Administrative Rules of Montana › Department 6 - STATE AUDITOR › Chapter 6.6 - INSURANCE DEPARTMENT › Subchapter 6.6.10 - Funeral Insurance › Rule 6.6.1018 - REQUIRED DISCLOSURES

Current through Register Vol. 13, July 5, 2024
(1) In addition to
				any disclosures required for life insurance by statute or rule, the funeral
				insurance issuer shall develop clear and conspicuous written disclosures
				regarding the following information:
(a) the
				information contained in
				33-20-1501(3),
				MCA;
(b) whether the cumulative
				premium paid may exceed the face amount of the funeral insurance policy or
				certificate and, if so, the length of time until the cumulative premium paid
				exceeds the face amount of the policy or certificate;
(c) the nature of the relationship among the
				soliciting producer, the provider of the funeral goods and services, and any
				other person identified in a preneed funeral arrangement who will or may profit
				from the transaction;
(d) whether a
				sales commission, or other form of compensation, is being paid in connection
				with the sale of the funeral insurance and the identity of the persons to whom
				it will be paid;
(e) that the
				funeral insurance issuer, insurance producer, or specialized funeral insurance
				producer may not require that the applicant, or insured, designate a specific
				beneficiary, including, but not limited to a funeral director, mortician,
				mortuary, or undertaker;
(f) the
				relationship of the funeral insurance to the funding of the preneed funeral
				arrangement and the nature and existence of any guarantees in relation to the
				preneed funeral arrangement;
(g) an
				itemized list of the funeral goods and services which are applied or contracted
				for in the preneed funeral arrangement and all relevant information concerning
				the price of the same and whether the price is guaranteed or to be determined
				at the time of need;
(h) the impact
				on the preneed funeral arrangement of:
(i)
				changes in the funeral insurance policy, including, but not limited to, changes
				in the assignment, beneficiary designation, or use of the proceeds;
(ii) penalties to be incurred by the
				policyholder as a result of failure to make premium payments; and
(iii) penalties to be incurred or monies to
				be received as a result of cancellation or surrender of the funeral
				insurance.
(i) an
				explanation of any entitlements or obligations which arise if there is a
				difference between the funeral insurance proceeds and the amount actually
				needed to fund the preneed funeral arrangement;
(j) any penalties or restrictions, regarding
				either geographic restrictions, or the inability of the provider of the funeral
				goods and services identified in the preneed funeral arrangement to perform, on
				the delivery of funeral goods and services, or the guaranteed elements in the
				preneed funeral arrangement;
(k) if
				known, whether the provider of funeral goods and services making or entering a
				preneed funeral arrangement will accept assignments of funeral insurance and
				preneed funeral arrangements sold by any other properly licensed
				person;
(l) that after the death of
				an individual who at any time received Medicaid benefits, a funeral director,
				mortician, mortuary, undertaker, or other person, including but not limited to
				the decedent's spouse, heir, devisee, or personal representative, who is the
				beneficiary of funeral insurance in excess of $5,000 in value designated to pay
				for the disposition of the Medicaid recipient's remains and for related
				expenses shall, after paying for the disposition and related expenses, pay all
				remaining funds to the Department of Public Health and Human Services within 30
				days following the receipt of the funeral insurance death benefit. The funds
				must be paid to the Department of Public Health and Human Services regardless
				of any provision in a written contract, insurance policy, or other agreement
				entered into on or after January 1, 2008, directing a different disposition of
				the funds. Funds paid to the department under these rules are not considered to
				be property of the deceased Medicaid recipient's estate, and the provisions of
				53-6-167, MCA, do not apply to
				recovery of the funds by the department;
(m) that the funeral goods and services may
				also be purchased prior to death by making payment directly to a provider of
				funeral goods and services, licensed under Title 37, chapter 19, MCA, who would
				hold the funds in trust for the benefit of the purchaser under Title 37,
				chapter 19, MCA;
(n) that a
				discount from the price of funeral goods and services will not be offered, or
				provided, as an inducement to purchase or assign funeral insurance;
				and
(o) that cancellation of a
				preneed funeral arrangement will not cancel, or otherwise invalidate the
				funeral insurance policy.