MI
Michigan Senate Bill SB0268

Michigan 2023-2024 Regular Session

Michigan Senate Bill SB0268

Introduced
4/19/23  
Refer
4/19/23  
Report Pass
6/13/23  
Refer
6/13/23  
Report Pass
6/13/23  
Engrossed
6/14/23  
Refer
6/14/23  
Report Pass
9/12/23  
Enrolled
10/3/23  
Chaptered
10/24/23  

Caption

Insurance: life; adjustment of death benefit for cemetery or funeral goods and services; modify. Amends sec. 2080 of 1956 PA 218 (MCL 500.2080).

Impact

The impact of SB 268 is significant on Michigan's insurance landscape by clarifying and regulating the relationship between life insurance providers and funeral service providers. The bill aims to prevent potential conflicts of interest while ensuring that consumers have transparent options when planning for funeral expenses. This legislative change is designed to increase consumer protection and ensure that families are well informed about their rights when using life insurance policies for funeral funding.

Summary

Senate Bill 268 amends the existing 1956 Public Act 218 regarding insurance practices, particularly focusing on life insurance policies and their use in funeral arrangements. The bill stipulates that life or accident insurers are prohibited from owning or managing funeral establishments. Additionally, it introduces provisions for assigning life insurance proceeds specifically for funeral expenses, allowing these proceeds to cover the costs of cemetery and funeral goods and services. It regulates how such assignments are to be structured, ensuring that they comply with specific requirements set forth within the legislation.

Sentiment

The overall sentiment surrounding SB 268 appears to be cautious but supportive among legislators, with a recognition of the need for clearer guidelines and consumer protections in an area often fraught with emotional and financial concerns. Advocates argue that the bill will enhance consumer trust in life insurance products by providing necessary safeguards. However, some concerns were raised about whether the regulatory measures might limit options for consumers in arranging pre-paid funeral services.

Contention

Notable points of contention include the strict prohibitions placed on life insurers regarding their involvement with funeral services, which some stakeholders believe could hinder innovative service offerings that might serve consumers better. Additionally, there is concern about ensuring that the parameters for assigning insurance proceeds are not overly restrictive to the detriment of consumers who wish to pre-arrange their services effectively.

Latest SB0268 Activity

Companion Bills

No companion bills found.

Similar Bills

AL HB47

Funeral Service Board, licensing and regulation of cemetery authorities and cemeteries, Alabama Preneed Funeral and Cemetery Act, established, adding, amending and renumbering numerous sections, Secs. 27-17A-2, 27-17A-17, 27-17A-45, 27-17A-57 repealed; Secs. 34-13-1, 34-13-2, 34-13-4, 34-13-7, 34-13-9, 34-13-11, 34-13-12, 34-13-20, 34-13-22, 34-13-23, 34-13-26, 34-13-27, 34-13-52, 34-13-53, 34-13-54, 34-13-55, 34-13-56, 34-13-56.1, 34-13-111, 34-13-113 am'd.

AL HB212

Relating to the Alabama Board of Funeral Service; to amend Section 34-13-1, as amended by Act 2022-339, 2022 Regular Session, Sections 34-13-20, 34-13-21, and 34-13-22, Sections 34-13-23 and 34-13-27, as amended by Act 2022-339, 2022 Regular Session, Code of Alabama 1975, to rename the Alabama Board of Funeral Service as the Alabama Board of Funeral Services and to provide further for definitions and the membership of the board; to add Article 5 to Chapter 13, Title 34, Code of Alabama 1975, by amending and renumbering Sections 27-17A-1, 27-17A-3, 27-17A-4, 27-17A-10 to 27-17A-25, inclusive, 27-17A-30 to 27-17A-34, inclusive, and 27-17A-40 to 27-17A-57, inclusive, as Sections 34-13-170 to 34-13-172, inclusive, 34-13-190 to 34-13-206, inclusive, 34-13-230 to 34-13-234, inclusive, and 34-13-260 to 34-13-277, inclusive, Code of Alabama 1975; to establish the Alabama Preneed Funeral and Cemetery Act of 2023; to transfer the existing Preneed Funeral and Cemetery Act, and the regulation of preneed contracts, from the Commissioner and Department of Insurance to the Alabama Board of Funeral Service; to authorize the Department of Insurance to temporarily transfer certain funds to the board to defray costs associated with the administration and operation of the Alabama Preneed Funeral and Cemetery Act of 2023; and in connection therewith would have as its purpose or effect the requirement of a new or increased expenditure of local funds within the meaning of Section 111.05 of the Constitution of Alabama of 2022.

