Administrative Rules of Montana › Department 6 - STATE AUDITOR › Chapter 6.6 - INSURANCE DEPARTMENT › Subchapter 6.6.10 - Funeral Insurance › Rule 6.6.1004 - DEFINITIONS

Current through Register Vol. 13, July 5, 2024
For the purposes of ARM
				  6.6.1001,
				  6.6.1002,
				  6.6.1003,
				  6.6.1004,
				  6.6.1006,
				  6.6.1008,
				  6.6.1010,
				  6.6.1012,
				  6.6.1014,
				  6.6.1016,
				  6.6.1018, and
				  6.6.1020, the following definitions
				  apply:
(1) "Excess beneficiary" means
				the person designated in the funeral insurance policy or certificate to receive
				any amount of the funeral insurance proceeds that exceed the cost of the
				funeral goods and services provided to the insured. Payment to the excess
				beneficiary may be subject to recovery by Medicaid pursuant to
				33-20-1501, MCA.
(2) "Funeral goods and services" means
				personal property sold, or provided, and services provided in connection with a
				funeral or at the final disposition of human remains.
(3) "Funeral insurance" is a type of life
				insurance as defined in
				33-20-1501, MCA. Funeral insurance
				may be purchased by making a one time payment of premium or by paying premium
				in installments. Funeral insurance may be issued on a group or individual
				basis. Annuity contracts and viatical settlement agreements are not funeral
				insurance and may not be marketed or designated as intended for use as funeral
				insurance.
(4) "Funeral insurance
				policy forms" means every policy, certificate, enrollment form, application
				form, printed rider, endorsement form, disclosure form, policy summary, or
				other document which purports to grant funeral insurance or effect a
				transaction of funeral insurance.
(5) "Funeral insurance proceeds" means the
				amount payable as stated in the funeral insurance policy forms upon the death
				of the insured. Funeral insurance proceeds are also known as the death
				benefit.
(6) "Insurable interest"
				has the same meaning as in
				33-15-201, MCA.
(7) "One-time payment of premium" means a
				single premium payment is made and the funeral insurance is fully paid up with
				no further premium payments required.
(8) "Person" means an individual or a
				business entity including a corporation, association, partnership, limited
				liability company, limited liability partnership, or other legal
				entity.
(9) "Preneed funeral
				arrangement" means an arrangement made with a person licensed under Title 37,
				chapter 19, parts 3 and 4, MCA, by the intended recipient of the funeral goods
				and services on that individual's own behalf, or by an authorized individual on
				behalf of the intended recipient, prior to the death of the individual. Preneed
				funeral arrangements are governed by Title 37, chapter 19, MCA, and the rules
				promulgated to implement that chapter.
(10) "Primary beneficiary" means the person
				designated in the funeral insurance to receive the funeral insurance proceeds
				intended by the applicant or insured, if not one in the same, to fund a preneed
				funeral arrangement or to pay for funeral goods and services for the insured.
				The primary beneficiary may, but need not, be a person licensed under Title 37,
				chapter 19, parts 3 and 4, MCA. Payment to the primary beneficiary may be
				subject to recovery by Medicaid pursuant to
				33-20-1501, MCA.
(11) "Specialized funeral insurance producer"
				means a person who holds a current specialized funeral insurance producer
				license.
(12) "Specialized funeral
				insurance producer license" means a life insurance producer license that is
				issued only to persons also licensed under Title 37, chapter 19, parts 3 and 4,
				MCA.
33-1-313,
					 33-20-1503, MCA; IMP,
					 33-17-201,
					 33-17-211,
					 33-17-212,
					 33-17-213,
					 33-17-214,
					 33-17-219,
					 33-17-220,
					 33-17-231,
					 33-17-236,
					 33-17-401,
					 33-17-405,
					 33-17-406,
					 33-17-407,
					 33-17-409,
					 33-17-411,
					 33-17-1001,
					 33-17-1002,
					 33-17-1003,
					 33-17-1004,
					 33-17-1005,
					 33-17-1101,
					 33-17-1102,
					 33-17-1103,
					 33-17-1203,
					 33-17-1205,
					 33-20-1501,
					 33-20-1502,
					 MCA;