HB0181 • 2025

Funeral contracts-investment and bonding requirements.

AN ACT relating to insurance; amending investment authorization for prepaid or prearranged funeral contract proceeds; amending related surety bond provisions; specifying application of purchase monies and investment earnings; requiring notice to contract purchasers; and providing for effective dates.

Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor: Representative Larsen, L
Last action: 2025-02-27
Official status: enrolled
Effective date: 7/1/2025

Plain English Breakdown

The official source does not specify that the law removes the requirement for higher surety bonds when money is invested in pre-need funeral trusts. It only states that rules promulgated by the commissioner shall not require any additional surety bond amount beyond the minimum required.

Funeral Contracts Investment and Bonding Requirements

This law changes how funeral homes can invest money from prepaid or prearranged funeral contracts, allowing them to put more types of investments without needing a higher bond.

What This Bill Does

Expands the types of investments that funeral home proceeds from prepaid or prearranged funeral contracts can be placed into, including irrevocable pre-need funeral trusts.
Requires funeral homes to inform buyers about possible investment risks and their rights to cancel or terminate a contract.
Specifies that once funds are deposited in an irrevocable trust, they cannot be withdrawn by the buyer or canceled by them.

Who It Names or Affects

People who buy prepaid or prearranged funeral contracts
Funeral homes and businesses selling such contracts

Terms To Know

Prepaid or Prearranged Funeral Contract: A contract that allows a person to pay for future funeral services in advance.
Surety Bond: An agreement where one party guarantees the performance of another's obligation, often used by businesses as financial security.

Limits and Unknowns

The law does not change contracts made before July 1, 2025.
It is unclear how funeral homes will implement these changes and inform buyers about their rights and risks.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

HB0181HS001

Standing Committee • House Revenue Committee

Adopted

Plain English: The amendment changes the word 'building' to 'savings' in a section of HB0181 related to insurance.

Replaces the term 'building' with 'savings' in the bill text.

The exact context and implications of changing from 'building' to 'savings' are not clear without additional information about how these terms were used originally.

Bill History

2025-02-27 LSO
Assigned Chapter Number 48
2025-02-27 Governor
Governor Signed HEA No. 0027
2025-02-24 Senate
S President Signed HEA No. 0027
2025-02-24 House
H Speaker Signed HEA No. 0027
2025-02-24 LSO
Assigned Number HEA No. 0027
2025-02-24 Senate
S 3rd Reading:Passed 30-0-1-0-0
2025-02-21 Senate
S 2nd Reading:Passed
2025-02-20 Senate
S COW:Passed
2025-02-19 Senate
S Placed on General File
2025-02-19 Senate
S09 - Minerals:Recommend Do Pass 4-0-1-0-0
2025-02-11 Senate
S Introduced and Referred to S09 - Minerals
2025-02-07 Senate
S Received for Introduction
2025-02-06 House
H 3rd Reading:Passed 61-0-1-0-0
2025-02-05 House
H 2nd Reading:Passed
2025-02-04 House
H COW:Passed
2025-01-28 House
H Placed on General File
2025-01-28 House
H03 - Revenue:Recommend Amend and Do Pass 8-0-1-0-0
2025-01-24 House
H Introduced and Referred to H03 - Revenue
2025-01-15 House
H Received for Introduction
2025-01-14 LSO
Bill Number Assigned

Official Summary Text

Bill Summary - 25LSO-0476

Bill No.:

HB0181

Effective:

7/1/2025

LSO No.:

25LSO-0476

Enrolled Act No.:

HEA No. 0027

Chapter No.:

Prime Sponsor:

Larsen, L

Catch Title:

Funeral contracts-investment and bonding requirements.

Has Report:

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.

Current Bill Text

Read the full stored bill text

25LSO-0476

ORIGINAL House

Bill No
.
HB0181

ENROLLED ACT NO. 27,

HOUSE OF REPRESENTATIVES

SIXTY-EIGHTH LEGISLATURE OF THE STATE OF WYOMING
2025 General Session

Be It Enacted by the Legislature of the State of Wyoming:

Section 1
.

W.S. 26
‑
32
‑
101(a) and (b) is amended to read:

26
‑
32
‑
101.

Supervision and audit of funds; approval of investment; promulgation of rules and regulations; licenses.

(a)

The department shall supervise and audit the funds derived by any person either residing in or doing business within the state, from prepaid or prearranged funeral contracts providing for the sale of caskets, burial vaults, monuments or memorials or any burial supplies and equipment and funeral services, if the sale is made, either outright or on the installment basis, prior to the demise of the person purchasing them or for whom they are purchased, with the merchandise or service, or both, to be delivered at a future date at time of need. All funds received from these contracts or arrangements by any person either residing in or doing business within this state shall be received, invested and withdrawn according to requirements the department approves. Investment in a bank, trust company or federal
building
savings
and loan association in Wyoming is an approved investment.

The deposit of funds received from the sale of these contracts or arrangements in irrevocable pre
‑
need funeral trusts, the funds of which are invested in compliance with W.S. 4
‑
10
‑
901 and 4
‑
10
‑
902, is an approved investment. Earnings, including interest, income and dividends, from any investment of an irrevocable pre
‑
need funeral trust may inure to the benefit of the seller of the prepaid or prearranged funeral contract, but shall be withdrawn from the irrevocable trust only upon the occurrence of an event that requires withdrawal of the corpus of the trust.

Neither the person purchasing a prepaid or prearranged funeral contract nor any person for whom the contract is purchased shall be entitled to terminate or cancel the contract or make demand for the funds paid for the contract after the funds are deposited into an irrevocable pre
‑
need funeral trust.

(b)

The commissioner shall promulgate rules and regulations for the purposes specified in subsection (a) of this section to include regulation of contract provisions and funds thereunder.

The rules shall require notice to buyers of prepaid or prearranged funeral contracts of the types of investments into which funds derived from the sale of these contracts may be deposited and the risks associated with those investments.

The rules shall require notice to buyers of the ability to cancel or terminate a contract or make demand for any amounts paid for the contract. Rules promulgated by the commissioner shall not require any additional surety bond amount for those monies deposited in an irrevocable pre
‑
need funeral trust and invested in compliance with W.S 4
‑
10
‑
902 beyond the minimum surety bond required of all persons deriving funds from prepaid or prearranged funeral contracts.

Section 2.

This act shall not alter, amend or impair contracts entered into before July 1, 2025.

Section 3.

The department of insurance shall promulgate all rules necessary to implement the provisions of this act.

Section 4
.

(a)

Except as provided by subsection (b) of this section, this act is effective July 1, 2025.

(b)

Sections 3 and 4 of this act are effective immediately upon completion of all acts necessary for a bill to become law as provided by Article 4, Section 8 of the Wyoming Constitution.

(END)

Speaker of the House

President of the Senate

Governor

TIME APPROVED: _________

DATE APPROVED: _________

I hereby certify that this act originated in the House.

Chief Clerk