Chapter FD 6

Chapter FD 6

BURIAL AGREEMENTS FUNDED WITH LIFE INSURANCE

FD 6.01   Authority and purpose.

FD 6.02   Definitions.

FD 6.03   Registration requirements.

FD 6.04   Change of employment.

FD 6.05   Training requirements.

FD 6.06   Approval of educational training programs.

FD 6.07   Standards for burial agreements funded by life insurance proceeds.

FD 6.08   Contractual standards for agents and operators of funeral establishments.

FD 6.09   Requirements for terminating a burial trust.

FD 6.10   Solicitation of prospective purchasers of burial agreements funded with the proceeds of a life insurance policy.

FD 6.01 FD 6.01 Authority and purpose. The rules in this chapter are adopted by the board under the authority of ss. 15.08 (5) (b), 227.11 (2), 445.125 (3m) (b) 2. b. and (j) 1. and 2., Stats., and govern the registration and regulation of agents.

FD 6.01 History History: Cr. Register, October, 1997, No. 502, eff. 11-1-97.

FD 6.02 FD 6.02 Definitions. In this chapter:

FD 6.02(1) (1) “Agent” means an authorized representative of a funeral director or an operator of a funeral establishment who sells or solicits the sale of a burial agreement that is funded with the proceeds of a life insurance policy.

FD 6.02(4) (4) “Evidence of attendance” means an official transcript, student grade report, or a written form furnished by a program provider which specifies satisfactory completion of an educational training program.

FD 6.02(5) (5) “Program provider” means an educational institution, governmental agency, professional or trade association or foundation or a private firm or individual whose function is educational training programming.

FD 6.02 History History: Cr. Register, October, 1997, No. 502, eff. 11-1-97; correction in (3) made under s. 13.92 (4) (b) 6., Stats., Register January 2012 No. 673; EmR1823: emerg. r. (2), (3) eff. 11-27-18; CR 18-075: r. (2), (3) Register June 2019 No. 762, eff. 7-1-19.

FD 6.03 FD 6.03 Registration requirements.

FD 6.03(1) (1) A licensed funeral director or operator of a funeral establishment shall submit an application with all of the following information:

FD 6.03(1)(a) (a) The identity of any agent authorized by s. 445.125 (3m), Stats., to sell or solicit the sale of a burial agreement that is funded with the proceeds of a life insurance policy on behalf of the licensed funeral director or operator of a funeral establishment.

FD 6.03(1)(b) (b) The agent’s Wisconsin life insurance intermediary’s license number and expiration date, and the insurer or insurers whom the agent is listed to represent.

FD 6.03(1)(c) (c) Evidence satisfactory to the board that the agent has successfully completed at least 20 hours of approved educational training as provided in s. FD 6.05. An agent who is a Wisconsin licensed funeral director and a Wisconsin licensed insurance intermediary shall be exempt from having to complete the 20 hours of approved educational training as provided in s. FD 6.05.

FD 6.03(2) (2) A copy of each contract between an agent and an operator of a funeral establishment shall accompany the application.

FD 6.03(3) (3) The application shall be accompanied by the fee authorized in s. 440.05 (1), Stats.

FD 6.03(4) (4) Upon receipt of an application and payment of the fees, the board shall issue a registration card to an agent.

FD 6.03(5) (5) No agent may sell or solicit the sale of a burial agreement funded with the proceeds of a life insurance policy unless he or she is registered by the board.

FD 6.03 Note Note: Application forms are available upon request to the Funeral Directors Examining Board, 1400 East Washington Avenue, P.O. Box 8935, Madison, Wisconsin 53708.

FD 6.03 History History: Cr. Register, October, 1997, No. 502, eff. 11-1-97.

FD 6.04 FD 6.04 Change of employment. A licensed funeral director or operator of a funeral establishment shall notify the board within 30 calendar days of the termination of any contract he or she has with an agent.

