CHAPTER 109

S.P. 240 - L.D. 676

An Act Regarding Mortuary Trusts

Be it enacted by the People of the State of Maine as follows:

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.__An insurer is deemed to have complied with this subsection if that insurer has mailed notice by first class mail to the last known mailing address of the assignee.

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.