The bill modifies the definition and scope of a preneed contract and addresses related practices in the funeral services industry.
Key Provisions:
Exclusion of Transportation Protection Agreements:
The bill clarifies that a preneed contract does not include a transportation protection agreement. This type of agreement primarily covers:
Coordination or arrangement of services for the preparation of human remains for transportation.
The actual transportation of human remains by a third party that is not a general funeral service provider.
Deceptive Trade Practice and Unlawful Act:
The bill makes it a deceptive trade practice under the Colorado Consumer Protection Act and an unlawful act under the Mortuary Science Code for a funeral director to commit theft of money paid by a client for funeral services. This provision aims to protect consumers from unethical or illegal conduct by funeral service providers.
The bill aims to provide greater clarity regarding preneed contracts and prevent fraudulent or unethical behavior within the funeral industry.
To protect consumers and ensure that the funds they pay in advance for funeral services are properly handled and used for their intended purposes.
Summary
Under current law, a preneed contract is a contract, agreement,
or mutual understanding, or any security or other instrument that is convertible into a contract, agreement, or mutual understanding, whereby, upon the death of the preneed contract beneficiary, a final resting place, merchandise, or services are provided or performed in connection with the final disposition of the beneficiary's body. The bill states that a preneed contract does not include a transportation protection agreement, which is an agreement that primarily provides for the coordination or arrangement, by a third party that is not a general provider, of services related to:
•
The preparation of human remains for the purpose of transportation; or
•
The transportation of human remains.
The bill also makes it a deceptive trade practice under the
Colorado Consumer Protection Act as well as an unlawful act under the Mortuary Science Code for a funeral director to commit theft of money that a client paid for funeral services.
