AARP, SENIORS, FUNERAL DIRECTORS AND KEY LEGISLATORS ANNOUNCE BIPARTISAN PARTNERSHIP TO CONTINUE STRONG PROTECTIONS FOR CONSUMERS
WHO PREPAY FUNERAL COSTS

Albany, NY -- March 10 -- At a joint news conference today at the State Capitol, representatives from AARP, NY StateWide Senior Action Council, NYS Coalition for the Aging, the Empire State Funeral Directors Association and the New York State Funeral Directors Association announced the formation of a bipartisan partnership to support legislation that will make permanent protection for consumers who prepay their funeral costs.

Bills sponsored by State Senator Guy Velella (R-Bronx) and State Assemblywoman Audrey Pheffer (D-Queens) have been introduced that would indefinitely extend the provisions of the Funeral Consumer Protection Act of 2001 set to expire on June 1st of this year. That law requires all money used to purchase funeral services or merchandise in advance of need to be held in an interest bearing trust account, prohibits funeral directors from accepting any commission from an insurance company for the promotion of so-called “funeral insurance”, and forbids any company from compensating a funeral firm for inducing the sale of such policies.

“Older persons and their families are increasingly making the choice to plan for funeral and burial services in advance. It is very important that we continue New York State’s commitment of providing consumers with strong protections when purchasing these pre-need funeral goods and services,” said David Hodgkins, AARP New York State Executive Council Member.

According to Mike Widzowski, past president and director emeritus of the New York StateWide Senior Action Council, so-called “funeral insurance” is one of the worst scams ever perpetrated on senior citizens. “The insurance industry wants to divert their money away from fully protected trust accounts and stick it into the insurance companies’ pockets,” said Widzowski. “To make this con job work,” he added, “the companies want to pay off funeral directors to sell their terrible products.”

Greg Olsen, executive director of the NYS Coalition for the Aging, a membership organization representing community based senior service providers throughout the state, was equally strong in his views. “Under the guise of increased consumer choice, funeral insurance would be a major step backwards for New York State’s senior citizens,” Olsen stated. “Under this scheme, senior consumers – the individuals who most often pre-pay their funeral and burial costs – will lose control of the dollars they have invested for this very purpose. We have the nation’s strongest laws,” Olsen continued, “and we must maintain them and not be fooled by funeral insurance policies. For the sake of our seniors, let’s get this important legislation passed before June 1st.”

“People on fixed and/or limited incomes would be hurt the most if this legislation does not become law before June 1st. “ said David Haskell, president of the Empire State Funeral Directors Association, an organization of African-American funeral directors. “Why would they want to put at any risk the money consumers have worked so hard to save? All New Yorkers,” Haskell continued, “are entitled to a dignified funeral and burial. Let’s make sure that we don’t place this fundamental right in jeopardy.”

According to James P. Nolan, Jr., president of the New York State Funeral Directors Association: “It is absolutely essential that we keep all of our state’s laws that work so well to protect our consumers’ funeral and burial funds. These laws must not be sacrificed simply to enhance the bottom lines of a few preneed insurance companies. The legislation we’re supporting today would put a halt to their shameless attempts to use funeral directors to exploit the very same consumers we serve each and every day. Funeral directors do not want any part of such a scheme.”

News conference participants asserted that passage of this legislation (S.2003/A.2003) is vital to keep “New York State Number One in consumer protection to prevent the State’s consumers from being ripped off when they prefund their funerals”.

Editor’s Note: For more information, please contact Bonnie Tippy or Randy McCullough at the NYS Funeral Directors Association 518-452-8230; Bill Ferris at AARP 518-447-6712; John Eadie at StateWide Senior Action Council 518-436-1006; Greg Olsen at NYS Coalition for the Aging 518-465-0641.