632.415 Funeral policies.

400 words·~2 min read·/wi/chapter-632/632-415

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(1)In this section, “multipremium funeral policy” means a life insurance policy sold under sub.

(2)for which premiums to fund the policy are paid over time.

(2)A life insurance policy may provide for the assignment of the proceeds of the policy to a funeral director or operator of a funeral establishment if the insurance intermediary who sells or solicits the sale of the policy is not an agent of the funeral director or operator of the funeral establishment or if the assignment of proceeds is contingent on the provision of funeral merchandise or funeral services as provided for in a burial agreement that satisfies the requirements of s. 445.125

(3m)and rules promulgated by the funeral directors examining board under s. 445.125

(j)1. b.

(3)A life insurance policy sold under sub.

(2)shall permit the policyholder to designate a different beneficiary, upon written notice to the insurer, and a different funeral director or operator of a funeral establishment that is to receive the assignment of proceeds, after written notice to the current funeral director or operator of the funeral establishment.

(a)An insurer may issue a multipremium funeral policy only if, at the time that the policy is issued, the face amount of the policy is not less than the value of funeral merchandise and services to be provided under a burial agreement under s. 445.125

(3m).

(b)The death benefit under a multipremium funeral policy may not be less than the face amount of the policy unless all of the following apply:

1. The policy contains a detailed explanation of the lower death benefit, as well as full disclosure of the lower death benefit on the first page of the policy.

2. The applicant does not apply for, or qualify for, any full face amount multipremium funeral policy that the insurer offers.

3. The death benefit is not less than at least one of the following:

a. Twenty-five percent of the face amount of the policy during the first year that the policy is in effect, 50 percent of the face amount of the policy during the 2nd year that the policy is in effect and the full face amount of the policy after the end of the 2nd year that the policy is in effect, but in no event less than the total of the premiums actually paid.