436.010 through 436.080, RSMo Supp. 1967, neither prohibit nor authorize the sale of credit life insurance in connection with installment purchases of prearranged funeral plans. Sales of such insurance policies are permitted, provided that all statutory requirements relating to the sale of such insurance are met. Sections 436.010 through 436.080 govern the handling and investing of money collected only under prearranged funeral plans entered into after the effective date of those sections, October 13, 1965.

CONSTrruTIONAL LAW: Sections 436.010 through 436.080, RSMo Supp . 1967, neither prohibit nor authorize the sale of credit life insurance in con- nection ,n_ th instal.J.rent purchases of prearranged funeral plans . Sales of CONTRACTS : CREDIT LIFE INSURANCE: EMBALMERS: FUNERAL DIREC'roRS : FUNERAL PLANS: such insurance policies are permitted, provided that all statutory requirements relating to the sale of such insurance INSURANCE : STA'IUTES : are met. Sections 436.010 throuch 436.080 govern the handline and investing of money collected only under prearranged funeral plans entered into after the ef- fective date of those sectiona, October 13, 1965. Honorable Harold L. Holliday Representative 14th District 1220 East 31st Street Kansas City, Missouri 64109 Dear Representative Holliday: OPINION NO. 10 :\ugust 19, 1969 Fl LED ;o This is in response to your request for an op~n~on of this office concerning an interpretation of Chapter 436, RSMo Supp. 1967. In your original request you stated the questions as follmrs: 111. Under the provisions of that chapter, may a seller of prearranged fUneral aereements also sell the purchaser a cre- dit life policy issued by a bona fide l ife insurance company and charge the purchaser an extra premium t herefor? The cre- dit life policy is for the purpose of paying the balance due under the agreement in the event the purchaser dies before t he full amount has been paid. 11 112. Does the enactment of Chapter 436 affect prearranged fUneral agreements that were in effect prior to October, 1965, ,.,here the plan was fully paid for prior to October, 1965, or where the plan was in effect prior to 1965, but payments are being made subsequent to October, 1965? 11 Upon being asked to clarify the questions, you replied in part as follows: "The first question relates to whether or not it would be permitted, not compelled, for purchasers of a preneed fUneral plan to purchase credit life insurance issued by a bona fide life insurance company wi. th the premium being paid by the purchaser to the :funeral home • " "The second question relates to the manner of handling :funds collected under the provisions of pre-October J.965 contracts . I desire to know if the arrangements in effect on contracts issued prior to 1965 must be Honorabl e Harold L. Holliday converted or chanGed to the arrangements required under the present Chapter 435 RSMo; i.e., if the funds collected on the pre-October 1965 contracts were deposited in the trust fund maintained in an institution or corporation other than those specified in the present Chapter l~ 36 may continue to hold such funds in accordance with the contract and trust indenture executed prior to 1965. \ole desire to know if all funds collected on pre-October 1965 contracts must be handled in accordance llith the provisions in the present Chapter 436. This question relates to contracts fully paid for in 1965, as well as to contracts which were in effect prior to 1965 but on which payments have been made subsequent to October 1965 ." With respect to whether a policy of credit life insurance may be sold simultan- eously with a prearranged funeral agreement, we find nothing in Chapter 436 which prohibits such a sale . By the same token, however, nothing in Chapter 436 operates to exclude credit life insurance policies sold in connection 'v.Lth such agreements from other requirements relating to the sale of credit life policies . Consequently, all such sales of credit life insurance would come under and be governed by the sta- tutory provisions relating to sales of policies of such insurance. That is to say, a person who acts as an insurance agent is no less an insurance agent because the sale of insurance forms a part of thenegotiation for the sale of the agreement, it is possible that Chapter 436 would control the handling of the money collected therefor, and we repeat that no opinion is expressed on such issue . But, in no event can Section 436.010 or any other provision in that chapter be read as a pro tanto re- peal of the laws pertaining to the licensing of insurance salesmen and brolrers. Your second question presents the issue of whether the enactment of Chapter 436 by the Seventy-Third General Assembly governs prearranged funeral plans entered into prior to the effective date of that legislation (October 13, 1965) . Prior to that time Missouri had no statutes which specifical.ly regulated prearranged funeral plans . From the content of the sections comprising that chapter, it is obvious that they were intended as remedial measures, having as their purpose the correction or prevention of abuses arising from the retention of unearned funds for long periods of time by the sellers of such plans. The sections in question contemplate that the plans shall be effectuated by "a 'vritten agreement not in conflict herewith." Section 436.010. The money col- lected by the seller may be deposited only in certain types of institutions, Sec- tion 436.020, or placed in trust and invested under certain restrictions. Section 436.040. Provision is made for the purchaser to cancel his participation in the plan and retrieve the amount paid in, less that which may be retained by the seller according to statutory formula . Section 436.o6o. Hence, prior to October 13, 1965, a purchaser of a funeral plan 'm.s protected as to the handling of the money he invested in it only by the terms of his contract with the seller . Thereafter, any such agreement is "declared against public policy and void, unless all money paid thereunder is handled • • . " as provl.ded in Chapter 436. Criminal sanctions and injunctive measures are also provided for where the chapter is violated. Section 436.070, 436.o8o. He are ,.,ell aware of the rule that ". • • one of the cardinal principles of construing remedial legislation is that courts are to consider the evil sought to be cured and 'to make such