allow for the transfer of the trust account by the appointment of successor trustees. The agreement must clearly state terms providing for disposition of excess funds after funeral goods and services have been provided. The agreement must clearly state any fees that may be charged against the trust account. Fees must be reasonable, as defined by the board, and may be charged only:
(1) Upon transfer of a trust account by the appointment of a successor trustee;
(2) Upon revocation of the agreement if the agreement is revocable; and
(3) For the actual financial and tax administration of the trust account.
C. The mortuary trustee shall maintain a complete record of a trust account established under this subsection. The record must be available for inspection by the person, the person's legal representative, the commissioner's designee or an inspector for the board.
This subsection may not be construed to alter the terms of a life insurance policy or supersede any law governing the regulation of life insurance policies.
Effective September 13, 2003, unless otherwise indicated.
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