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.

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