AL HB81

Relating to the Alabama Board of Funeral Service; to amend Section 34-13-1, as amended by Act 2022-339, 2022 Regular Session, Sections 34-13-20, 34-13-21, and 34-13-22, Sections 34-13-23 and 34-13-27, as amended by Act 2022-339, 2022 Regular Session, Code of Alabama 1975, to rename the Alabama Board of Funeral Service as the Alabama Board of Funeral Services and to provide further for definitions and the membership of the board; to add Article 5 to Chapter 13, Title 34, Code of Alabama 1975, by amending and renumbering Sections 27-17A-1, 27-17A-3, 27-17A-4, 27-17A-10 to 27-17A-25, inclusive, 27-17A-30 to 27-17A-34, inclusive, and 27-17A-40 to 27-17A-57, inclusive, as Sections 34-13-170 to 34-13-172, inclusive, 34-13-190 to 34-13-206, inclusive, 34-13-230 to 34-13-234, inclusive, and 34-13-260 to 34-13-277, inclusive, Code of Alabama 1975; to establish the Alabama Preneed Funeral and Cemetery Act of 2023; to transfer the existing Preneed Funeral and Cemetery Act, and the regulation of preneed contracts, from the Commissioner and Department of Insurance to the Alabama Board of Funeral Service; to authorize the Department of Insurance to temporarily transfer certain funds to the board to defray costs associated with the administration and operation of the Alabama Preneed Funeral and Cemetery Act of 2023; and in connection therewith would have as its purpose or effect the requirement of a new or increased expenditure of local funds within the meaning of Section 111.05 of the Constitution of Alabama of 2022.

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Relating to the Alabama Board of Funeral Service; to amend Section 34-13-1, as amended by Act 2022-339, 2022 Regular Session, Sections 34-13-20, 34-13-21, and 34-13-22, Sections 34-13-23 and 34-13-27, as amended by Act 2022-339, 2022 Regular Session, Code of Alabama 1975, to rename the Alabama Board of Funeral Service as the Alabama Board of Funeral Services and to provide further for definitions and the membership of the board; to add Article 5 to Chapter 13, Title 34, Code of Alabama 1975, by amending and renumbering Sections 27-17A-1, 27-17A-3, 27-17A-4, 27-17A-10 to 27-17A-25, inclusive, 27-17A-30 to 27-17A-34, inclusive, and 27-17A-40 to 27-17A-57, inclusive, as Sections 34-13-170 to 34-13-172, inclusive, 34-13-190 to 34-13-206, inclusive, 34-13-230 to 34-13-234, inclusive, and 34-13-260 to 34-13-277, inclusive, Code of Alabama 1975; to establish the Alabama Preneed Funeral and Cemetery Act of 2023; to transfer the existing Preneed Funeral and Cemetery Act, and the regulation of preneed contracts, from the Commissioner and Department of Insurance to the Alabama Board of Funeral Service; to authorize the Department of Insurance to temporarily transfer certain funds to the board to defray costs associated with the administration and operation of the Alabama Preneed Funeral and Cemetery Act of 2023; and in connection therewith would have as its purpose or effect the requirement of a new or increased expenditure of local funds within the meaning of Section 111.05 of the Constitution of Alabama of 2022.

AL HB338

Funeral Service Board, licensing and regulation of cemetery authorities and cemeteries, Secs. 34-13-300 to 34-13-317, inclusive, added; Secs. 27-17A-46, 27-17A-47, 27-17A-48 repealed; Secs. 34-13-20, 34-13-111 am'd.

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