HOUSE BILL No. 5472 February 29, 2000, Introduced by Rep. Tabor and referred to the Committee on Senior Health, Security and Retirement. A bill to amend 1956 PA 218, entitled "The insurance code of 1956," by amending section 2080 (MCL 500.2080), as amended by 1986 PA 318. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 Sec. 2080. (1) Itshall beIS unlawful for any life or 2 accident insurer authorized to do business in this state to own, 3 manage, supervise, operate, or maintain a mortuary or undertaking 4 establishment, or to permit its officers, agents, or employees to 5 own or maintainany such funeralA MORTUARY or undertaking 6 establishment. 7 (2) Except as otherwise provided in subsection (6), it 8shall beIS unlawful for any life insurance, sick or funeral 9 benefit company, or any company, corporation, or association 10 engaged in a similar business to contract or agree with any 02673'99 DKH 2 1 funeral director, undertaker, or mortuary to the effect that 2suchTHE funeral director, undertaker, or mortuary shall con- 3 duct the funeral of any person insured bysuchTHAT company, 4 corporation, or association. 5 (3) A funeral establishment, cemetery, or seller shall not 6 be licensed as an insurance agent under chapter 12 other than as 7 a limited licensee pursuant to this subsection and chapter 12. A 8 funeral establishment, cemetery, or seller shall not be a limited 9 life insurance agent unless that funeral establishment, cemetery, 10 or seller provides a written assurance to the commissioner at the 11 time of application for the limited licensure and with each 12 LICENSE renewalthereofthat he or she has read and understands 13 the conditions contained in subsection (9) and agrees to comply 14 with those conditions. A person licensed as a limited life 15 insurance agent under this subsection and chapter 12shall be16 IS authorized and licensed to sell only associated life insurance 17 policies or annuity contracts andshallIS notbeauthorized 18 or licensed to sell any other type of insurance policy or annuity 19 contract. A person licensed as a limited life insurance agent 20 under this subsection and chapter 12 to sell associated life 21 insurance policies or annuity contracts shall not sell cemetery 22 goods or services or funeral goods or services unless all of the 23 conditions provided in subsection (9) are met. A person licensed 24 as a life insurance agent, other than a limited life insurance 25 agent, shall not sell cemetery goods or services or funeral goods 26 or services or be associated with a funeral establishment, 27 cemetery, or seller. Notwithstanding any other provision in this 02673'99 3 1 act, a funeral establishment, cemetery, or seller may advise 2 customers or potential customers of the availability of life 3 insurance, the proceeds of which may be assigned pursuant to 4 subsection (6), and may provide application forms and other 5 information in regard tosuchTHAT life insurance. If an 6 application form is provided, the funeral establishment, ceme- 7 tery, or seller shall also provide to the person a list annually 8 prepared by the commissioner setting forth the life insurance 9 companies offering in Michigan associated life insurance policies 10 or annuity contracts. The list shall include the name, address, 11 and telephone number of an agent for each of the life insurance 12 companies listed. The list also shall include a statement that a 13 person who is insured under any life insurance policy or annuity 14 contract may assign all or a portion of the proceeds, not to 15 exceed the amount provided in subsection (6)(g), of the existing 16 life insurance policy or annuity contract for the payment of 17 funeral services and goods or cemetery services or goods to any 18 funeral establishment, cemetery, or sellerwhichTHAT has 19 accepted any other assignment of an associated life insurance 20 policy or annuity contract during that calendar year. The 21 funeral establishment, cemetery, or seller shall accept an 22 assignment on the proceeds from any associated or nonassociated 23 life insurance policy or annuity contract pursuant to 24 subsection (6), and this requirement on the funeral establish- 25 ment, cemetery, or seller shall be set forth in the statement 26 prepared by