PA 16-20—SB 189
General Law Committee
AN ACT CONCERNING IRREVOCABLE FUNERAL SERVICE CONTRACTS
SUMMARY: This act increases, from $5,400 to $8,000, the maximum allowable amount of an irrevocable funeral service contract.
A funeral service contract requires compensation in exchange for funeral, burial, or related services or providing certain items, where use or delivery of the services or items is not immediately needed. Compensation may take the form of a monetary payment, the delivery of securities, or the assignment of a death benefit under a life insurance policy. Such a contract is sometimes referred to as a “prepaid” or “pre-need” funeral service contract because the person making the contract is paying for services to be provided in the future.
EFFECTIVE DATE: July 1, 2016
OLR Tracking: KLM; DC; PF; bs