Current Status Bill Number:463 Ratification Number:107 Act Number:67 Type of Legislation:General Bill GB Introducing Body:Senate Introduced Date:19950208 Primary Sponsor:Passailaigue All Sponsors:Passailaigue Drafted Document Number:Passailaigue\RES9623.ELP Date Bill Passed both Bodies:19950601 Date of Last Amendment:19950530 Governor's Action:S Date of Governor's Action:19950612 Subject:Funeral directors, life insurers
Body Date Action Description Com Leg Involved
______ ________ _______________________________________ _______ ____________
------ 19950612 Act No. A67
------ 19950612 Signed by Governor
------ 19950606 Ratified R107
Senate 19950601 Concurred in House amendment,
enrolled for ratification
House 19950531 Read third time, returned to Senate
with amendment
House 19950530 Amended, read second time
House 19950517 Objection withdrawn by Representative Vaughn
Tripp
House 19950511 Objection by Representative Carnell
Spearman
Tripp
Stille
P. Harris
Vaughn
House 19950511 Reconsidered vote whereby
debate was adjourned until
Tuesday, 19950606
House 19950511 Debate adjourned until
Tuesday, 19950606
House 19950504 Objection withdrawn by Representative Easterday
House 19950504 Debate adjourned until
Thursday, 19950511
House 19950503 Debate adjourned
House 19950427 Debate adjourned
House 19950427 Objection withdrawn by Representative Carnell
Vaughn
Tripp
Stille
House 19950426 Objection withdrawn by Representative Seithel
House 19950419 Objection withdrawn by Representative Herdklotz
House 19950412 Objection withdrawn by Representative Limehouse
Richardson
House 19950412 Objection withdrawn by Representative Cooper
J. Young
House 19950411 Objection by Representative Richardson
Tripp
Vaughn
Easterday
Herdklotz
McAbee
Cooper
Seithel
Limehouse
J. Young
Townsend
Stille
Carnell
House 19950405 Debate adjourned until
Tuesday, 19950411
House 19950330 Committee report: Favorable with 27 H3M
amendment
House 19950308 Introduced, read first time, 27 H3M
referred to Committee
Senate 19950307 Read third time, sent to House
Senate 19950301 Read second time
Senate 19950228 Polled out of Committee: Favorable 08 SG
Senate 19950208 Introduced, read first time, 08 SG
referred to Committee
View additional legislative information at the LPITS web site.
(A67, R107, S463)
AN ACT TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 32-7-95 SO AS TO PROVIDE THAT PROHIBITIONS AGAINST PRENEED FUNERAL CONTRACT SOLICITING AND ADVERTISING APPLY TO FUNERAL DIRECTORS ACTING AS AGENTS FOR A LIFE INSURER AND TO THE LIFE INSURER; TO AMEND SECTION 32-7-20, RELATING TO PRENEED FUNERAL CONTRACTS, SO AS TO PROVIDE THAT A FUNERAL DIRECTOR EMPLOYED AS A LIFE INSURANCE AGENT ONLY MAY ACT AS AN AGENT IN CONNECTION WITH THE FUNDING OF A PRENEED FUNERAL CONTRACT; TO AMEND SECTION 32-7-25, RELATING TO IRREVOCABLE PRENEED FUNERAL CONTRACTS, SO AS TO FURTHER REGULATE PRENEED FUNERAL CONTRACT AGREEMENTS; TO AMEND SECTION 32-7-35, RELATING TO TRANSFER OF PRENEED FUNERAL CONTRACTS, SO AS TO PROVIDE CONDITIONS FOR TRANSFER OF SUCH CONTRACTS FUNDED BY AN INSURANCE POLICY; TO AMEND SECTION 38-55-310, RELATING TO THE PROHIBITION AGAINST A LIFE INSURER OPERATING AN UNDERTAKING BUSINESS, SO AS TO PROVIDE AN EXCEPTION; AND TO AMEND SECTION 38-55-330, RELATING TO THE PROHIBITION AGAINST A FUNERAL DIRECTOR BEING LICENSED AS A LIFE INSURANCE AGENT, SO AS TO DELETE THIS PROHIBITION, AND TO PROVIDE CONDITIONS WITH WHICH A FUNERAL DIRECTOR MUST COMPLY WHEN LICENSED AS A LIFE INSURANCE AGENT.
