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MaineLD 867132nd Maine Legislature (2025-2026)HouseWALLET

An Act Regarding Pre-need Funeral Insurance

Sponsored By: Joshua Morris (Republican)

Became Law

INSURANCEINSURANCE - FUNERAL INSURANCE

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 5 benefits, 0 costs, 0 mixed.

Life insurance to fund your plan

You can assign a pre-need insurance policy to the funeral home to pay for the goods and services you chose. The policy amount cannot be more than the total price in your contract, and the assignment must be in a written, signed agreement. You can also assign or designate a life insurance policy to a mortuary trustee so the trust gets the proceeds at death. That agreement must be in writing, given to you or your representative, state what happens to any extra money and fees, and, if irrevocable, allow a new trustee to be named. The trustee must keep records available for you or your representative to inspect.

Stronger safeguards for pre-need trust money

Money you pay in advance must be deposited into a separate mortuary trust account within 10 days. The account must be in safe, allowed investments like insured bank accounts, U.S. bonds, certain municipal bonds, or permanent life insurance (not variable or annuities) from an authorized insurer. Banks must send you a written deposit notice within 30 days, and again after any direct transfer. The funeral provider can withdraw funds only with a certified death certificate and must use the money as your agreement says. Trustees cannot take insurance commissions for buying allowed insurance inside the trust.

Tighter rules for pre-need insurance sales

The law stops pressure sales and steering in pre-need funeral insurance. Funeral homes and insurers cannot lock you into a specific provider or have funeral homes act as insurance agents. You can still buy a policy if you contact the provider first, but the sale must follow Maine law. Before taking your first payment, the seller must disclose who is involved, what is covered, prices and guarantees, limits on the policy amount, what happens if money is short or extra, any penalties or limits, and any commissions paid. These rules do not block legal assignments or beneficiary choices allowed under state insurance law.

State rules for pre-need contracts

The state board sets technical rules for the form and content of prearranged funeral contracts funded by pre-need insurance. These rules make contracts more consistent and easier to understand.

Commissions for dual-licensed providers

A funeral services licensee who also holds an insurance producer license may receive sales commissions on pre-need insurance. This applies only when the person is properly licensed as both.

Sponsors & Cosponsors

Sponsor

  • Joshua Morris

    Republican • House

Cosponsors

  • Anne-Marie Mastraccio

    Democratic • House

  • David Haggan

    Republican • Senate

  • Joseph M. Baldacci

    Democratic • Senate

  • Paul Flynn

    Republican • House

Roll Call Votes

No roll call votes available for this bill.

Actions Timeline

  1. ACTPUB Chapter 203

    5/1/2026

  2. PASSED TO BE ENACTED, in concurrence.

    6/2/2025Senate

  3. PASSED TO BE ENACTED. Sent for concurrence. ORDERED SENT FORTHWITH.

    5/29/2025House

  4. Report READ and ACCEPTED, in concurrence.READ ONCE.Committee Amendment "A" (H-274) READ and ADOPTED, in concurrence.Under suspension of the Rules, READ A SECOND TIME and PASSED TO BE ENGROSSED AS AMENDED BY Committee Amendment "A" (H-274), in concurrence.Ordered sent down forthwith.

    5/28/2025Senate

  5. CONSENT CALENDAR - FIRST DAYUnder suspension of the rules CONSENT CALENDAR - SECOND DAY.The Bill was PASSED TO BE ENGROSSED as Amended by Committee Amendment "A" (H-274).Sent for concurrence. ORDERED SENT FORTHWITH.

    5/27/2025House

  6. Carried over, in the same posture, to the next special or regular session of the 132nd Legislature, pursuant to Joint Order SP 519.

    3/21/2025House

  7. The Bill was REFERRED to the Committee on HEALTH COVERAGE, INSURANCE AND FINANCIAL SERVICES in concurrence

    3/4/2025Senate

  8. Committee on Health Coverage, Insurance and Financial Services suggested and ordered printed. The Bill was REFERRED to the Committee on HEALTH COVERAGE, INSURANCE AND FINANCIAL SERVICES.Sent for concurrence. ORDERED SENT FORTHWITH.

    3/4/2025House

Bill Text

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