What happens when the beneficiary of a funeral policy refuses to sign after the person passes.

I do not believe you can "force" a beneficiary to collect on a policy. If the beneficiary simply does not want the funds on personal grounds, if he will at least cooperate in disclaiming the policy proceeds in some fashion, that may work to have the funds come to the heirs-at-law, meaning the closest kin (besides the beneficiary who is disclaiming), who may then collect the proceeds. A disclaimer is typically a document filed with the Court indicating a person is refusing an inheritance or other beneficial rights. Otherwise, you will likely be looking for your attorney to file some sort of petition asking the local probate judge for instructions or an order to require the beneficiary to sign off (or the clerk to sign off in lieu of the beneficiary) and then requiring the policy funds toward payment of the funeral. The likelihood of success of such a petition to the Court could be estimated by the attorney after some research.