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S.B. 10 Enrolled






Sponsor: Patrice M. Arent

                  This act modifies the Preneed Funeral Arrangement Act by requiring preneed contracts
                  to provide the buyer with the option to furnish a disclosure of the preneed contract to
                  another person.
                  This act affects sections of Utah Code Annotated 1953 as follows:
                      58-58-8, as enacted by Chapter 261, Laws of Utah 1991
                  Be it enacted by the Legislature of the state of Utah:
                      Section 1. Section 58-58-8 is amended to read:
                       58-58-8. Preneed contract requirements.
                      (1) Every preneed funeral arrangement sold in this state shall be evidenced by a written
                  contract. The provider shall file the form of the contract with the division. Approval of the
                  contract by the division is required before any representation may be made by a provider or
                  sales agent to a potential buyer or any sale.
                      (2) Each preneed contract form approved by the division shall:
                      (a) be written in clear and understandable language printed in an easy-to-read type size
                  and style;
                      (b) bear the pre-printed name, address, telephone and license number of the provider
                  obligated to provide the services under the contract terms;
                      (c) be sequentially numbered by contract form;
                      (d) clearly identify that the contract is a guaranteed product contract;
                      (e) provide that a trust is established in accordance with the provisions of Section
                  58-58-9 ;
                      (f) provide that the insurance policy or product is filed with the Insurance Department
                  and meets the requirements of Title 31A, Insurance Code if the contract is funded by an

                  insurance policy or product; and
                      (g) conform to other standards created by rule under Title 63, Chapter 46a, Utah
                  Administrative Rulemaking Act, for the purpose of protecting the interests of buyers and
                  potential buyers.
                      (3) No modification of the form, terms, or conditions of the preneed contract may be
                  made without the prior written approval of the division. The division's approval may not be
                  unreasonably withheld.
                      (4) A preneed contract shall provide for payment by the buyer in the form of money,
                  check, money order, credit card, or negotiable instrument which may be liquidated by the
                  provider within 30 days after receipt by the provider or the provider's sales agent.
                      (5) A preneed contract may not be revocable by the provider except in the event of
                  nonpayment under terms and conditions clearly set forth in the contract.
                      (6) A preneed contract may not be revocable by the purchaser or beneficiary except in the
                  event of a substantial contract breach by the provider or substantial evidence that the provider is
                  or will be unable to provide the personal property or services to the beneficiary as provided under
                  the contract. The contract shall contain a clear statement of the manner in which payments made
                  on the contract shall be refunded to the purchaser or beneficiary upon revocation by the
                      (7) A preneed contract shall provide the buyer the option to require the provider to
                  furnish a written disclosure to a person who does not live at the same residence as the buyer. The
                  buyer may choose:
                      (a) a full disclosure containing a copy of the entire preneed contract;
                      (b) a partial disclosure informing the recipient of:
                      (i) the existence of a preneed contract; and
                      (ii) the name, address, telephone number, and license number of the provider obligated to
                  provide the services under the preneed contract; or
                      (c) not to require the provider to furnish a written disclosure to another person.

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