Be it enacted by the General Assembly of the State of South Carolina:
Advertising and soliciting prohibitions apply
SECTION 1. Chapter 7, Title 32 of the 1976 Code is amended by adding:
"Section 32-7-95. The prohibitions of Section 32-7-90 as to solicitations and advertising relating to preneed funeral contracts apply equally to a funeral director licensed under this title as an agent for a life insurer as well as to the life insurer doing business in this State."
Insurance code provisions apply
SECTION 2. Section 32-7-20(E) of the 1976 Code is amended to read:
"(E) Subsections (A), (B), (C), and (D) do not apply to contracts for funeral service or merchandise funded by insurance policies which are otherwise regulated by law; however, Section 38-55-330 governs the conduct of a licensed funeral director employed by a licensed funeral home in South Carolina, except a licensed funeral director employed by a licensed funeral home owned by a company not chartered in the United States, who also is licensed as an agent for a life insurer doing business in this State."
Irrevocable trust funded preneed contract
SECTION 3. Section 32-7-25 of the 1976 Code is amended to read:
"Section 32-7-25. The contracts governed by the provisions of this chapter may be made irrevocable at the option of the purchaser. If the purchaser selects an irrevocable contract he must be allowed thirty days to examine the contract. Within that period, the purchaser may revoke his decision to enter this contract and all monies paid by the purchaser must be refunded. An irrevocable trust funded preneed funeral contract executed under Chapter 7 of Title 32 may not be converted to an insurance funded preneed funeral contract. If a premium is paid on an insurance funded preneed irrevocable contract and the contract is revoked within thirty days, the full premium must be refunded."
Conditions for contract transfer
SECTION 4. Section 32-7-35 of the 1976 Code is amended to read by adding at the end:
"A preneed funeral contract, whether revocable or irrevocable, funded by an insurance policy, may be transferred to another provider only at the prior written request of the purchaser or the beneficiary if the purchaser dies before the beneficiary or pursuant to Section 32-7-45. The selling provider may not collect, charge, or receive a fee in connection with this transfer of a preneed funeral contract funded by an insurance policy. An irrevocable preneed funeral contract funded by an insurance policy may be transferred to another provider only at the prior written request of the purchaser or the beneficiary if the purchaser dies before the beneficiary or pursuant to Section 32-7-45."
Exception to prohibition
SECTION 5. Section 38-55-310 of the 1976 Code is amended to read:
"Section 38-55-310. It is unlawful for a life insurer, except a fraternal benefit association licensed to do business in this State, to own, manage, supervise, operate, or maintain a mortuary or undertaking establishment or to permit its officers, agents, or employees to own, operate, or maintain a funeral or undertaking business, except as may be authorized under Section 38-55-330."
Prohibition removed
SECTION 6. Section 38-55-330 of the 1976 Code is amended to read:
"Section 38-55-330. A licensed funeral director employed by a licensed funeral home in South Carolina may be licensed as an agent for a life insurer doing business in this State. However, a funeral director licensed under this section may act as an agent for a life insurer only in connection with the funding of a preneed funeral contract under Chapter 7 of Title 32. The amount of an insurance policy sold by a licensed funeral director licensed under this section may not exceed the amount of the preneed funeral contract as defined in Section 32-7-10(3). In addition to the filing and approval requirements of Section 38-61-20, a life insurer must file a sample policy to fund a preneed funeral contract with the South Carolina Board of Funeral Service, and before the policy can be marketed in this State the board must verify that the policy is consistent with Title 32, Chapter 7. The board also shall maintain a list of all funeral directors licensed as insurance agents, the insurer each director represents, and the type of policy each director is licensed to sell. Except for a funeral director licensed under this title, no insurance agent, as defined in Section 38-1-20, or person, as defined in Section 38-1-20, shall sell any policy, as defined in Section 38-1-20, which has for its purposes the funding of any funeral services, or the furnishing or delivery of personal property, merchandise, services of any nature in connection with the final disposition of a dead human body, to be furnished or delivered at a time determinable by the death of a person whose body is to be disposed of, but does not mean the furnishing of a cemetery lot, crypt, niche, mausoleum, grave marker, or monument."
Time effective
SECTION 7. This act takes effect November 1, 1995.
Approved the 12th day of June, 1995.