theinsurancecommissioner. The assignor or the 27 person or persons legally entitled to make funeral arrangements 02673'99 4 1 for the person whose life was insured may contract with the 2 funeral establishment, cemetery, or seller of his or her choice 3 for the rendering of the funeral goods or services or cemetery 4 goods or services.EachEXCEPT AS PROVIDED IN THIS SECTION, 5 EACH associated life insurance policy or annuity contract deliv- 6 ered or issued for delivery in this state shallhave a death7benefit that is sufficient to cover the initial contract price of8the cemetery goods or services or funeral goods or services and9that increasesINCREASE at an annual rate of not less than the 10 consumer price index. A LIFE INSURANCE COMPANY OFFERING ASSOCI- 11 ATED LIFE INSURANCE OR ANNUITY CONTRACTS IN THIS STATE MAY OFFER 12 LIFE INSURANCE OR ANNUITY CONTRACTS THAT DO NOT GUARANTEE AN 13 INCREASE AT AN ANNUAL RATE OF NOT LESS THAN THE CONSUMER PRICE 14 INDEX, BUT ONLY IF THE SELLER IS PROVIDED WITH THE OPTION OF 15 OFFERING BOTH INDEXED AND NON-INDEXED LIFE INSURANCE OR ANNUITY 16 CONTRACTS TO FUND CEMETERY GOODS AND SERVICES OR FUNERAL GOODS OR 17 SERVICES. IN ADDITION, EACH ASSOCIATED LIFE INSURANCE POLICY OR 18 ANNUITY CONTRACT SHALL DISCLOSE THE DEATH BENEFIT AND ANY REDUC- 19 TION IN THE DEATH BENEFIT IF IT IS A LIMITED DEATH BENEFIT 20 POLICY. EACH APPLICATION FOR AN ASSOCIATED LIFE INSURANCE POLICY 21 THAT PROVIDES FOR A LIMITED DEATH BENEFIT SHALL CONTAIN AN 22 ACKNOWLEDGMENT FROM THE APPLICANT THAT THE APPLICANT HAS BEEN 23 NOTIFIED OF THE LIMITED DEATH BENEFIT AND THE PERIOD OF THE 24 LIMITATION. ANY LIMITED DEATH BENEFIT PERIOD SHALL NOT EXCEED 2 25 YEARS. 26 (4) A person shall not be designated as the beneficiary in 27 any policy of life or accident insurance whereby the beneficiary, 02673'99 5 1 directly or indirectly, shall, in return for all or a part of the 2 proceeds ofsuchTHE policy of insurance, furnish cemetery 3 services or goods or funeral services or goods in connection 4therewithWITH THE POLICY. 5 (5) Except as otherwise provided in subsection (6), it 6shall beIS unlawful for any life or accident, or sick or 7 funeral benefit company, or any person, company, corporation, or 8 association, to offer or furnish goods or services or anything 9 but money to its insureds or tohis or herTHEIR heirs, repre- 10 sentatives, attorneys, relatives, associates, or assigns in any 11 connection with, or by way of encumbrance, assignment, payment, 12 settlement, satisfaction, discharge, or release of any insurance 13 policy. However, this subsectionshallDOES not prohibit any 14 company, corporation, or association from furnishing medical, 15 surgical, or hospital service. 16 (6) Notwithstanding any other provision in this act, a life 17 insurer may write a life insurance policy or annuity contract 18which issubject to an assignment of the proceeds of the insur- 19 ance policy or annuity contract as payment for cemetery services 20 or goods or funeral services or goods as provided in this subsec- 21 tion regardless of the relationship between the life insurer and 22 the assignee. An assignment of the proceeds of the insurance 23 policy or annuity contract pursuant to this subsection shall be 24 in writing on a form approved by the commissioner. A predeath 25 assignment of the proceeds of a life insurance policy or annuity 26 contract as payment for cemetery or funeral services or goods is 02673'99 6 1 void unless all of the following conditions and criteria are 2 met: 3 (a) The assignment is an inseparable part of the contract 4 for the cemetery services or goods or funeral services or goods 5 for which the assigned proceeds serve as payment. 6 (b) The assignment is revocable by the assignor, assignor's 7 successor, or if the assignor is the insured by the representa- 8 tive of the insured's estate prior to the provision of the ceme- 9 tery services or goods or funeral services or goods. 10 (c) The contract for funeral services or goods or cemetery 11 services or goods and the assignment provide that upon revocation 12 of the assignment, the contract for the cemetery services or 13 goods or funeral services or goods is revoked and cemetery serv- 14 ices or goods or funeral services or goods may be obtained from 15 any cemetery, funeral establishment, or seller. 