The bill amends the Michigan Insurance Code of 1956, specifically section 2080, to enhance regulations governing life and accident insurers in relation to funeral establishments. It explicitly prohibits insurers from owning or managing funeral establishments and limits their ability to contract with funeral directors for services related to insured individuals. The bill also requires that funeral establishments, cemeteries, or sellers must not be licensed as insurance producers unless they provide written assurance of compliance with certain conditions. Additionally, it outlines the requirements for life insurance policies or annuity contracts that may be assigned for the payment of funeral or cemetery services, including stipulations on the sufficiency of death benefits and conditions for revoking assignments.

Key provisions include new requirements for disclosures related to insurance proceeds assignments, a dispute resolution process for payment disagreements, and mandates for life insurance producers to disclose their associations with funeral establishments. The bill also emphasizes consumer rights, requiring written disclosure regarding refunds for prepaid funeral contracts and ensuring that the sale of cemetery or funeral goods is not contingent upon the purchase of life insurance policies. Penalties for violations include misdemeanor charges and civil fines, with collected funds directed to a newly established Funeral Consumers Education and Advocacy Fund to support consumer education and legal assistance.

Statutes affected:
Senate Introduced Bill: 500.2080