Oklahoma Administrative Code › Title 365 - Insurance Department › Chapter 25 - Other Licensees › Subchapter 9 - Prepaid Funeral Benefits › Section 365:25-9-8 - Conversion from trust to insurance funded contracts

Current
				through Vol. 41, No. 20, July 1, 2024
(a)
Conversion permitted only on forms
				approved by Oklahoma Insurance Department.
Pursuant to Title 36 Okla.
				Stat. §
									6136.18
				existing prepaid funeral contracts that utilize trust funded benefits may be
				converted to insurance funded prepaid funeral benefits provided the application
				for such conversion is made on forms approved by the Oklahoma Insurance
				Department which meet the requirements of the Oklahoma Insurance Code and this
				subchapter.
(b)
Definitions.
The words and terms used in this section shall be
				defined according to this title, unless otherwise defined herein or unless the
				context clearly indicates otherwise.
(1)
"Applicant"
means a permit holder who files an application with
				the Oklahoma Insurance Department to convert its trust-funded prepaid funeral
				benefit contract(s) under existing contracts to insurance funded prepaid
				funeral benefit contract(s).
(2)
"Cash Surrender Value"
means the net amount due the policy owner
				from the insurer upon surrender of an insurance policy, which will never be
				less than the amount of the trust funds transferred from the trust to the
				insurance policy as of transfer date.
(3)
"Death Benefit"
means the
				total of all contract principal payments collected and accumulated earnings
				that are transferred at conversion, together with all future gross premiums
				paid and all accumulated interest earned annually on accumulated interest
				thereon. Interest must be compounded annually and calculated on gross premiums
				paid. The post-conversion death benefit can never be less than the
				pre-conversion death benefit.
(4)
"Insurance policy"
means either:
(A) A standard life or accident insurance
				policy; or
(B) An individual or
				group fixed annuity contract relating to an insurance conversion
				application.
(5)
"Load"
means any commission, allowance, surrender charge or other
				compensation, expense load, premium expense, administrative charge or expense,
				policy fees, or other fee or expense paid to an Oklahoma Insurance Department
				licensed agent associated with or occurring by reason of sale, issuance, lapse,
				surrender, or redemption of an insurance policy in connection with the
				conversion of any trust-funded prepaid funeral contract to insurance funded
				prepaid funeral contract.
(6)
"Post-conversion Administrator"
means the administrator, who shall
				be the funeral home requesting conversion or an administrator selected by the
				funeral home requesting conversion, of the prepaid funeral benefits contracts
				who holds and administers the prepaid funeral contracts after conversion and
				assumes responsibility for receiving the proceeds of the insurance policy upon
				maturity of a contract and processing payment to the funeral provider after
				verifying that the funeral service and merchandise under the prepaid funeral
				contract have been delivered.
(7)
"Required reserves"
means the reserve liabilities for all
				outstanding insurance contracts valued or calculated pursuant to actuarial
				standards and statutory accounting standards not inconsistent with the Oklahoma
				Insurance Code.