Wis. Admin. Code Funeral Directors Examining Board FD 6.07 - Standards for burial agreements funded by life insurance proceeds
A burial agreement shall be in written form that is clear and conspicuous, and shall include all of the following:
(1) The identity of the funeral establishment
and the insurer or insurers that the agent represents.
(2) The identity of the funeral establishment
that will be used to provide the funeral services or merchandise under the
agreement.
(3) The nature and
extent of any price guarantees for the funeral merchandise or funeral services,
or any other guarantees that exist.
(4) Information that a life insurance policy
is involved in or connected to, or is being used to fund, the burial
agreement.
(5) The type of
insurance instrument that is being used to fund the burial agreement.
(6) The effect on the burial agreement of all
of the following:
(a) Changing the life
insurance policy, including, but not limited to, changing the assignment of the
policy proceeds, changing the beneficiary designation, or changing the use of
the proceeds.
(b) Any penalties
incurred by the policyholder as a result of failing to make premium
payments.
(c) Any penalties
incurred or money received as a result of cancellation or surrender of the life
insurance policy.
(7) A
statement of funeral goods and services selected under the burial agreement and
the price of each item or service provided under the burial agreement,
including a statement as to whether the purchase price of the funeral
merchandise and services are guaranteed at the time the burial agreement is
arranged or whether the price is to be determined at the time of need. If the
price of funeral merchandise or services is to be determined at the time of
need, those prices may not exceed the prices as set forth in the funeral
establishment's general price list required under the funeral industry
practices regulations of the federal trade commission.
(8) All information concerning what occurs,
and whether any entitlements arise, if there is a difference between the
proceeds of the life insurance policy and the amount of money actually needed
to fund the burial agreement.
(9)
Any restrictions, including geographic restrictions, or penalties relating to
delivery or performance under the burial agreement, including any restrictions
or penalties relating to the inability of the operator of the funeral
establishment to perform.
(10) A
statement as to whether the sales commission or other form of compensation is
being paid to the agent who sells or solicits the sale of a burial agreement
and the life insurance used to fund the burial agreement and, if so, the
identity of any other persons to whom the commission or other compensation is
paid.
(11) The following statement
in not less than 12-point boldface type: "Burial agreements are regulated
by the Wisconsin Funeral Directors Examining Board. Should you have a
complaint, please contact the Board at 4822 Madison Yards Way, P.O. Box 8935,
Madison, Wisconsin 53708 or by telephone at (608) 266-2112."
Notes
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