Section Ins 23.30 - Requirements for funeral policies(1) No insurer may sell or issue a policy as a funeral policy unless all of the following occur: (a) The policy is an individual whole life or group whole life or an annuity policy.(b) The funeral policy if issued on a multi-premium basis provides an unintentional lapse provision which requires written notification to the insured and to one person designated by the insured to receive notification if no premium is received by the insurer during a grace period of no less than 30 days.(c) The funeral policy provides that death benefits which exceed the actual final costs of the burial expenses shall be paid to the insured's beneficiary or if no beneficiary is named, the insured's estate.(d) The funeral policy provides the unrestricted right to return the policy or certificate within 30 days of the date it is received by the policyholder. If the policyholder returns the policy or certificate, the insurance contract is void and all payments made under it shall be refunded directly to the policyholder by the insurer.(e) Notification of the right to return is conspicuously printed on the front page of the funeral policy or conspicuously attached to the funeral policy.(f) The insurance intermediary obtains a delivery receipt from the insured when the policy is given to the insured.(g) The funeral policy provides that cancellation of the prearranged funeral plan does not automatically cancel the policy.(2) No insurer may submit policy forms for funeral policies pursuant to s. 631.20, Stats. unless the forms comply with ch. Ins 2 and all of the following are included in the filing: (a) An application form with provisions for signature by the applicant and insurance intermediary.(b) A consideration plan and, within 30 days of any revisions to the consideration plan, the revised consideration plan including all of the following: 1. A description of consideration which may be paid to any person relating to the sale or renewal of a funeral policy.2. A listing describing all consideration the insurer provides to the funeral director or operator of the funeral establishment for endorsing the insurer's product or direct or indirect assistance in marketing of the product.(c) A specimen policy delivery receipt.Wis. Admin. Code Office of the Commissioner of Insurance Ins 23.30
Cr. Register, July, 1997, No. 499, eff. 10-1-97; r. (1) (b) and (2) (d), renum. (1) (c) to (h) to be (1) (b) to (g), am. (2) (b), Register, January, 2001, No. 541, eff. 2-1-01.