16-303.   Same; paymentsand earnings; credit life insurance; irrevocable agreements.(a) Except as authorized by K.S.A. 16-308, and amendments thereto, all paymentsmade under such agreement, contract or plan, and any earnings or interestthereon, shall remain with such bank, credit union or savings and loanassociation until the death of the person for whose service the funds were paidor, except as provided in subsection (c), until demand for payment is made bythe purchaser of the merchandise or services to the bank, credit union orsavings and loan association, and upon such payment to the purchaser, thecontract shall terminate.

      (b)   At the option of a purchaser, any installment contract mayprovide for additional payments by the purchaser for the cost of groupcredit life insurance at such rate as is approved from time to time bythe insurance commissioner. In the event of the death of the purchaser,the proceeds shall be treated as funds in accordance with K.S.A. 16-304,and amendments thereto.

      (c)   At the option of the purchaser, such agreement, contract or plan may bemade irrevocable as to the retail price of a casket, urn and outside burialcontainer and as to the first $5,000 of funds paidand set aside at the direction of the purchaser. Anyinterest andearnings accumulated under the agreement, contract or plan may also beirrevocable. This option shallnot prohibit the purchaser to designate a different funeral home at any timeprior to death, after written notice to the current funeral home, and upon suchnotification all documents and funds shall be transferred as necessary.

      History:   L. 1953, ch. 54, § 3;L. 1973, ch. 86, § 3;L. 1976, ch. 97, § 3;L. 1982, ch. 90, § 1;L. 1983, ch. 76, § 3;L. 1989, ch. 48, § 72; L. 1991, ch. 68, § 2;L. 1998, ch. 55, § 1;L. 2004, ch. 41, § 1; July 1.