The Florida Senate

497.419  Cancellation of, or default on, preneed contracts.--

(1)  A purchaser, by providing written notice to the certificateholder, may cancel a preneed contract within 30 days of the date that the contract was executed provided that the burial rights, merchandise and services have not yet been used. Upon providing such notice, the purchaser shall be entitled to a complete refund of the amount paid, except for the amount allocable to any burial rights, merchandise or services that have been used, and shall be released from all obligations under the contract. This subsection shall apply to all items that are purchased as part of a preneed contract, including burial rights, regardless of whether such burial rights are purchased as part of a preneed contract or purchased separately.

(2)  A purchaser, by providing written notice to the certificateholder, may cancel the services, facilities, and cash advance items portions of a preneed contract at any time, and shall be entitled to a full refund of the purchase price allocable to such items. Any accumulated earnings allocable to such preneed contract shall be paid to the certificateholder upon such cancellation.

(3)  Subject to paragraphs (a) and (b) a purchaser may cancel the merchandise portion of a preneed contract by providing written notice to the certificateholder, and shall be entitled to a full refund of the purchase price allocable to the specific item or items of merchandise that the certificateholder cannot or does not deliver in accordance with this subsection.

(a)  Such refund shall be provided only if at the time that the certificateholder is required to fulfill its obligations under the preneed contract the certificateholder does not or cannot comply with the terms of the contract by actually delivering the merchandise, within a reasonable time, depending upon the nature of the merchandise purchased, after having been requested to do so.

(b)  In order to fulfill its obligations under the preneed contract, a certificateholder may elect either or both of the following options:

1.  Subcontract with a person located outside the certificateholder's market area to provide the merchandise; or

2.  Provide other items of equal or greater quality.

(4)  Each certificateholder shall provide in conspicuous type in its contract that the contract purchaser may cancel the contract and receive a full refund within 30 days of the date of execution of the contract. The failure to make such provision shall not impair the contract purchaser's right to cancellation and refund as provided in this section.

(5)  Upon breach of contract or failure of the certificateholder to provide funeral merchandise or services under a preneed contract, the contract purchaser shall be entitled to a refund of all money paid on the contract. Such refund shall be made within 30 days after receipt by the certificateholder of the contract purchaser's written request for refund.

(6)  If a purchaser is 90 days past due in making payments on a preneed contract, the contract shall be considered to be in default, and the certificateholder shall be entitled to cancel the contract, withdraw all funds in trust allocable to merchandise items, and retain such funds as liquidated damages. Upon making such withdrawal, the certificateholder shall return all funds in trust allocable to services, facilities, or cash advance items to the purchaser, provided that the certificateholder has provided the purchaser with 30 days' written notice of its intention to exercise any of its rights under this provision.

(7)  All preneed contracts are cancelable and revocable as provided in this section, provided that a preneed contract does not restrict any contract purchaser who is a qualified applicant for, or a recipient of, supplemental security income, temporary cash assistance, or Medicaid from making her or his contract irrevocable.

(8)  This section, as amended by s. 7, chapter 83-316, Laws of Florida, applies to preneed contracts entered into before October 1, 1993, and as amended by s. 98, chapter 93-399, Laws of Florida, applies to preneed contracts entered into on or after October 1, 1993.

(9)  Persons who purchase merchandise or burial rights pursuant to this chapter shall have the right to sell, alienate, or otherwise transfer the merchandise or burial rights subject to and in accordance with rules adopted by the board.

(10)  All refunds required to be made under this section to a purchaser who has canceled a contract must be made within 30 days after the date written notice of cancellation is received by the certificateholder.

History.--s. 8, ch. 28211, 1953; s. 10, ch. 65-393; s. 6, ch. 77-438; s. 1, ch. 78-276; s. 2, ch. 81-318; s. 2, ch. 82-159; ss. 7, 31, 32, 33, ch. 83-316; s. 10, ch. 88-139; ss. 99, 122, ch. 93-399; s. 105, ch. 96-175; s. 23, ch. 96-400; s. 1150, ch. 97-103; s. 151, ch. 2000-165.

Note.--Former s. 639.13.