c. Minimum standards that a contract between an agent and an operator of a funeral establishment must satisfy to authorize the agent to sell or solicit the sale of a burial agreement funded with the proceeds of a life insurance policy on behalf of the operator of the funeral establishment.
d. The form and content of written notice that a licensed funeral director, operator of a funeral establishment or agent of a licensed funeral director or operator of a funeral establishment is required to provide to the examining board under par. (h).
2. The examining board may promulgate rules establishing standards for marketing practices for a burial agreement that is funded with the proceeds of a life insurance policy, including standards for telephone solicitation of prospective purchasers. The rules promulgated under this subdivision may prohibit a method of telephone solicitation if the examining board determines that the prohibition is necessary to protect the public.
3. The examining board shall prepare and distribute a booklet that describes the differences between funding a burial agreement with the proceeds of a life insurance policy under this subsection and entering into a burial agreement funded by a trust under sub. (1). The examining board may charge a reasonable fee for the cost of preparation and distribution of the booklet.
295,17
Section 17
. 445.125 (4) of the statutes is renumbered 445.125 (4) (intro.) and amended to read:
445.125 (4) (title) Applicability. (intro.) This section shall not apply to any of the following:
(a) A contract to provide funeral and burial service for any person if such contract is incidental to maintaining such person in a home, hospital or institution.
295,18
Section
18. 445.13 (1) of the statutes is amended to read:
445.13 (1) Subject to the rules promulgated under s. 440.03 (1), the examining board may make investigations, subpoena witnesses, conduct hearings, limit, suspend or revoke licenses a license of a funeral directors, certificates director, a certificate of registration of apprentices and permits an apprentice or a permit of operators an operator of a funeral
establishments establishment and reprimand a funeral directors, apprentices and director, apprentice or operator of a funeral establishments establishment for any violation of 15 USC 45 and 57, of this chapter or of any rule of the department of health and family services or the examining board or, for unprofessional conduct, including misrepresentation or fraud in obtaining the license, permit or certificate of registration, or for any violation of this chapter or any rule of the examining board by an agent authorized by the funeral director or operator of the funeral establishment under s. 445.125 (3m) (b) 2. a.
295,19
Section 19
. 445.13 (1e) of the statutes is created to read:
445.13 (1e) In addition to or in lieu of a reprimand or limitation, suspension or revocation of a license or permit under sub. (1), the examining board may assess against any person who violates s. 445.12 (3g) or (3r) or 445.125 (3m) or a rule promulgated under s. 445.125 (3m) (j) a forfeiture of no more than $1,000 for each violation.
295,20
Section 20
. 445.13 (2) of the statutes is amended to read:
445.13 (2) No reprimand or order limiting, suspending or revoking a license, certificate of registration or permit, or no assessment of forfeiture, shall be made until after a public hearing conducted by the examining board.
295,21
Section 21
. 445.15 (1) of the statutes is amended to read:
445.15 (1) Any Except as provided in sub. (1m), any person violating any provision of this chapter or any rule of the department of health and family services and the examining board relating to its subject matter, shall be fined not less than $50 nor more than $200, or imprisoned not less than 30 days nor more than 3 months.
295,22
Section 22
. 445.15 (1m) of the statutes is created to read:
445.15 (1m) A funeral director or operator of a funeral establishment who violates s. 445.12 (3r) shall be fined not more than $5,000 for each violation. Each day that an insurance intermediary authorized by a funeral director or operator of a funeral establishment fails to meet the training requirements established by the examining board by rule under s. 445.125 (3m) (j) 1. a. constitutes a separate violation of s. 445.12 (3r) (b).
295,23
Section 23
. 632.41 (2) of the statutes is renumbered 632.41 (2) (a) and amended to read:
632.41 (2) (a) No
Except as provided in par. (b), no contract in which the insurer agrees to pay for any of the incidents of burial or other disposition of the body of a deceased may provide that the benefits are payable to a funeral director or any other person doing business related to burials.
295,24
Section 24
. 632.41 (2) (b) of the statutes is created to read:
632.41 (2) (b) 1. 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.
2. Subject to subd. 3., the commissioner shall by rule establish minimum standards for benefits, claims payments, marketing practices, compensation arrangements and reporting practices for life insurance policies sold under subd. 1.
3. A life insurance policy sold under subd. 1. shall permit the policyholder to designate a different beneficiary, after written notice to the current beneficiary, 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.
295,25
Section 25
. 701.12 (1) of the statutes is amended to read:
701.12 (1) By written consent of the settlor and all beneficiaries of a trust or any part thereof, such trust or part thereof may be revoked, modified or terminated, except as provided under s. 445.125 (1) (b) (a) 2. to (d) 4.
295,26
Section 26
.
Nonstatutory provisions.
(1) The office of the commissioner of insurance shall submit in proposed form the rules required under section 632.41 (2) (b) 2. of the statutes, as created by this act, to the legislative council staff under section 227.15 (1) of the statutes no later than the first day of the 7th month beginning after the effective date of this subsection.
(2) The funeral directors examining board shall submit in proposed form the rules required under section 445.125 (3m) (b) 2. b. and (j) 1. of the statutes, as created by this act, to the legislative council staff under section 227.15 (1) of the statutes no later than the first day of the 7th month beginning after the effective date of this subsection.
(3) The funeral directors examining board shall prepare for distribution the booklet required under section 445.125 (3m) (j) 3. of the statutes, as created by this act, no later than the first day of the 7th month beginning after the effective date of this subsection.
295,27
Section 27
.
Effective dates. This act takes effect on the first day of the 13th month beginning after publication, except as follows:
(1) The treatment of Section 26 of this act takes effect on the day after publication.
