Okla. Admin. Code § 365:25-9-5

Current through Vol. 41, No. 19, June 17, 2024

Section 365:25-9-5 - Prohibited acts

(a)Assignment not to exceed the maximum amount allowed by statute. Any officer, director, agent or employee of any organization subject to the terms of 36 O.S. § 6121(1981), as amended, or any licensed funeral director, personally or through the act of a representative or employee, may receive an assignment, not to exceed the statutory limits, of the benefits from any life or accident insurance policy, or from any other lawful contract of insurance, for the direct or indirect payment of funeral costs, subject to the following conditions:

(1) The assignor shall retain the right to revoke the assignment at any time prior to the date the assignee furnishes or causes to be furnished the funeral merchandise and/or services contracted for, unless the assignment has been made irrevocable.

(2) The assignor shall retain the right to designate and change the beneficiary of any lawful contract of insurance, unless the assignment has been made irrevocable.

(3) The assignee shall not exercise its right to surrender the contract of insurance prior to such time as it furnishes the funeral merchandise and/or services contracted for.

(4) Any such assignment not made irrevocable shall provide that in the event the assignor should desire to cancel the assignment prior to performance thereunder by the assignee, such cancellation may be accomplished by the assignor giving prior notice in writing to the assignee. Upon receipt of such cancellation notice by the assignee, assignee shall promptly execute an assignment release relinquishing its interest in the contract of insurance.

(b)Prohibited acts. In connection with any such assignment contemplated by (a) of this section, no officer, director, agent or employee of any organization subject to the terms of 36 O.S. § 6121 et seq. (1981), as amended, or any licensed funeral director, personally or through the act of a representative or employee, may:

(1) Take possession from any person of a policy of life or accident insurance, or any other lawful contact of insurance, or any evidence of insurability under any such policy or contract while, directly or indirectly, furnishing funeral merchandise or services.

(2) make a claim on said policy or contract, or forward any claim on any such policy or contract to the insurer involved, unless the merchandise or services have been furnished prior to the making of any such claim.

Okla. Admin. Code § 365:25-9-5

Amended at 10 Ok Reg 1507, eff 5-1-93