16 (d) The assignment contains the following disclosure in 17 boldfaced type: 18 "This assignment may be revoked by the assignor or 19 assignor's successor or, if the assignor is also the insured and 20 deceased, by the representative of the insured's estate before 21 the rendering of the cemetery services or goods or funeral serv- 22 ices or goods. If the assignment is revoked, the death benefit 23 under the life insurance policy or annuity contract shall be paid 24 in accordance with the beneficiary designation under the insur- 25 ance policy or annuity contract.". 26 (e) The assignment provides for all of the following: 02673'99 7 1 (i) That the actual price of the cemetery services or goods 2 or funeral services or goods delivered at the time of death may 3 be more than or less than the price set forth in the assignment. 4 (ii) For the assignment of an associated life insurance 5 policy or annuity contract, that any increase in the price of the 6 cemetery services or goods or funeral services or goods shall not 7 exceed the ultimate death benefit under the life insurance policy 8 or annuity contract. 9 (iii) For the assignment of a nonassociated life insurance 10 policy or annuity contract, that any increase in the price of the 11 cemetery services or goods or the funeral services or goods shall 12 not exceed the consumer price index or the retail price list in 13 effect when the death occurs, whichever is less. 14 (iv) That if the ultimate death benefit under a life insur- 15 ance policy or annuity contract exceeds the price of the cemetery 16 services or goods or funeral services or goods at the time of 17 performance, the excess amount shall be distributed to the bene- 18 ficiary designated under the life insurance policy or annuity 19 contract or the insured's estate. 20 (v) That any addition to or modification of the contract for 21 cemetery services or goods or funeral services or goods does not 22 revoke the assignment or the contract for the cemetery services 23 or goods or funeral services or goodswhichTHAT are not 24 affected by the addition or modification for which the assigned 25 proceeds are payment unless the assignment is revoked. 26 (f) The assignment is limited to that portion of the 27 proceeds of the life insurance policy or annuity contractwhich02673'99 8 1 THAT is needed to pay for the cemetery services or goods or 2 funeral services or goods for which the assignor has contracted. 3 (g) In the case of an associated life insurance policy or 4 annuity contract, the death benefit of the life insurance policy 5 or annuity contractwhichTHAT is subject to the assignment 6 does not exceed$5,000.00$15,000.00 when the first premium 7 payment is made on the life insurance policy or annuity 8 contract. In the case of a nonassociated life insurance policy 9 or annuity contract, the initial amount of proceeds assigned does 10 not exceed$5,000.00$15,000.00. The maximum amounts in this 11 subdivision shall be adjusted annually in accordance with the 12 consumer price index. 13 (h) The assignment shall contain the dispute resolution 14 rightsset forthin subsection (8). After the death of the 15 insured but before the cemetery services or goods or funeral 16 services or goods are provided, the funeral establishment, ceme- 17 tery, or seller shall provide to a representative of the 18 insured's estate a separate document entitled, "dispute resolu- 19 tion disclosure statement," which shall clearly set forth the 20 dispute resolution rightsset forthin subsection (8). The 21 dispute resolution disclosure statement shall be filed with the 22 commissioner and shall be considered approved unless disapproved 23 within 30 days after the submission. The language used toset24forthDESCRIBE the dispute resolution rights in subsection (8) 25 shall be written in a manner calculated to be understood by a 26 person of ordinary intelligence. 02673'99 9 1 (i) The assignor and not the assignee is responsible for 2 making the premium payments due on the life insurance policy or 3 annuity contract. This subdivision does not apply to an insur- 4 ance agent when acting as a fiduciary pursuant to section 1207. 