HARRY HUGHES, Governor

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(II)  THE BUSINESS OF THE SELLER IS
DISCONTINUED;

(III)  THE SELLER IS UNABLE TO PERFORM
UNDER THE TERMS AND CONDITIONS OF THE PRE-NEED CONTRACT; OR

(IV)  THE BUYER FAILS TO PAY THE ENTIRE
CONTRACT PRICE BEFORE THE DEATH OF THE BENEFICIARY, AND THE
SELLER CONSIDERS THE PRE-NEED CONTRACT VOID.

(F) SCOPE OF SECTION.

(1)  A PRE-NEED CONTRACT IS NOT SUBJECT TO THE
RETAIL INSTALLMENT SALES ACT.

(2)  THE MAKING OF A PRE-NEED CONTRACT BY A
LICENSED MORTICIAN IS NOT THE PRACTICE OF INSURANCE
BUSINESS.

REVISOR'S NOTE: This section is new language derived
without substantive change from Art. 43, §
366A(a), (c), (d), (e), and (g).

In subsection (d)(l)(i) of this section, "banking
institution" is substituted for "bank, trust
company" in accordance with the terminology used
in FI § 1-101. The General Assembly may wish to
consider what institutions were intended to be
included, e.g., national banking associations,
credit unions, etc.

As to subsection (e)(3) of this section, the
General Assembly may wish to clarify if the term
"legal representative" is intended to include
"personal representative" or any other agency
relationship.

The reference in present Art. 43, § 366A(d) to a
seller maintaining a balance on deposit that
equals the total amount of all pre-need contract
payments and interest received is deleted as
unnecessary in light of the provisions of
subsections (d)(1) and (3) and (e)(2) of this
section.

Present Art. 43, § 366A(f) now appears in §§
6-504 and 6-508 of this title.

It is not clear what class of individuals the
General Assembly intended to regulate in present
Art. 43, § 366A(a) and (b).

Present Art. 43, § 366A(b) defines a "pre-need
contract" as one in which a "seller" agrees to
provide certain goods and services. Present Art.
43, § 366A(a) defines "seller" as a licensed