HB0181

Bill Summary - 25LSO-0476 Bill No.: HB0181 Effective: 7/1/2025 LSO No.: 25LSO-0476 Enrolled Act No.: HEA No. 0027 Chapter No.: 48 Prime Sponsor: Larsen, L Catch Title: Funeral contracts-investment and bonding requirements. Has Report: No Subject: Prepaid or prearranged funeral contract investment authorization and surety bond requirements. Summary/Major Elements: Under current law, funeral homes can sell contracts to a living person that provide for funeral services at the end of a person's life. These contracts are regulated by the Wyoming Department of Insurance. Department rules provide limits on how the proceeds from these contracts can be invested by a funeral home. Specifically, unless a higher surety bond is provided, current law allows the proceeds to be invested only in a bank, trust company or federal savings and loan association. This bill expands investment authorization to include investment in an irrevocable pre-need funeral trust, without the requirement to pay a higher surety bond amount. Once funds are deposited in a pre-need funeral trust, they cannot be withdrawn by the person who purchased the prepaid or prearranged funeral contract, nor can the contract be cancelled by that person. Further, all earnings from an investment in a pre-need funeral trust can be withdrawn only upon the happening of an event (typically the death of the purchaser) that requires withdrawal of the corpus of the trust. The Department of Insurance is required to promulgate rules that require notice to buyers of prepaid or prearranged funeral contracts of the types of investments into which contract proceeds can be invested and the associated risks. The rules also must require notice of the ability of the purchaser to terminate a contract and demand refunds. The above summary is not an official publication of the Wyoming Legislature and is not an official statement of legislative intent. While the Legislative Service Office endeavored to provide accurate information in this summary, it should not be relied upon as a comprehensive abstract of the bill.