5 (j) After the death of the insured but before the cemetery 6 services or goods or funeral services or goods are provided, the 7 representative of the insured's estate is provided with a current 8 price list for the cemetery services or goods or funeral services 9 or goods provided pursuant to the assignment. 10 (k) At the time the assignment is made, the assignee com- 11 plies with the price disclosure rules of the federal trade com- 12 mission prescribed in 16 C.F.R.,part 453, whether or not the 13 rules by their own terms apply to the offering. 14 (l) At the time the assignment is made, the assignor certi- 15 fies that the insured does not have in effect other life insur- 16 ance policies or annuity contracts that have been assigned as 17 payment for cemetery goods or services or funeral goods or serv- 18 iceswhichTHAT together with the additional assignment would 19 have an aggregate face value in excess of the limitation provided 20 in subdivision(h)(G). 21 (m) For the assignment of a nonassociated life insurance 22 policy or annuity contract, the assignment complies with both of 23 the following: 24 (i) The assignmentis sufficient to cover the initial con-25tract price of the cemetery goods or services or funeral goods or26servicesCLEARLY DISCLOSES WHETHER THE AMOUNT ASSIGNED IS 27 SUFFICIENT TO COVER THE INITIAL CONTRACT PRICE OF THE CEMETERY 02673'99 10 1 GOODS OR SERVICES OR FUNERAL GOODS OR SERVICES, AND IF NOT, ANY 2 OBLIGATION THAT EXISTS TO PAY FOR THE DIFFERENCE BETWEEN THE CON- 3 TRACT PRICE OF THE CEMETERY GOODS OR SERVICES OR FUNERAL GOODS OR 4 SERVICES AND THE AMOUNT ASSIGNED. 5 (ii) The assignment provides that any increase in the price 6 of the cemetery services or goods or the funeral services or 7 goods shall not exceed the consumer price index or the retail 8 price list in effect when the death occurs, whichever is less. 9 (7) An insurer or an insurance agent shall not make a false 10 or misleading statement, oral or written, regarding an assignment 11 subject to subsection (6) or regarding the rights or obligations 12 of any party or prospective party tosuch anTHAT assignment. 13 An insurer or an insurance agent shall not advertise or promote 14 an assignment subject to subsection (6) in a mannerwhichTHAT 15 is false, misleading, deceptive, or unfair. The commissioner 16 shall promulgate rules regulating the solicitation of plans pro- 17 moting assignments subject to subsection (6) to protect against 18 solicitationswhichTHAT are intimidating, vexatious, fraudu- 19 lent, or misleading, or which take unfair advantage of a person's 20 ignorance or emotional vulnerability. 21 (8) After the cemetery services or goods or funeral services 22 or goods are provided, the funeral establishment, cemetery, or 23 seller shall provide to a representative of the insured's estate 24 a statement to be signed by the representative of the insured's 25 estate authorizing the release of the assignment proceeds for the 26 payment of the cemetery services or goods or funeral services or 27 goods. The insurer shall release to the funeral establishment, 02673'99 11 1 cemetery, or seller the assignment proceeds upon receipt of the 2 authorization statement signed by a representative of the 3 insured's estate. If a representative of the insured's estate 4 fails to sign the authorization statement, the following shall 5 take place: 6 (a) The funeral establishment, cemetery, or seller shall 7 provide the representative of the insured's estate with a dispute 8 resolution notice, a copy of which is to be sent to the insurer 9 and theinsurancecommissioner that states all of the 10 following: 11 (i) That the funeral establishment, cemetery, or seller has 12 provided the cemetery services or goods or funeral services or 13 goods. 14 (ii) That a representative of the insured's estate has 15 refused to authorize the insurer to release the assignment pro- 16 ceeds for the payment of the cemetery services or goods or 17 funeral services or goods. 18 (iii) That a representative of the insured's estate may seek 19 arbitration to resolve the payment dispute. 20 (b) Upon the receipt of the dispute resolution notice 21 described in subdivision (a), the insurer shall retain the 22 assignment proceeds for 30 days. The insurer shall release the 23 assignment proceeds to the funeral establishment, cemetery, or 24 seller if after the expiration of the 30 days the insurer is not 25 informed that arbitration proceedings have been commenced, or 26 pursuant to the award of the arbitrator. 