AN ACT
ENTITLED, An Act to revise the requirements for 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. A society shall honor the request of the owner of a benefit contract to assign the contract to, or designate an irrevocable beneficiary of, a trust which provides for the payment of funeral or burial related expenses and is established by the insured, the insurer, or owner of the benefit contract, unless the request does not conform to the laws or rules of the society. In no event may the certificate proceeds paid to such a trust exceed the actual funeral or burial related expenses incurred.
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. A society shall honor the request of the owner of a benefit contract to assign the contract to, or designate an irrevocable beneficiary of, a trust which provides for the payment of funeral or burial related expenses and is established by the insured, the insurer, or owner of the benefit contract, unless the request does not conform to the laws or rules of the society. In no event may the certificate proceeds paid to such a trust exceed the actual funeral or burial related expenses incurred.
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. A society shall
honor the request of the owner of a benefit contract to collaterally assign the contract to, or make an
irrevocable beneficiary designation of, a funeral home solely for the payment of funeral or burial
related expenses, unless the request does not conform to the laws or rules of the society.
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
An Act to revise the requirements for the assignment of certain funeral benefits.
other property not exempt. However, if the owner of the certificate is other than the insured, the proceeds are payable to the owner.
An Act to revise the requirements for the assignment of certain funeral benefits.
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I certify that the attached Act originated in the
HOUSE as Bill No. 1254
____________________________
Chief Clerk ____________________________
Speaker of the House
Attest:
____________________________
Chief Clerk
____________________________
Attest:
____________________________
Secretary of the Senate
House Bill No. 1254 File No. ____ Chapter No. ______ |
Received at this Executive Office this _____ day of _____________ ,
20____ at ____________ M.
By _________________________
for the Governor
The attached Act is hereby
approved this ________ day of
______________ , A.D., 20___
____________________________
Governor STATE OF SOUTH DAKOTA, ss.
Office of the Secretary of State
Filed ____________ , 20___
____________________________ Secretary of State
By _________________________ |
