New Jersey Administrative Code
Title 13 - LAW AND PUBLIC SAFETY
Chapter 36 - STATE BOARD OF MORTUARY SCIENCE
Subchapter 11 - PREPAID FUNERAL AGREEMENTS AND ARRANGEMENTS
Section 13:36-11.4 - Additional requirements of prepaid funeral agreements funded by funeral insurance policies; signing of insurance documents; providers not beneficiaries

Universal Citation: NJ Admin Code 13:36-11.4

Current through Register Vol. 56, No. 6, March 18, 2024

(a) A provider who funds a prepaid funeral agreement by selling a newly issued funeral insurance policy shall conspicuously and in plain language disclose to the purchaser:

1. In boldface, that the provider will receive a commission or other remuneration based on the transaction;

2. That the provider is a duly licensed insurance producer in the State of New Jersey and is an agent of the insurance company issuing the policy;

3. The license number of the provider currently on file with the New Jersey Department of Banking and Insurance;

4. That cancellation of the prepaid funeral agreement shall not result in a refund of premiums paid;

5. That cancellation of the prepaid funeral agreement shall not cancel or otherwise invalidate the newly issued funeral insurance policy, although cancellation may not result in a refund of all premiums paid; and

6. That cancellation or lapse of the newly issued insurance policy, or withdrawals from, or loans against the proceeds or the cash value of the policy, may render the available funds inadequate to pay for the arrangements as originally intended and shall void any price guarantees.

(b) The provider who funds a prepaid funeral agreement by selling a newly issued funeral insurance policy shall sign all documentation pertaining to the funeral insurance policy application and goods and services in the presence of the purchaser.

(c) No provider, while acting in the capacity of a provider or licensee of the Board, shall be named as a beneficiary of a funeral insurance policy, except that nothing in this section shall be construed to prohibit the assignment of the proceeds of the policy to a provider as final payment for a funeral bill, or any other mechanism that provides payment to a provider for the goods or services rendered; in the case of such assignment or mechanism, any excess proceeds shall be paid to the named beneficiary.

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