23 CAR Part 140 — Prepaid Funeral Benefits Contracts Transfer Fee

Chapter I

Subchapter B

Subpart 1

23 CAR § 140-101 Purpose {#sec-23-car-140-101 omnilex-key=us-ar-regs-official--title-23-part-140--23 CAR § 140-101}

23 CAR § 140-101. Purpose.

The purpose of this part is to establish a fee for a transfer or cancellation of prepaid funeral benefits contracts when the transfer or cancellation is initiated by the policyholder.

23 CAR § 140-102 Definitions {#sec-23-car-140-102 omnilex-key=us-ar-regs-official--title-23-part-140--23 CAR § 140-102}

23 CAR § 140-102. Definitions.

As used in this part:

(1) "Funding life insurance company" means the life insurance company that is responsible for funding the prepaid funeral benefits contract;

(2) "Policyholder" means the contract purchaser;

(3) "Seller" means the organization who sold the prepaid funeral benefits contract to the consumer; and

(4) "Substitute provider" means the funeral home that is assuming the prepaid funeral benefits contract in the case of a transfer.

23 CAR § 140-103 Fee {#sec-23-car-140-103 omnilex-key=us-ar-regs-official--title-23-part-140--23 CAR § 140-103}

23 CAR § 140-103. Fee.

Either the seller or the funding life insurance company, but not both, is permitted to collect a fee not to exceed thirty-five dollars ($35.00) for the policyholder-initiated transfer of the contract to a substitute provider or, alternatively, for the cancellation of the contract.

23 CAR § 140-104 Requirements {#sec-23-car-140-104 omnilex-key=us-ar-regs-official--title-23-part-140--23 CAR § 140-104}

23 CAR § 140-104. Requirements.

(a) The purpose of the fee is to defray the administrative costs of the seller in effecting the policyholder-initiated transfer or cancellation.

(b) The fee may be paid by either the policyholder or the substitute provider.

(c) Any seller or funding life insurance company who intends to collect the fee shall give written notice in the contract that the policyholder may be responsible to pay the fee in the event the policyholder chooses to:

(1) Transfer the contract to a substitute provider; or

(2) Cancel the contract.

(d) Sellers who sell cash-funded contracts are allowed to collect the fee upon any policyholder initiated transfer or cancellation.