Md. Code Regs. 10.29.06.03

Current through Register Vol. 51, No. 22, November 1, 2024

Section 10.29.06.03 - Execution of Preneed Contract

A. Only a licensed mortician, licensed funeral director, or holder of a surviving spouse license may make pre-arrangements and execute preneed contracts with buyers.

B. The seller shall present to the buyer a preneed contract which contains all of the information set forth in Health Occupations Article, §7-404, Annotated Code of Maryland.

C. The seller and buyer of a preneed contract shall execute the contract in duplicate, with a copy of the original contract given to the buyer at the time that the contract is signed.

D. The seller shall state in the preneed contract:

(1) The time required for fulfilling the terms and conditions of the contract;

(2) The cancellation terms; and

(3) The conditions of refunds.

E. A preneed contract may be funded by a life insurance policy or an annuity contract.

F. A seller who funds preneed contracts using a life insurance policy or an annuity shall have an insurance license.

G. A seller who funds preneed contracts using a life insurance policy or annuity shall:

(1) Give the buyer a copy of the completed contract form signed and executed by the licensee, buyer, and insurance agent at the conclusion of preneed arrangements;

(2) Ensure that the insurance company listed on the application for insurance is the recipient of the payment when the buyer is executing payment;

(3) Send a copy of the certificate of insurance to the buyer immediately upon receipt of the approved insurance policy; and

(4) Present a copy of a filed death certificate policy claim form and any other information required by the insurance company for payment of services provided under the preneed insurance contract.

H. Funds may not be transferred from a money-trust to an insurance-funded vehicle without the approval and signature on the insurance application of the buyer or legal representative of the buyer.

Md. Code Regs. 10.29.06.03

Regulation .03 amended effective March 18, 2002 (29:5 Md. R. 504)
Regulation .03A amended effective August 27, 2007 (34:17 Md. R. 1508)
Regulation .03H, I adopted effective August 27, 2007 (34:17 Md. R. 1508); amended effective 49:7 Md. R. 466, eff. 4/4/2022