Section 23.70. Marketing procedures.

 

(1)  The insurer shall establish and implement written marketing procedures for funeral policies to ensure compliance with solicitation, disclosure, and suitability requirements.

(2)  The insurer shall train and monitor its agent force to ensure compliance with the written marketing procedures and provide each a copy of the written procedures.

(3)  The insurer shall maintain a copy of the marketing procedures.

(4)  The insurer shall maintain a copy of the list of funeral goods and services contracted for in the prearranged funeral plan at the time of the application.

(5)  No insurer may accept an application unless the application is complete and on a form approved under s. 631.20 , Stats., and in compliance with this section.

(6)  The insurer shall provide the following disclosures and statements and ask the following questions on the application form in print no less than 12 point type:

[Disclosures]

The total price of the prearranged funeral plan.

Whether the cost of the final expenses is or is not guaranteed.

The minimum dollar amount of the death benefit payable under the funeral policy.

1.The total amount of premium the applicant will pay for the funeral policy, including total premium to be paid for a multi-pay policy.

[Statements]

You should not need more than one life insurance policy to fund a prearranged funeral plan.

If you have an existing life insurance policy or annuity, you may be able to assign some or all of an existing policy's benefits to fund the prearranged funeral plan rather than purchase an additional insurance policy.

It may not be in your best interests to borrow on the cash value of an existing life insurance policy to pay the premium on a funeral policy that will be used to fund a prearranged funeral plan.

The life insurance or annuity policy you are purchasing may not fully fund the costs of the funeral goods and services provided.

[Questions]

Do you have another life insurance or annuity policy in force?

a. If so, with which company?

b. If so, do you intend to replace your current insurance policy with this policy?

Do you presently have a prearranged funeral plan of any kind with a funeral home?

If so, do you intend to replace the funding of your existing prearranged plan with this policy?

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