Section 930.60 Preneed Funeral Contracts or Prearrangements

Section 930

Section 930.60  Preneed

Funeral Contracts or Prearrangements

a)         The following information shall be given in writing to the

applicant at the time an application is made, prior to accepting the

applicant's initial premium or deposit for a preneed funeral contract or

prearrangement as defined in Section 930.50(j) which is funded or to be funded

by a life insurance policy:

1)         the fact that a life insurance policy is involved or being

used to fund a prearrangement,

2)         the nature of the relationship among the soliciting agent or

agents, the provider of the funeral or cemetery merchandise or services, and

any other person,

3)         the relationship of the life insurance policy to the funding

of the prearrangement and the nature and existence of any guarantees relating

to the prearrangement,

4)         the impact on the prearrangement:

A)        of any changes in the life insurance policy including but not

limited to, changes in the assignment, beneficiary designation or use of the

proceeds,

B)        of any penalties to be incurred by the policyholder as a result

of failure to make premium payments,

C)        of any penalties to be incurred or monies to be received as a

result of cancellation or surrender of the life insurance policy,

5)         the fact that the family or representative of the deceased has

the right to change the choice of the provider of the funeral/cemetery

merchandise and services upon the demise of the insured,

6)         an itemized list of the merchandise and services which are

applied or contracted for in the prearrangement and all information concerning

the price of the funeral service, including an indication that the purchase

price is either guaranteed at the time of purchase or to be determined at the

time of need,

7)         all information concerning:

A)        the disposition of any proceeds from the policy in excess of

the amount needed to fund the prearrangement; and

B)        any remaining or outstanding obligations of the esta

rning

the price of the funeral service, including an indication that the purchase

price is either guaranteed at the time of purchase or to be determined at the

time of need,

7)         all information concerning:

A)        the disposition of any proceeds from the policy in excess of

the amount needed to fund the prearrangement; and

B)        any remaining or outstanding obligations of the estate for

payment of any difference between the amount actually needed to fund the

prearrangement and the life insurance policy proceeds; and

C)        payment of proceeds to a secondary beneficiary in the event the

policy proceeds exceed the prearranged costs of the funeral/cemetery

merchandise and services,

8)         any penalties or restrictions, including but not limited to

geographic restrictions or the inability of the provider to perform, on the

delivery of merchandise, services or the prearrangement guarantee.

b)         No person shall be designated the owner of a life insurance

policy used to fund a prearrangement if the person's only insurable interest in

the insured is the receipt of the proceeds from the policy or in naming who

shall receive the proceeds.  Such persons would include the funeral home

providing the services and the insurance producer who sold the policy.