02673'99 12 1 (c) The funeral establishment, cemetery, seller, or a 2 representative of the insured's estate may commence arbitration 3 proceedings to determine the disposition of the assignment 4 proceeds. Arbitration shall be conducted pursuant to the rules 5 and procedures of the American arbitration association. Expenses 6 of the arbitration shall be shared equally by the insured's 7 estate and the assignee unless otherwise ordered by the 8 arbitrator. 9 (d) Nothing in this subsectionshall limitLIMITS the 10 right of any party involved in the payment dispute to seek other 11 recourse permitted by law. 12 (9) A life insurance agent shall not sell or solicit the 13 sale of a life insurance policy or annuity contract with the 14 intention of having the purchaser assign the proceeds of the 15 policy or contract to a funeral establishment, cemetery, or 16 seller with which the agent is associated unless all of the fol- 17 lowing conditions are met: 18 (a) The agentshall discloseDISCLOSES in writing to the 19 purchaser the nature of his or her association with the funeral 20 establishment, cemetery, or seller and that both the funeral 21 establishment, cemetery, or seller and the agent will or may 22 profit from the transaction, if that is the case. 23 (b)AIF THE funeral establishment, cemetery, or seller 24whichaccepts assignments pursuant to subsection (6),shall25also offerIT ALSO OFFERS to sell or provide cemetery goods or 26 services or funeral goods or funeral services pursuant to prepaid 27 funeral contracts as provided in the prepaid funeral contract 02673'99 13 1 funding act, 1986 PA 255, MCL 328.211 TO 328.235, pursuant to the 2 trust provisions of the cemetery regulation act,Act No. 251 of3the Public Acts of 1968, being sections 456.521 to 456.543 of the4Michigan Compiled Laws1968 PA 251, MCL 456.521 TO 456.543. 5 (c) If the contemplated assignment is to be made to pay the 6 cost of cemetery goods or services or funeral goods or funeral 7 services, the agentshall discloseDISCLOSES in writing to the 8 purchaser that the cemetery goods or services or funeral goods or 9 services may also be purchased prior to death by making payment 10 directly to a funeral establishment, cemetery, or seller who will 11 hold funds in escrow for the benefit of the purchaser pursuant to 12 the prepaid funeral contract funding act, 1986 PA 255, MCL 13 328.211 TO 328.235, or in trust pursuant to the provisions of the 14 cemetery regulation act,Act No. 251 of the Public Acts of 196815 1968 PA 251, MCL 456.521 TO 456.543. The written disclosure 16 shall also state that upon cancellation of the prepaid funeral 17 contract, the purchaser is entitled to a refund of at least 90% 18 of the principal and income earned. 19 (d) The sale of cemetery goods or services or funeral goods 20 or servicesshallIS notbeconditioned on the purchaser 21 buying or agreeing to buy a life insurance policy or annuity con- 22 tract or on the assignment of the proceeds of the policy or con- 23 tract to that funeral establishment, cemetery, or seller. 24 (e) The sale of a life insurance policy or annuity contract 25shallIS notbeconditioned on the purchaser buying or agree- 26 ing to buy cemetery goods or services or funeral goods or 27 services from the funeral establishment, cemetery, or seller with 02673'99 14 1 which the agent is associated or on the assignment of the 2 proceeds of the policy or contract to that funeral establishment, 3 cemetery, or seller. 4 (f) A discount from the current price of cemetery goods or 5 services or funeral goods or servicesshallIS notbeoffered 6 as an inducement to purchase or assign a life insurance policy or 7 annuity contract. 8 (g) The life insurance policy or annuity contract sold by 9 the agent may be canceled by the purchaser within 10 days after 10 the receipt of the policy or annuity contract, in which event a 11 full refund of all premiums shall be paid to the purchaser. 12 (h) The agentshall discloseDISCLOSES in writing to the 13 purchaser that the funeral establishment, cemetery, or seller 14 with which the agent is associated will accept assignments of 15 life insurance policies or annuity contracts sold by any other 16 licensed agent. 