I hope this memo finds you well. As your Legislative Committee Chair, I am writing to provide you with an important update on recent developments regarding legislation for a declinable preneed guarantee fee. This emergency legislation is set to go into effect in January. This directly impacts our profession and the attached memo shares the current details of this legislation. The VFDA board will vote on our position with this action during our meeting in September and will recommend changes to the General Assembly. If you wish for your voice to be heard, please reach out to your district representative no later than September 1 to share your thoughts.
The contact information for each districts representative is listed below:
· Central District – Margaret Edie – margaret@morrissett.com
· Northern District – Gary Maxwell – liongem1@yahoo.com
· Shenandoah District – Lindsey Whitmore – lindsey.whitmore@dignitymemorial.com
· Tidewater District – Eric Wray – ericwray@icloud.com
· Southside District – Paul Whitten – paul.whitten@dignitymemorial.com
· Blue Ridge District – Robert Givens – rgivens9@verizon.net
· Southwest District – Amanda Perry – amanda@perrycremation.com
Daniel Woodfin
August 8, 2024
UPDATE TO MEMBERS ON SB521; PRENEED FUNERAL CONTRACTS
Declinable preneed funeral guarantee fee
Our 2024 Legislative Agenda had, as it’s main piece of legislation, SB521 patroned by Senator Angelia Williams Graves. The legislation sought to allow funeral homes that sell preneed insurance to have the option of charging a fee to guarantee preneed items and gave purchasers of the preneed policy the option to decline the fee.
The bill passed without issue and instructed the Board of Funeral Directors and Embalmers to fast-track promulgation of regulations to implement the provisions of the act – within 280 days of enactment. The bill was signed by Governor Youngkin on March 28, 2024, and the 280 days will be January 2, 2025.
During the process, it was missed that the legislation defined “Declinable preneed funeral guarantee fee” to include the full funeral contract price, not just the preneed items. As a result, we will come back during the 2025 legislative session to clear up the definition.
As the Regulatory Advisory Panel worked through the regulations to add language consistent with the legislation, there was a section, “Supplies and Services Purchased” in which language congruent with other changes was not made as requested. While not including it would not change the code or the content of a signed preneed agreement, it would certainly make it very clear that the guarantee would be only on a fully paid contract. We should seek to add appropriate language to clarify that. The following was suggested:
“If goods and services are guaranteed by prefinancing and/or payment of a declinable preneed guarantee fee, and your contract is fully paid or funded at the time of your death, no additional cost will incur for your family or estate even thought the actual prices of goods and service may increase between the date of this contract and the time of need. (Please see the disclosure document.)”
Your Legislative Affairs Committee is pursuing the changes on behalf of the VFDA and will keep you posted as we continue the process.
