FOR AN ACT ENTITLED, An Act to permit the assignment of certain funeral benefits.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
    Section 1. That § 58-37A-17 be amended to read as follows:
    58-37A-17. The owner of a benefit contract may change the beneficiaries in accordance with the laws or rules of the society unless the owner waives this right by specifically requesting in writing that the beneficiary designation be irrevocable. A society may, through its laws or rules, limit the scope of beneficiary designations and shall provide that no revocable beneficiary may obtain any vested interest in the proceeds of any certificate until the certificate has become due and payable in conformity with the provisions of the benefit contract. An irrevocable assignment of ownership or an irrevocable beneficiary designation may be made to a trust established by the insured, the owner of the policy or contract, or the society, which shall provide for the payment for any funeral or burial related expenses designated in the trust and for any payment due the beneficiaries entitled thereto or, if applicable, the estate of the insured. A society may not make payments in excess of the amount of funeral or burial related expenses to a trust established by the funeral home or funeral director.

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    A society may provide for the payment of funeral benefits to the extent of the portion of any payment under a certificate as might reasonably appear to be due to any person equitably entitled to it by reason of having incurred expense occasioned by the burial of the member. However, the portion so paid may not exceed the sum of ten thousand dollars. A society shall honor any valid collateral assignment that is properly executed including an irrevocable assignment or irrevocable beneficiary designation for the payment of incurred funeral or burial related expenses. Unless the society has its own collateral assignment form readily available, the society shall accept a collateral assignment form prescribed by the director by rule pursuant to chapter 1-26.

    If, at the death of any person insured under a benefit contract, there is no lawful beneficiary to whom the proceeds are payable, the amount of the benefit, except to the extent that funeral benefits may be paid as provided in this chapter, is payable to the estate of the deceased insured the same as other property not exempt. However, if the owner of the certificate is other than the insured, the proceeds are payable to the owner.