2006 Utah Code - 58-9-701 — Preneed contract requirements.

     58-9-701.   Preneed contract requirements.
     (1) Every preneed funeral arrangement sold in Utah shall be evidenced by a written contract. The provider shall file the form of the contract with the division. Approval of the contract by the division is required before:
     (a) any representation may be made by a provider or sales agent to a potential buyer; or
     (b) any sale.
     (2) Each preneed contract form approved by the division shall:
     (a) be written in clear and understandable language printed in an easy-to-read type size and style;
     (b) bear the preprinted name, address, telephone number, and license number of the provider obligated to provide the services under the contract terms;
     (c) be sequentially numbered by contract form;
     (d) clearly identify that the contract is a guaranteed product contract;
     (e) provide that a trust is established in accordance with the provisions of Section 58-9-702;
     (f) if the contract is funded by an insurance policy or product, provide that the insurance policy or product is filed with the Insurance Department and meets the requirements of Title 31A, Insurance Code; and
     (g) conform to other standards created by rule under Title 63, Chapter 46a, Utah Administrative Rulemaking Act, to protect the interests of buyers and potential buyers.
     (3) No modification of the form, terms, or conditions of the preneed contract may be made without the prior written approval of the division. The division may not unreasonably withhold approval.
     (4) A preneed contract shall provide for payment by the buyer in a form which may be liquidated by the provider within 30 days after the day the provider or sales agent receives the payment.
     (5) A preneed contract may not be revocable by the provider except:
     (a) in the event of nonpayment; and
     (b) under terms and conditions clearly set forth in the contract.
     (6) (a) A preneed contract may not be revocable by the buyer or beneficiary except:
     (i) in the event of:
     (A) a substantial contract breach by the provider; or
     (B) substantial evidence that the provider is or will be unable to provide the personal property or services to the beneficiary as provided under the contract; or
     (ii) under terms and conditions clearly set forth in the contract.
     (b) The contract shall contain a clear statement of the manner in which payments made on the contract shall be refunded to the buyer or beneficiary upon revocation by the beneficiary.
     (7) A preneed contract shall provide the buyer the option to require the provider to furnish a written disclosure to a person who does not live at the same residence as the buyer. The buyer may choose:
     (a) a full disclosure containing a copy of the entire preneed contract;
     (b) a partial disclosure informing the recipient of:
     (i) the existence of a preneed contract; and
     (ii) the name, address, telephone number, and license number of the provider obligated to provide the services under the preneed contract; or

---

     (c) not to require the provider to furnish a written disclosure to another person.

Enacted by Chapter 49, 2003 General Session