FD 6.04 History History: Cr. Register, October, 1997, No. 502, eff. 11-1-97.

FD 6.05 FD 6.05 Training requirements.

FD 6.05(1) (1) Educational training shall include the following subjects:

FD 6.05(1)(a) (a) The funeral industry practice regulations of the federal trade commission, and any other applicable federal statutes and regulations related to the funeral service industry including, but not limited to, the occupational safety and health act.

FD 6.05(1)(b) (b) The funeral industry practice regulations contained in the Wisconsin statutes and administrative code including, but not limited to, burial agreements and any applicable impoverishment provisions.

FD 6.05(1)(c) (c) The ethics of funeral service marketing.

FD 6.05(1)(d) (d) Funeral service and final disposition options.

FD 6.05(1)(e) (e) Funding mechanisms for burial agreements.

FD 6.05(1)(f) (f) Financial benefits available at the time of death including, but not limited to, veteran’s benefits, social security income, pensions, and human services benefits.

FD 6.05(1)(g) (g) Grief communication skills.

FD 6.05(2) (2) Educational training credit for participation in a multiple-day program, in which each day of the program is a prerequisite for each succeeding day, shall be granted only for completion of the entire program.

FD 6.05(3) (3) Credit for attendance at an educational training program shall be given to an agent if all of the following apply:

FD 6.05(3)(a) (a) The program has been approved by the board under s. FD 6.06.

FD 6.05(3)(b) (b) The agent provides evidence of attendance satisfactory to the board.

FD 6.05(3)(c) (c) The agent takes and successfully passes a comprehensive examination administered by the program provider.

FD 6.05 History History: Cr. Register, October, 1997, No. 502, eff. 11-1-97.

FD 6.06 FD 6.06 Approval of educational training programs.

FD 6.06(1) (1) To obtain approval of an educational training program, the program provider shall submit an application to the board on a form provided by the board which shall include evidence of all of the following:

FD 6.06(1)(a) (a) Information that the program relates to the following subject areas:

FD 6.06(1)(a)1. 1. The funeral industry practice regulations of the federal trade commission, and any other applicable federal statutes and regulations related to the funeral service industry including, but not limited to, the occupational safety and health act.

FD 6.06(1)(a)2. 2. The funeral industry practice regulations contained in the Wisconsin statutes and administrative code including, but not limited to, burial agreements and applicable impoverishment provisions.

FD 6.06(1)(a)3. 3. The ethics of funeral service marketing.

FD 6.06(1)(a)4. 4. Funeral service and final disposition options.

FD 6.06(1)(a)5. 5. Funding mechanisms for burial agreements.

FD 6.06(1)(a)6. 6. Financial benefits available at the time of death including, but not limited to, veteran’s benefits, social security income, pensions, and human services benefits.

FD 6.06(1)(a)7. 7. Grief communication skills.

FD 6.06(1)(b) (b) The program is available to all agents regardless of membership or affiliation with any organization.

FD 6.06(1)(c) (c) The program provider agrees to monitor the continuous attendance of participants and to furnish to each participant with evidence of attendance.

FD 6.06(2) (2) A separate application shall be submitted for each educational training program. Approval of an educational training program expires on December 31 of each odd-numbered year.

FD 6.06(3) (3) A program provider shall apply for approval of an educational training program at least 30 days prior to its presentation.

FD 6.06(4) (4) An educational training program may include subject content other than that specified in sub. (1); however, the board shall limit its approval only to that part and time segments of the program which relate to subject areas specified in sub. (1).

FD 6.06(5) (5) In-service educational training programs sponsored by a funeral establishment or insurance company are not eligible for credit unless the programs are available to all agents and meet all other requirements in this section.

FD 6.06 Note Note: Application forms are available upon request to the Funeral Directors Examining Board, 1400 East Washington Avenue, P.O. Box 8935, Madison, Wisconsin 53708.

FD 6.06 History History: Cr. Register, October, 1997, No. 502, eff. 11-1-97.

