Section Ins 301.05 - Preneed Funeral Contracts or Prearrangements Funded in Whole or in Part by Life Insurance The following information shall be adequately disclosed at the time an application is made, prior to accepting the applicant's initial premium or deposit, for a preneed funeral contract or prearrangement that is funded or to be funded by a life insurance policy:
(a) The fact that a life insurance policy is involved or being used to fund a prearrangement;(b) The nature of the relationship among the soliciting producer or producers, the provider of the funeral or cemetery merchandise or services, the administrator, and any other person;(c) The relationship of the life insurance policy to the funding of the prearrangement, and the nature and existence of any guarantees relating to the prearrangement;(d) The impact on the prearrangement: (1) Of any changes in the life insurance policy, including but not limited to changes in the assignment, beneficiary designation, or use of the proceeds;(2) Of any penalties to be incurred by the policyholder as a result of failure to make premium payments; and(3) Of any penalties to be incurred or monies to be received as a result of cancellation or surrender of the life insurance policy.(e) A list of the merchandise and services which are applied or contracted for in the prearrangement and all relevant information concerning the price of the funeral services, including an indication that the purchase price is either guaranteed at the time of purchase or to be determined at the time of need;(f) All relevant information concerning what occurs and whether any entitlements or obligations arise if there is a difference between the proceeds of the life insurance policy and the amount actually needed to fund the prearrangement;(g) Any penalties or restrictions, including but not limited to geographic restrictions or the inability of the provider to perform, on the delivery of merchandise, services, or the prearrangement guarantee;(h) If so, the fact that a sales commission or other form of compensation is being paid and the identity of the individuals or entities to whom it is paid; and(i) Additional disclosure requirements: (1) An insurer issuing a small face amount policy, where over the term of the policy the cumulative policy premiums paid may exceed the face amount of the policy, shall clearly and prominently disclose, on or before policy delivery, the length of time until the cumulative policy premiums paid may exceed the face amount of the policy;(2) The insurer shall clearly and prominently disclose, on or before policy delivery, available premium payment plans;(3) Cumulative premiums shall include premiums paid for riders except, the face amount shall not include the benefit attributable to the riders;(4) Each policy subject to the disclosure requirements of this section shall contain a provision that allows the policyholder to cancel the policy within 10 days following the delivery of the policy with full premium refund to the consumer and with no charge or penalty. The free-look period shall be clearly and prominently disclosed to the consumer; and(5) If the policy uses graded benefits, they shall be disclosed to the applicant prior to entry into the contract. The policy shall also provide that graded death benefits life insurance policies shall pay the policy face value after 2 years of premium payments.N.H. Admin. Code § Ins 301.05
#1900, eff 1-1-82; amd by #2141, eff 1-1-83; ss by #4287, eff 7-1-87; ss by #5657, eff 7-1-93; ss by #7015, INTERIM, eff 7-1-99, EXPIRED: 10-29-99
New. #7450, eff 2-16-01, EXPIRED: 2-16-09
New. #9651, eff 2-5-10
Amended by Volume XXXVII Number 50, Filed December 14, 2017, Proposed by #12423, Effective 2/5/2018, Expires 2/5/2028Amended by Number 32, Filed August 10, 2023, Proposed by #13691, Effective 7/21/2023, Expires 7/21/2033.