CHAPTER 55 SENATE BILL No. 506 An Act concerning prearranged funeral agreements, contracts and plans; amending K.S.A. 16-303 and repealing the existing section. Be it enacted by the Legislature of the State of Kansas:

Section 1. K.S.A. 16-303 is hereby amended to read as follows: 16-
303. (a) Except as authorized by K.S.A. 16-308, and amendments thereto,
all payments made under such agreement, contract or plan, and any earn-
ings or interest thereon, shall remain with such bank, credit union or
savings and loan association until the death of the person for whose serv-
ice the funds were paid or, except as provided in subsection (c), until
demand for payment is made by the purchaser of the merchandise or
services to the bank, credit union or savings and loan association, and
upon such payment to the purchaser, the contract shall terminate.

(b) At the option of a purchaser, any installment contract may provide
for additional payments by the purchaser for the cost of group credit life
insurance at such rate as is approved from time to time by the insurance
commissioner. In the event of the death of the purchaser, the proceeds
shall be treated as funds in accordance with K.S.A. 16-304, and amend-
ments thereto.

(c) At the option of the purchaser, such agreement, contract or plan
may be made irrevocable as to the retail price of a casket, urn and outside
burial container and as to the first $3,000 $3,500 of the funds paid plus
any and set aside at the direction of the purchaser. Any interest and
earnings accumulated under the agreement, contract or plan may also be
irrevocable. This option shall not prohibit the purchaser to designate a
different funeral home at any time prior to death, after written notice to
the current funeral home, and upon such notification all documents and
funds shall be transferred as necessary.

Sec. 2. K.S.A. 16-303 is hereby repealed.

Sec. 3. This act shall take effect and be in force from and after its
publication in the statute book.

Approved April 2, 1998

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