Section 4.10 - Pre-need Insurance Policies and Annuities(1) Any agent or employee of any Licensed Funeral Establishment who sells or otherwise provides insurance policies or annuities as a method for funding Pre-need Funeral Contracts shall comply with all applicable state and federal laws and regulations pertaining to the conduct of the business of insurance, including but not limited to all licensing requirements of the Massachusetts Division of Insurance.(2) Any agent or employee of any Licensed Funeral Establishment who sells or otherwise provides insurance policies or annuities as a method for funding Pre-need Funeral Contracts shall, prior to accepting any funds as payment for the issuance of any such insurance policy or annuity, make all of the disclosures required by the Massachusetts Division of Insurance to the prospective purchaser of said insurance policy or annuity. In addition to the disclosures required by the Massachusetts Division of Insurance, the agent or employee of the funeral establishment shall also disclose: (a) That the amount to be refunded to the Buyer if the insurance policy is cancelled prior to the death of the Beneficiary will be determined by the cash surrender value provisions of the insurance policy; and(b) That the funeral establishment, or its agent or employee, will be paid a commission on the sale of the insurance policy.(3) No Licensed Funeral Establishment, nor any agent or employee thereof, shall require any Buyer to purchase any insurance policy or annuity as a condition for entering into any Pre-need Funeral Contract.(4) Any person who purchases a Pre-need Insurance Policy or Annuity from any agent or employee of any Licensed Funeral Establishment who is duly licensed as an insurance agent by the Massachusetts Division of Insurance, may cancel said policy or annuity without penalty any time within ten days after said policy or annuity contract is delivered to him or her by surrendering the policy or annuity contract to either the insurance company which issued said policy or annuity or the agent from whom it was purchased. Upon surrender of such policy or annuity, the purchaser shall be entitled to a full refund of all payments made in connection with said policy or annuity. No Licensed Funeral Establishment, nor any agent or employee thereof, shall impose any penalty or surcharge (monetary or otherwise) on any person exercising said right of cancellation.(5) The requirements of 239 CMR 4.10 shall apply to any and all forms of insurance which are sold or utilized for the purpose of providing funding for a Pre-need Funeral Contract, regardless of how named.Amended by Mass Register Issue S1331, eff. 1/27/2017.