Wisconsin Statutes & Annotations
Chapter 632 - Insurance contracts in specific lines.
632.415 - Funeral policies.

632.415 Funeral policies.
(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 (3m) (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.
(4)
(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.
b. During the first 2 years that the policy is in effect, an amount equal to the actual premiums paid plus simple interest at the rate of 3 percent per year, and, after the end of the 2nd year that the policy is in effect, the full face amount of the policy.
(c) The period over which premiums may be payable under a multipremium funeral policy may not exceed the following applicable period:
1. Twenty years, if the insured is less 60 years of age when the policy is issued.
2. Ten years, if the insured is at least 60 years of age but less than 80 years of age when the policy is issued.
3. Five years, if the insured is at least 80 years of age when the policy is issued.
(d) At the time that an applicant applies for coverage under a multipremium funeral policy, the insurance intermediary or other person selling or soliciting the sale of the policy shall disclose the maximum number of premium payments to be made over the life of the policy, the frequency of the premium payments and the amount of each premium payment.
(4m) Proof of death for an insurance policy sold under sub. (2) may be established with an affidavit in the form prescribed under s. 69.02 (1) (c) if the insurer consents to receipt of the affidavit.
(5) Subject to subs. (3) and (4), the commissioner shall by rule establish minimum standards for claims payments, marketing practices and reporting practices for life insurance policies sold under sub. (2).
History: 1999 a. 191 ss. 2 to 5; 2003 a. 167.

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