CONSUMER FRIENDLY FUNERAL PROTECTIONS PASSES ASSEMBLY

Albany , NY -- May 12 -- The New York State Assembly has overwhelmingly passed the Funeral Consumer Protection Act which would indefinitely extend the State's protections for consumers who prepay their funeral costs. The measure, which was originally enacted two years ago, is set to expire on June 1st.

The legislation, initiated by the state's funeral directors and sponsored by Senator Guy Velella (R-Bronx) and Assemblywoman Audrey Pheffer (D-Queens), requires that all money used to purchase funeral services or merchandise in advance of need be held in an interest bearing trust account, prohibits funeral directors from accepting any commission from an insurance company for the promotion of so-called "funeral insurance" and forbids
any company from compensating a funeral firm for inducing the sale of such policies. The bill also prohibits the "leveraging" of preneed monies placed in trust through surety bonds which would replace the actual funds in the trust account.

The legislation (S.2003/A.2003) is strongly supported by a partnership of senior/consumer advocates and funeral professionals, including AARP , NY StateWide Senior Action Council, NYS Coalition for the Aging, the Empire State Funeral Directors Association and the New York State Funeral Directors Association and its 750 members.

Supporters of the legislation say that funeral insurance naming a specific funeral firm as the beneficiary is a bad deal for consumers as it is not portable, does not grow with inflation and exposes the consumer to loss of all preneed funds if the costly premium payments are not kept up. The bill would have no effect on ordinary term life insurance which a consumer may purchase as a method to pay funeral and final costs.

"This year marks the tenth anniversary of the enactment of the nation's most progressive consumer friendly legislation in the area of funeral service", according to New York State Funeral Directors Association's Executive Director Bonnie Tippy. "We urge the Senate and the Governor to follow suit to keep New York State number one in guarding the interests of consumers who choose to prepay their funeral costs by passing and enacting the Funeral Consumer Protection Act before June 1st."

Click here for official Assembly vote totals