Senate Bill S5854

                                 BILL NUMBER:  S5854

 TITLE OF BILL :  An act to amend chapter 557 of the laws of 2001
amending the general business law, the public health law and the
insurance law relating to clarifying provisions pertaining to pre-need
funeral services, in relation to the effectiveness thereof

 PURPOSE OR GENERAL IDEA OF BILL :

The purpose of this bill is to extend, until June 30, 2022, sections 3
and 4 of chapter 557 of the laws of 2001, which prohibit funeral
directors, undertakers and embalmers from accepting any consideration
from an insurer to sell, offer or promote pre-need funeral insurance,
and any insurer from paying such consideration.

 SUMMARY OF SPECIFIC PROVISIONS :

Current law prohibits funeral directors, undertakers and embalmers
from accepting any consideration (e.g., a commission or gift) from an
insurer to sell, offer or promote the sale of pre-need funeral
insurance policies, Insurers are also prohibited from paying any
commission or other consideration to any funeral director to induce
the sale of pre-need funeral insurance. These provisions are set to
expire on June 1, 2017. This bill would extend these provisions until
June 30, 2022.

              

 JUSTIFICATION :

Chapter 557 of the Laws of 2001, increased consumer protection for
funds used towards funeral goods and services. Specifically, it
requires all money used to purchase funeral merchandise to be held in
trust in an interest-bearing account, prohibits funeral directors from
accepting any consideration from an insurance company for the
promotion of an insurance policy that is payable at the death of the
insured for burial or funeral expenses, and prohibits any company from
giving any consideration to a funeral firm for the purpose of inducing
the sale of any contract or policy.

New York's funeral law is one of the strongest in the nation with
regard to the protection of consumer rights. Chapter 557 of the Laws
of 2001, increased the strength of New York's law. This provision has
been in effect since December 12, 2001, and this bill would extend
those protections until June 30, 2022.

 PRIOR LEGISLATIVE HISTORY :

New bill.

 FISCAL IMPLICATIONS FOR STATE :

None.

 EFFECTIVE DATE :
This act shall take effect immediately.