2004 Regular Session
To: Insurance
By: Representative Pierce
AN ACT TO AMEND SECTION 75-63-59, MISSISSIPPI CODE OF 1972, TO REQUIRE THAT CONTRACT SELLERS OF PRENEED FUNERAL SERVICES AND MERCHANDISE SHALL PLACE ONE HUNDRED PERCENT OF THE FUNDS RECEIVED FOR SUCH CONTRACTS IN A TRUST ACCOUNT IN A FINANCIAL INSTITUTION; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 75-63-59, Mississippi Code of 1972, is amended as follows:
75-63-59. (1) If the contract is funded by trust, the Secretary of State shall be given a copy of the trust document and shall be informed in writing as to how the assets of the trust are held. In the event of any change in the investments of the assets of the trust, or change in the trustee or trust institution, the Secretary of State shall be informed not less than thirty (30) days after the time such change occurs.
(2) Any trustee, other than a financial institution, shall not be the contract provider, the seller, or an officer or director of the contract provider if the contract provider is a corporation.
(3) Within twenty (20) days from the end of the month in which the funds were received, the contract seller shall place in a trust account in a financial institution as defined by this article one hundred percent (100%) of the funds received. * * *
(4) Reasonable annual trust fees including any income taxes owed to the State of Mississippi and/or the United States Treasury may be withheld from the earnings of the trust.
(5) At the time of death, if the contract provider provides the merchandise and services indicated in the contract, the contract provider shall furnish to the trustee a copy of the buyer's death certificate or proof of death and a letter of performance indicating that the contracted merchandise and services were provided by the contract provider to the contract insured. Upon receipt of the letter of performance and death certificate, or proof of death, the trustee shall pay to the contract provider all funds.
(6) If the contract provider does not furnish merchandise and services as provided in the pre-need contract, the trustee shall pay to the estate of the contract insured or the substitute provider not less than the amount deposited in trust, within ten (10) days from notification of the death of the contract insured.
SECTION 2. This act shall take effect and be in force from and after July 1, 2004.