URGE your Reps to vote "NO"! This seems like just another case of an industry and its lobby BUYING our Legislators. I heard about this on Andre Trevigne's radio show. Apparently, the Legislature is trying to get involved in PRIVATE CONTRACT actions. They want to allow the sellers of Funeral Policies to renege on their insurance contracts. My mom bought a burial policy on my entire family back in the early '60's. It has a very small "cash value" (something like $300 per insured) which was "reasonable" when she bought it, i.e., that's what a funeral cost back then. The big "catch" of the policy (up to now) is that you have to take the exact benefits in the policy (i.e., an ugly wooden/grey-lined box for a coffin), or you basically have to full price. So, if your family wants the big brass coffin, all you get is the small face value of the policy. BUT, you know that going in. And, so far, my grandfather and father have been buried under these policies and we opted for the grey box. And, because our family doesn't really "care" about the "grey box" we'll all be buried that way - using the policy that was bought and paid for IN THE 1960's. But, NOW, the Legislature apparently wants to change the rules to favor the funeral insurance sellers. And, apparently, the funeral insurance business has a good lobby because now they are trying to make it so that ALL they have to pay is the small face value amount. I say "apparently" because of section 3 (see below) of the Act. Does that section mean all claims (i.e., ALL insurance policies which may come due) which may ever come into existance? I guarantee you that the funeral insurance industry will attempt to define it as such. This should be ILLEGAL. And, if they are going to do this for FUTURE insurance policy sales, they should also impose RIGOROUS disclosure and explanation rules to make sure people KNOW exactly what they are buying. Failure to DISCLOSE and EXPLAIN (in LARGE print with the insured signing off on this aspect), should make this "payment of face value ONLY" policy nonenforceable. Call or e-mail your representative and urge him to either vote "NO" on this legislation or to make it CLEARER and impose strict disclosure requirements on the funeral insurance business. HLS 04-1549 ORIGINAL Regular Session, 2004 HOUSE BILL NO. 1043 BY REPRESENTATIVES TOWNSEND, BRUNEAU, CURTIS, HEBERT, HUDSON, HUNTER, MARCHAND, MURRAY, RITCHIE, TUCKER, AND WALSWORTH INSURANCE/POLICIES: Provides for cash payment of the face amount of funeral insurance policy AN ACT 1 To amend and reenact R.S. 22:253(A), relative to funeral insurance policies; to provide for face value; to provide for payments; to provide for application; and to provide for related matters. Be it enacted by the Legislature of Louisiana: Section 1. R.S. 22:253(A) is hereby amended and reenacted to read as follows: ยง253. Funeral described; benefits payable A. Every funeral policy shall state the dollar value of the funeral to be furnished and shall specify therein those benefits which shall constitute the funeral to be furnished. If upon the death of the insured, the dollar value of the funeral to be furnished, as stated in the policy or policies, is not sufficient to purchase the funeral benefits specified in the policy or policies, the beneficiary shall be entitled to a cash payment which shall be equal to one hundred percent of the face amount of the policy or policies. Section 3. The provisions of this Act shall be applicable to all claims existing or actions pending on its effective date and all claims arising or actions filed on or after its effective date. BTW, the "bold" portion is what the funeral insurance lobby is looking to add to the section which is already in place.
