QUESTION
               Whether the owner of a life insurance contract in the state of Georgia can irrevocably
                  assign rights to the contract to a funeral home for payment of funeral expenses upon
                  death.
               
               ANSWER
               For the reasons stated below, it is our opinion that this is a legal assignment of
                  a life insurance contract under the laws of the state of Georgia.
               
               BACKGROUND
               According to the information made available to us, on March 3, 2005, Social Security
                  beneficiary Ellen E. W~ executed an irrevocable "assignment of life insurance certificate
                  for funeral expenses" in favor of the Towns Funeral Home.
               
               DISCUSSION
               There is minimal statutory and case law on this subject. The relevant statute provides:
               It shall be unlawful for any insurer writing any type of life insurance, by whatever
                  term described, upon the lives and citizens of this state to enter into any contract
                  with any funeral director or undertaker, providing that such funeral director or undertaker
                  shall conduct the funeral of persons insured by such insurer.
               
               Ga. Code Ann. § 33-1-11 (2005).
               As you noted in your correspondence, it would appear that this Georgia Code provision
                  would relate to an assignment of life insurance for funeral expenses. We contacted
                  the Georgia Insurance Commissioner's office for an interpretation of § 33-1-11. On
                  June 30, 2005, Steve S~, Senior Investigator, Consumer Services Division, responded
                  to our request regarding the State of Georgia's interpretation of § 33-1-11. In part,
                  Mr. S~ wrote:
               
               The law is focused on the point at which the policy is applied for by the applicant
                  and issued to the insured/owner. It is at this point that agreements would likely
                  be reached between the insurer, insured and funeral provider that could limit the
                  insured or family members choice. After the policy is issued, however, the insured/owner
                  of the contract has and should have wide discretion on how the benefits of the contract
                  will be applied. . . . Nothing under the present code would preclude the owner from
                  assigning benefits to the funeral home and I am not aware of any law or means of preventing
                  the owner of making the assignment irrevocable. Certainly, a life insurance contract
                  is the private property of the insured and should be conferred in whatever manner
                  the owner of the policy desires. In this instance, the insurer is not and has not
                  entered into a contract with the funeral home but rather is being directed by their
                  insured after the policy was issued.
               
               The State of Georgia is concerned with preventing insurance fraud and illegal competition
                  during the initial sale and execution of life insurance contracts by insurance providers
                  and funeral home operators. See Blackmon v. Gulf Life Ins. Co., 175 S.E. 798 (1934). After the execution of a life insurance contract, the individual
                  owner of the contract is allowed under Georgia law to assign the contract as noted
                  above. Thus, the irrevocable "assignment of life insurance certificate for funeral
                  expenses" by Ms. W~ to the Towns Funeral Home is valid.
               
               CONCLUSION
               The irrevocable "assignment of life insurance certificate for funeral expenses" by
                  Ms. W~ to the Towns Funeral Home is valid.
               
               Deana R. E~
Regional Chief Counsel, Region VIII
               
               By:___________________________
Thomas S. I~
Assistant Regional Counsel