FD 6.07 FD 6.07 Standards for burial agreements funded by life insurance proceeds. A burial agreement shall be in written form that is clear and conspicuous, and shall include all of the following:

FD 6.07(1) (1) The identity of the funeral establishment and the insurer or insurers that the agent represents.

FD 6.07(2) (2) The identity of the funeral establishment that will be used to provide the funeral services or merchandise under the agreement.

FD 6.07(3) (3) The nature and extent of any price guarantees for the funeral merchandise or funeral services, or any other guarantees that exist.

FD 6.07(4) (4) Information that a life insurance policy is involved in or connected to, or is being used to fund, the burial agreement.

FD 6.07(5) (5) The type of insurance instrument that is being used to fund the burial agreement.

FD 6.07(6) (6) The effect on the burial agreement of all of the following:

FD 6.07(6)(a) (a) Changing the life insurance policy, including, but not limited to, changing the assignment of the policy proceeds, changing the beneficiary designation, or changing the use of the proceeds.

FD 6.07(6)(b) (b) Any penalties incurred by the policyholder as a result of failing to make premium payments.

FD 6.07(6)(c) (c) Any penalties incurred or money received as a result of cancellation or surrender of the life insurance policy.

FD 6.07(7) (7) A statement of funeral goods and services selected under the burial agreement and the price of each item or service provided under the burial agreement, including a statement as to whether the purchase price of the funeral merchandise and services are guaranteed at the time the burial agreement is arranged or whether the price is to be determined at the time of need. If the price of funeral merchandise or services is to be determined at the time of need, those prices may not exceed the prices as set forth in the funeral establishment’s general price list required under the funeral industry practices regulations of the federal trade commission.

FD 6.07(8) (8) All information concerning what occurs, and whether any entitlements arise, if there is a difference between the proceeds of the life insurance policy and the amount of money actually needed to fund the burial agreement.

FD 6.07(9) (9) Any restrictions, including geographic restrictions, or penalties relating to delivery or performance under the burial agreement, including any restrictions or penalties relating to the inability of the operator of the funeral establishment to perform.

FD 6.07(10) (10) A statement as to whether the sales commission or other form of compensation is being paid to the agent who sells or solicits the sale of a burial agreement and the life insurance used to fund the burial agreement and, if so, the identity of any other persons to whom the commission or other compensation is paid.

FD 6.07(11) (11) The following statement in not less than 12-point boldface type: “Burial agreements are regulated by the Wisconsin Funeral Directors Examining Board. Should you have a complaint, please contact the Board at 4822 Madison Yards Way, P.O. Box 8935, Madison, Wisconsin 53708 or by telephone at [phone].”

FD 6.07 History History: Cr. Register, October, 1997, No. 502, eff. 11-1-97; CR 19-161: am. (11) Register September 2020 No. 777, eff. 10-1-20.

FD 6.08 FD 6.08 Contractual standards for agents and operators of funeral establishments. A copy of each contract between an agent and an operator of a funeral establishment shall be sent to the board along with the agent’s application for registration as required in s. FD 6.03. A contract between an agent and an operator of a funeral establishment shall include all of the following:

FD 6.08(1) (1) A statement that the agent is currently licensed as a life insurance intermediary in Wisconsin and is currently listed with an insurer or insurers who is authorized to sell life insurance used to fund a burial agreement in Wisconsin.

FD 6.08(2) (2) A statement that the agent has received the required training pursuant to s. 445.125 (3m) (b) 2. a., Stats., and will obtain any additional training as required by the board.

FD 6.08(3) (3) A statement that the agent shall immediately notify the operator of the funeral establishment at any time while the contract between the agent and operator of the funeral establishment is in effect if any of the following occur:

FD 6.08(3)(a) (a) The agent’s life insurance license is suspended or revoked.

FD 6.08(3)(b) (b) There are any changes to listings with insurers.