Report Title:
Prepaid Funeral Plan; Cancellation and Refund
Description:
Requires, upon cancellation of prepaid funeral plan contract, return of properties transferred and moneys paid, less moneys expended for merchandise delivered to purchaser.
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THE SENATE |
S.B. NO. |
60 |
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TWENTY-THIRD LEGISLATURE, 2005 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to cemetery and funeral trusts.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Chapter 441, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§441- Cancellation and refund. At any time prior to the death of the beneficiary of a perpetual care fund or pre-need trust, the purchaser of a contract therefor may cancel the contract in writing and, within days thereafter, shall be entitled to:
(1) The return of one hundred per cent of all properties transferred as a part of or incident to the perpetual care fund; and
(2) A one hundred per cent refund of the entire amount paid on the contract, including undistributed earnings attributable to such amount, but excluding any amount paid for merchandise already delivered, which amount shall be retained by the pre-need funeral authority that sold the contract as liquidated damages."
SECTION 2. Section 441-38, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:
"(b) A cemetery or pre-need funeral authority may take and receive, but shall transfer to the trustee as part of or incident to the pre-need trust, all payments received [after the recovery of acquisition costs, which shall be the lesser of thirty per cent of the contract price or the difference between the contract price and the cost of the pre-need interment or pre-need funeral services contracted to be provided. The transfer shall be made], not later than thirty days after receipt of payment from the purchaser [and shall be immediately deposited in] for immediate deposit into the trust."
SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 4. This Act shall take effect upon its approval.
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INTRODUCED BY: |
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