Tennessee House Bill HB1811

Tennessee 2023-2024 Regular Session

• Introduced: 1/10/24
• Refer: 1/22/24
• Refer: 3/19/24
• Refer: 3/26/24
• Chaptered: 4/17/24
• Passed: 4/17/24

Caption

AN ACT to amend Tennessee Code Annotated, Title 62, Chapter 5, relative to pre-need funeral contracts.

Impact

The amendment brought by HB 1811 is likely to enhance consumer protection for individuals considering pre-need funeral services. By ensuring that customers are informed about the handling of interest on these contracts, the bill aims to prevent potential issues related to financial management and trust. This transparency is expected to foster consumer confidence and improve the overall integrity of the pre-need funeral services market in Tennessee. Additionally, it delineates responsibilities for sellers, thereby reinforcing ethical practices within the industry.

Summary

House Bill 1811 seeks to amend Tennessee Code Annotated, specifically in Title 62, Chapter 5, concerning pre-need funeral contracts. The primary aim of the bill is to clarify the treatment of interest earned on guaranteed pre-need funeral contracts funded by insurance or irrevocable trusts. It proposes that sellers of such contracts must explicitly disclose how this interest will be managed, promoting transparency for consumers entering into these contracts. The bill's effective date is set for July 1, 2024, and it will apply to contracts made or modified after this date.

Sentiment

The sentiment around HB 1811 appears to be predominantly positive, with many stakeholders, particularly consumer advocacy groups, in favor of its provisions that advocate for transparency. The proposal is seen as a proactive step in safeguarding consumers, ensuring that they are better informed about their financial commitments related to funeral services. While general commentary leans towards enthusiasm for increased consumer protection, there may be some pushback from industry professionals concerned about additional regulatory burdens.

Contention

While HB 1811 is primarily seen as beneficial, it could stimulate discussions regarding the implications for industry providers. Questions may arise about the feasibility of additional disclosure requirements and whether this might complicate the issuance of pre-need contracts or increase operational costs for sellers. There could also be concerns from the funeral home industry about how these provisions may impact pricing and services offered to consumers.