construction as shall suppress the mischief, and advance - 2 - Honorable Harold L. Holliday the remedy and to suppress subtle inventions and evasions for the continuance of the mischief'." B-W Acceptance Corporation v. Benack, (Mo. App. , 1967) 432 S\·1 2d 215, 218. Unfortunately, we have before us a question ivhich encompasses all pre-October 1965 prearrangement funeral contracts without having those contracts before us • However, your clarif"ying statement concerning the contracts to which you refer describes them as ones under which "the fUnds collected •• • were deposited in the t:rust fund.. ma~t&ined-in- an inet-i t-ution-or-- corpora-t-±en- other -than-those-speci'fli-ed:--- in the present Chapter 436 • . • " and asks whether the funds may continue to be held in such manner, "in accordance with the contract and trust indenture executed prior to 1965. " Limiting this opinion to the contracts you describe, we believe that an affirmative answer is required for the reasons hereinafter stated. A well established rule of statutory construction is that legislative enact- ment are held to operate prospectively unless the contrary intent is shown clearly and unequivocally. In the case of Atchison v. Retirement Board, 343 S\-1 2d 25, the Supreme Court of Missouri quoted approvingly t'rom the case of State ex rel Heaven v. Ziegenbein, 144 Mo. 283, 45 SW 1099, as follows, l.c. 32: "* * *The rule is that legislative enactments are held 'to operate prospectively, and not otherwise, unless the intent that they are to operate in such an unusual way, to wit, re- trospectively, is manifest upon the face of the statute in a manner altogether tree t'rom ambiguity. ' ·JEo * *" Section 436.010 reads in part as follows: "Any agreement, contract or plan requiring the payment of money by a purchaser in a lump stnn or in installments 7 which is made or entered into with any person • • who, in consideration thereof, agrees to provide for the final disposition of a dead human body, • • • wherein • • • the funeral • • • is not iiDDediately required, is hereby de- clared against public policy and void, unless all money paid thereunder is handled in accordance with the pro- visions of Sections 436.010 to 436.0807 and subject to the terms of a written agreement not in conflict herewith A seller shall not be entitled to enforce any contract made in violation of Section 436.010 to 436.0807 but the purchaser or his heirs, or legal representatives, shall be entitled to recover all amounts paid to the seller under any contract made in violation hereof, and all amounts paid, whether or not paid to the seller, to any fund or for any investment, debenture, security, or contract in connection with the seller has violated the provisions of Sections 436.010 to 436.080, together with a reasonable attorney's fee therefor." Notwithstanding the obviously salutary purposes of that section and those i.ffiich follow it 7 it is our opinion that the legislature meant for Chapter 4 36 to operate only prospectively; that is, to control only those prearranged fUneral plans entered into after the effective date of the chapter regardless of whether - 3 - Honorable Harold L. Holliday such plans were fully paid at the time they were entered into or are still being Lni<l by insta~nts . In State ex rel. ration v . Jensen, (Mo. Supp. 1963), 363 m-1 2d , the Supreme Court of Missouri was required to interpret a ne\fly enacted statute which declared that any foreign corporation not licensed to do business in this state would be held to be doing business if it committed a tort in t-lissouri . 'lhe statute also authorized service of process upon the Secretary of State as agent for the foreign corporation. The specific issue presented ;.ras ,.,hether the statute applied to a suit instituted. after its effective date but arising out of a tort \vhich pre -dated the statute. There the Court said, l.c . 669-670: "He think that subsection 2, of Section 351.630 RSt-1o 1959, as amended Laws 1961, p . 257, VAt-~, evidences a clear in- tention on the part of the Legislature that the statute shall operate prospectively only . It expressly says : 'If a foreign corporation commits a tort .• This statement points to a happening in the future. The statute does not say, 'If a foreign corporation has committed a tort at somc~ime in the past, or before, this statute goes into effect' ." * * * * "Further, as a general rule, statutes are construed to operate prospectively unless the legislative intent that they be given retrospective or retroactive opera- tion clearly appears from the express lany~ge of the acts, or by necessary or unavoidable implication. " He do not believe that the language of Section 436.010 contains an~' such "necessary or unavoidable implication. On the contrary, it appears to evidence a contrary intent . Note that Section 436.010 declares the prearrangement p~ns null and void unless all money paid thereunder "is handled in accordance •.: · tl: Section 436.010 to 436 .o80." Like'rrise, that and subsequent sections condemn contracts "made in violation of Sections 436.010 to 436.080." In view of the fact that these sections did not exist prior to Octobe:r 13, 1965, and in view of the fact that, as in the Jensen case, supra, the statute spear-s in terms of the future (i.e., "Any agreement. . . which is made or entered into • . . , " not, "Any agreement . • • vrhich has been made . • . " ) , it is our opinion that Chapter 436 was intended to control and govern only those pre- arranged funeral plans which ;.rere entered into after the effective date of the chapter. CONCWSION It is the opinion of this office that Sections 436.010 through 436.080, RS~b Supp. 1967, neither prohibit nor authorize the sale of credit life insurance in connection with insta~nt purchases of prearranged funeral plans; and that, therefore, sale of such insurance policies are permitted, provided that all sta- - 4 - Honorable Harold L. Holliday tutory requirements relating to the sale of such insurance are ~t . It is further the opinion of this offi ce that Sections 436.010 through 436.080 GOvern the hand- ling and investing of money collected only under prearranged funeral plans entered into after the effective date of those sections, October 13, 1965. The foregoing opinion, •,:hich I hereby approve, was prepared by my Special Assistan~ Albert J . Stephan, Jr. ~y,J--f?~ JOHN C. DANFORTH Attorney General