Eligible funeral contract buyers may seek limited repayment starting in 2027

The Department of Consumer Protection provides restitution from the funeral service guaranty account. Eligible people include a contract buyer or beneficiary, a beneficiary's estate, or the beneficiary's legally authorized agent. The contract must have been entered into on or before July 1, 2026. Payments are limited to the account balance available for restitution. To apply, a person must provide the original contract, proof of services provided, proof of eligibility, and proof of payment for funeral or burial services not provided under the contract. A court order against the provider may be considered but is not required. The department begins providing restitution on and after July 1, 2027.

The Department of Consumer Protection may pay less than a claimant's loss, up to $10,000 for one contract. The $10,000 maximum applies to each funeral service contract. The amount paid may be less than the claimant's actual loss or a restitution award. Claims that cannot be paid for lack of funds are satisfied in the order they were decided when enough money is deposited.

A purchaser must sign a statement in the written contract confirming they received the state's funeral contract fact sheet and time to review it before signing. The statement is required in written funeral service contracts. This requirement takes effect July 1, 2026.

A working group studies prepaid funeral contracts and recommends consumer protections and whether to establish a guaranty fund. The group includes lawmakers, state officials, and representatives of funeral directors, banks, and insurance companies. The group must submit its final report by January 1, 2027, and an initial report by December 1, 2027.