17 (10) The commissioner or any other person, in order to force 18 compliance with subsection (6) or (7), may bring an action in a 19 circuit court in any county in which the assignee or insurance 20 agent or any other person has solicited or sold a life insurance 21 policy or annuity contract that is assigned pursuant to 22 subsection (6), whether or not that person has purchased the life 23 insurance policy or annuity contract or is personally aggrieved 24 by a violation of this section. The court may award damages and 25 issue equitable orders in accordance with the Michigan court 26 rules to restrain conduct in violation of this section. 02673'99 15 1 (11) Any person violating any of the provisions of this 2 sectionshall be deemedIS guilty of a misdemeanor, and each 3 violationthereof shall beIS a separate offenseand upon con-4viction shall be punishedPUNISHABLE by a fine not exceeding 5 $1,000.00 or by imprisonment for not more than 6 months, or both. 6such fine and imprisonment within the discretion of the courts.7 (12) In addition to the penalty provided in subsection (11), 8 if, after a hearing conducted pursuant to the administrative pro- 9 cedures act of 1969,Act No. 306 of the Public Acts of 1969,10being sections 24.201 to 24.328 of the Michigan Compiled Laws11 1969 PA 306, MCL 24.201 TO 24.328, the commissioner determines a 12 person has violated this section, the commissioner may order the 13 person to pay a civil fine of not more than $10,000.00 for each 14 violation and may also impose other sanctions provided pursuant 15 to chapter 12. The money collected under this subsection shall 16 be deposited in the funeral consumers education and advocacy 17 fund. The funeral consumers education and advocacy fund is cre- 18 ated within the insurance bureau. The fund shall be administered 19 by the commissioner. The money in the fund shall be used to do 20 both of the following: 21 (a) To promote the education of consumers with regard to the 22 prearrangement and purchase of cemetery or funeral services or 23 goods through the purchase and assignment of life insurance or 24 annuity contracts. 25 (b) To provide legal assistance to persons who were injured 26 as a result of a violation of this section. 02673'99 16 1 (13) For purposes of this section, a life insurance agent is 2 associated with a funeral establishment, cemetery, or seller if 3 any of the following apply: 4 (a) The agent is a funeral establishment, cemetery, or 5 seller. 6 (b) The agent owns an interest, directly or indirectly, in a 7 corporation or other entitywhichTHAT holds an interest in a 8 funeral establishment, cemetery, or seller. 9 (c) The agent is an officer, employee, or agent of a funeral 10 establishment, cemetery, or seller. 11 (d) The agent is an officer, employee, or agent of a corpo- 12 ration or other entitywhichTHAT holds an interest, either 13 directly or indirectly, in a funeral establishment, cemetery, or 14 seller, or in a corporation or other entitywhichTHAT holds an 15 interest, directly or indirectly, in a corporation or other 16 entitywhichTHAT holds an interest in a funeral establishment, 17 cemetery, or seller. 18 (14) As used in this section: 19 (a) "Associated life insurance policy or annuity contract" 20 is a life insurance policy or annuity contract that is marketed, 21 designed, and intended to be assigned as payment for cemetery 22 goods or services or funeral goods or services. 23 (b) "Casket" means any box or container consisting of 1 or 24 more parts in which a dead human body is placed prior to inter- 25 ment, entombment, or cremation which may or may not be per- 26 manently interred, entombed, or cremated with the dead human 27 body. A permanent interment or entombment receptaclewhich02673'99 17 1 THAT is designed or intended for use without a cemetery burial 2 vault or other outside containershallIS alsobeconsidered 3 a casket. 4 (c) "Catafalque" means an ornamental or decorative object or 5 structurewhichTHAT is placed beneath, over, or around a 6 casket, vault, or a dead human body prior to final disposition of 7 the dead human body. 8 (d) "Cemetery" means that term as defined in but not neces- 9 sarily regulated under section 2 of the cemetery regulation act, 10Act No. 251 of the Public Acts of 1968, being section 456.522 of11the Michigan Compiled Laws1968 PA 251, MCL 456.522, or an offi- 12 cer, agent, or employeethereofOF A CEMETERY. 