(A) A preneed funeral contract may be transferred to another provider only upon the prior written request of the purchaser or the beneficiary of a deceased purchaser or pursuant to Section 32-7-45. The selling provider must be paid a fee equal to ten percent of the contract face amount. The selling provider also must be paid ten percent of the earnings in that portion of the final year before transfer.
(B) A preneed funeral contract, whether revocable or irrevocable, funded by an insurance policy may be transferred to another provider only upon the prior written request of the purchaser or the beneficiary of a deceased purchaser 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 upon the prior written request of the purchaser or the beneficiary of a deceased purchaser or pursuant to Section 32-7-45.
(C)(1) At preneed, a preneed funeral contract may be transferred only to a funeral home that is licensed to sell preneed funeral contracts. The receiving funeral home is not required to pay an additional service charge unless there are changes to the contract.
(2) At need, a preneed funeral contract may be transferred to any funeral home that is licensed by the Board of Funeral Directors.
HISTORY: 1989 Act No. 89, Section 1; 1995 Act No. 67, Section 4; 2009 Act No. 70, Section 1, eff July 1, 2009; 2012 Act No. 261, Section 2, eff June 18, 2012.
Effect of Amendment
The 2009 amendment designated subsections (A) and (B), and substituted "upon" for "at" and "of a deceased purchaser" for "if the purchaser dies before the beneficiary" throughout.
The 2012 amendment added subsection (C).