5.__Cotrustees.__This section may not be construed as prohibiting any person, including a payor, from serving as a mortuary cotrustee with the payee.

6.__Penalties.__Any person who violates this section is guilty of a Class E crime.__This section does not preclude prosecution or conviction under other applicable laws, including, but not limited to, disciplinary actions under this chapter.

Sec. 3. Application. That section of this Act that repeals and replaces the Maine Revised Statutes, Title 32, section 1401 applies to prearranged funeral or burial plan agreements entered into on or after the effective date of this Act.

SUMMARY

This bill updates the prearranged funeral service law originally enacted in 1959. The provisions in this bill reflect the recommendations of the Funeral Act Review Group, which was assembled by the Department of Professional and Financial Regulation to update the laws regarding prearranged funeral arrangements.

The bill changes one provision in the insurance laws to clarify that insurers may not contract with funeral service providers to solicit or sell policies. The bill updates terminology regarding financial institutions and credit unions and specifies permissible low-risk investments. The bill also enumerates board rulemaking requirements to include the format and content of trust agreements and service contracts, the establishment of reasonable transfer, revocation and account administration fees and inspection of trust agreements.