A late bill was introduced on May 4 that will amend Colorado's preneed laws.
This legislation resulted from the 2016 Sunset Review of Division of Insurance regulations.Subsequently SB 17-249 mandated the Division of Insurance to study and report strategies to ensure compliance for preneed contract sellers.
In 2017, the Colorado Funeral Directors Association and representatives from the Division of Insurance conducted several meetings with industry stakeholders to discuss problems with existing preneed laws and gain consensus about compliance issues.
In the “Preneed Funeral Contract Seller Study Findings Report” issued by the Division of Insurance on September 1, 2017, the Division recommended three (3) significant amendments to Article 15 to gain necessary industry compliance.
Sponsored by Rep. Donald Valdez and Sen. Nancy Todd, HB 18-1440 will:
- Require that all registered funeral establishments also be licensed as preneed contract sellers;
- Require funeral establishments to identify the individuals who sell preneed funeral contracts at, or on behalf of, the establishment; and
- Create a preneed relief fund to provide restitution to preneed contract buyers.
The bill must pass through both houses before the General Assembly adjourns on Wednesday, May 9. If that does not happen, CFDA intends to pursue this legislation in the 2019 General Assembly.
For information and updates on this legislation: