Section 23.20. General.

 

(1)  An insurance intermediary may sell a life insurance or annuity policy for the purpose of funding a prearranged funeral plan only if:

(a) The insurance intermediary is an authorized and appointed agent under s. 445.125 (3m) , Stats. of the funeral director or funeral establishment which provides the prearranged funeral plan; or

(b) The insurance intermediary does not, directly or indirectly, receive referrals or other marketing information from a funeral director or operator of a funeral establishment or an agent of the funeral director or funeral establishment, sell the prearranged funeral plan, or participate in the sale of the prearranged funeral plan.

(2)  No insurer may accept an application which an insurance intermediary solicited in violation of sub. (1) or another provision of this chapter.

(3)  An insurer shall establish reasonable procedures to prevent violations of subs. (1) and (2) .

History: Cr. Register, July, 1997, No. 499 , eff. 10-1-97.