Section 23.80. Suitability.

 

(1)  An insurer shall establish written suitability standards to assure that inappropriate, unsuitable or excessive insurance is not sold or issued to fund prearranged funeral plans.

(2)  An insurer shall require that the suitability standards include, but not limited to the following:

(a) The appropriateness of using a funeral policy to fund a prearranged funeral plan.

(b) The appropriateness of using an existing insurance policy to fund the prearranged funeral plan.

(c) The appropriateness of replacing any existing policy with a funeral policy.

(3)  The insurer shall train and monitor its insurance intermediaries to ensure compliance with the suitability standards in their sales practices.

(4)  An insurer or an insurance intermediary shall take an application or issue a funeral policy only if the funeral policy is suitable for the applicant.

History: Cr. Register, July, 1997, No. 499 , eff. 10-1-97; correction in (2) made under s. 13.93 (2m) (b) 1., Stats., Register, January, 2001, No. 541 .