Recommendations from the 2016 Sunset Review of Colorado Division of Insurance functions were addressed at the State legislature's Senate Business, Labor & Technology committee hearing on January 30.
Representing the funeral industry, Matt Whaley, from SCI Colorado Funeral Services, and John Horan, CMSP, from Horan & McConaty Funeral Services, explained their concerns that proposed regulations would unfairly penalize licensed Preneed Contract Sellers.
During the last 10 years, consumers have reportedly suffered losses of more than $2,000,000 from preneed contracts sold by unlicensed businesses.
In her testimony before the Senate committee, CFDA's Executive Director, Steffani Blackstock, stated that there are 72 licensed Preneed Contract Sellers in Colorado representing approximately 125 funeral establishments. In comparison, there are more than 200 funeral establishments registered with DORA and many are believed to "sell or offer to sell" preneed contracts without a Preneed Contract Seller license.
"Better oversight is needed from the Division of Insurance to enforce existing statutes and the license requirement for all businesses that provide funeral goods and services according to the definition of 'preneed contract'."
The Sunset recommendations are expected to be on the agenda at next week's hearing of the Senate Business, Labor & Technology committee.