13 (e) "Cemetery burial vault or other outside container" means 14 a box or containerwhichTHAT is used solely at the place of 15 interment to permanently surround or enclose a casket and to sup- 16 port the earth above the casket after burial. 17 (f) "Cemetery goods" means land or interests in land, 18 crypts, lawn crypts, mausoleum crypts, or niches that are sold by 19 a cemetery. In addition, cemetery goods shall include cemetery 20 burial vaults or other outside containers, markers, monuments, 21 urns, and merchandise items used for the purpose of memorializing 22 a decedent and placed on or in proximity to a place of interment 23 or entombment of a casket, catafalque, or vault or to a place of 24 inurnmentwhich aresold by a cemetery. 25 (g) "Cemetery services" means those services customarily 26 performed by a cemetery. 02673'99 18 1 (h) "Combination unit" means any product consisting of a 2 unit or a series of unitswhichTHAT are designed or intended 3 to be used together as both a casket and as a permanent burial 4 receptacle. 5 (i) "Consumer price index" means the annual average percen- 6 tage increase in the Detroit consumer price index for all items 7 for the prior 12-month period as reported by the United States 8 department of labor and as certified by the commissioner. 9 (j) "Funeral establishment" means a funeral establishment or 10 a person who is engaged in the practice of mortuary science as 11 those terms are defined in section 1801 of the occupational code, 12Act No. 299 of the Public Acts of 1980, being section 339.180113of the Michigan Compiled Laws1980 PA 299, MCL 339.1801, or an 14 officer, agent, or employeethereofOF THAT ESTABLISHMENT OR 15 PERSON. 16 (k) "Funeral goods" means items of merchandisewhichTHAT 17 will be used in connection with a funeral or an alternative to a 18 funeral or final disposition of human remains including, but not 19 limited to, caskets, other burial containers, combination units, 20 and catafalques. Funeral goods does not include cemetery goods. 21 (l) "Funeral services" means services customarily performed 22 by a person who is licensed pursuant to sections 1801 to 1812 of 23 the occupational code,Act No. 299 of the Public Acts of 1980,24being sections 339.1801 to 339.1812 of the Michigan Compiled25Laws1980 PA 299, MCL 339.1801 TO 339.1812. Funeral services 26includesINCLUDE, butisARE not limited to, care of human 27 remains, embalming, preparation of human remains for final 02673'99 19 1 disposition, professional services relating to a funeral or an 2 alternative to a funeral or final disposition of human remains, 3 transportation of human remains, limousine services, use of 4 facilities or equipment for viewing human remains, visitation, 5 memorial services, or serviceswhichTHAT are used in connec- 6 tion with a funeral or alternative to a funeral, coordinating or 7 conducting funeral rites or ceremonies, and other services pro- 8 vided in connection with a funeral, alternative to a funeral, or 9 final disposition of human remains. 10 (M) "LIMITED DEATH BENEFIT POLICY" MEANS A LIFE INSURANCE 11 POLICY THAT HAS A DEATH BENEFIT EQUAL TO THE SUM OF THE PREMIUMS 12 PAID AT THE TIME OF DEATH FOR A PERIOD OF TIME NOT TO EXCEED 2 13 YEARS AFTER THE POLICY IS ISSUED, PLUS INTEREST ON THE PREMIUM 14 PAID AT THE RATE OF 10% COMPOUNDED ANNUALLY. 15 (N)(m)"Nonassociated life insurance policy or annuity 16 contract" means a life insurance policy or annuity contract that 17 is not marketed to be assigned, designed to be assigned, or 18 intended to be assigned as payment for cemetery goods or services 19 or funeral goods or services. 20 (O)(n)"Representative of insured's estate" means the 21 person or persons legally entitled to make the funeral arrange- 22 ments for the person whose life was insured. 23 (P)(o)"Seller" means a person who offers to sell ceme- 24 tery goods or services or funeral goods or services or any agent, 25 officer, or employeethereofOF THAT PERSON. 02673'99 Final page. 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