INSURANCE DEPARTMENT

6.6.1001 PURPOSE The purpose of these rules is to establish specific rules to regulate funeral insurance, including but not limited to the licensing of producers, form review, financial reporting, and consumer protection. Authorizing statute(s): 33-1-313, 33-20-1503, MCA Implemen…

6.6.1002 SCOPE These rules shall apply to: all life insurance policy forms delivered or issued for delivery, marketed, or designated as intended for use in this state as funeral insurance; any solicitation, negotiation, or sale of funeral insurance occurring within this state; re…

6.6.1003 APPLICABILITY OF OTHER RULES Funeral insurance is defined in 33-20-1501, MCA, as a type of life insurance, and all rules pertaining to life insurance shall apply to funeral insurance unless funeral insurance is specifically exempted. In the event of any inconsistency bet…

6.6.1004 DEFINITIONS For the purposes of ARM 6.6.1001, 6.6.1002, 6.6.1003, 6.6.1004, 6.6.1006, 6.6.1008, 6.6.1010, 6.6.1012, 6.6.1014, 6.6.1016, 6.6.1018, and 6.6.1020, the following definitions apply: "Excess beneficiary" means the person designated in the funeral insurance poli…

6.6.1006 LICENSING OF SPECIALIZED FUNERAL INSURANCE PRODUCERS No person shall solicit, negotiate, or sell funeral insurance unless that person is properly licensed and appointed as a life insurance producer or as a specialized funeral insurance producer. Any person applying for a…

6.6.1008 REPORTING BY ISSUER The commissioner may require a funeral insurance issuer to file a supplement to the annual statement. The supplement will be in a form approved by the commissioner. Authorizing statute(s): 33-1-313, 33-20-1503, MCA Implementing statute(s): 33-2-701, 3…

6.6.101 LICENSING--GENERAL CHARACTER AND CONDUCT REQUIREMENTS (REPEALED) Authorizing statute(s): 33-1-313, MCA Implementing statute(s): 33-1 313, MCA History: NEW, Eff. 4/4/75; REP, 2017 MAR p. 1890, Eff. 10/14/17.

6.6.1010 FUNERAL INSURANCE POLICY FORMS In addition to the filing and approval requirements in statute and rule for life insurance policy forms, funeral insurance issuers must file the following with the commissioner for review and prior approval: solicitation materials; and disc…

6.6.1012 BENEFICIARY DESIGNATION Funeral insurance policy forms must clearly and conspicuously: allow the insured, or applicant, if the applicant has an insurable interest in the life of the insured, to designate a primary beneficiary and an excess beneficiary; state that funeral…

6.6.1014 RIGHT TO RETURN POLICY Each funeral insurance policy and certificate delivered or issued for delivery in this state must clearly and conspicuously provide to the insured the right to return the policy or certificate to the funeral insurance issuer within 30 days of deliv…

6.6.1016 UNINTENTIONAL LAPSE Each issuer offering funeral insurance with premium payable in installments shall, as a protection against unintentional lapse, comply with the following: No funeral insurance policy or certificate shall be issued until the issuer has received from th…

6.6.1018 REQUIRED DISCLOSURES In addition to any disclosures required for life insurance by statute or rule, the funeral insurance issuer shall develop clear and conspicuous written disclosures regarding the following information: the information contained in 33-20-1501(3), MCA; …

6.6.102 FAMILIARITY WITH CODE AND RULES (REPEALED) Authorizing statute(s): 33-1-313, MCA Implementing statute(s): 33-1-313, MCA History: NEW, Eff. 4/4/75; REP, 2017 MAR p. 1890, Eff. 10/14/17.

6.6.1020 PROHIBITIONS The sale of funeral insurance may not be conditioned on: the applicant or insured agreeing to assign the funeral insurance proceeds to a funeral director, mortician, mortuary, or undertaker; or the applicant or insured making or entering a preneed funeral ar…

6.6.103 EXAMINATIONS--WAITING PERIODS BEFORE RE-EXAMINATION IS HEREBY REPEALED. Authorizing statute(s): Sec. 33-1-313 MCA Implementing statute(s): Sec. 33-1-313 MCA History: NEW, Eff. 4/4/75, REP, 1991 MAR p. 2217, Eff. 11/15/91.

6.6.104 APPLICANTS FOR TEMPORARY AGENT'S LICENSE--TIME PERIOD FOR PASSING EXAMINATION (REPEALED) Authorizing statute(s): 33-1-313, MCA Implementing statute(s): 33-17-212, MCA History: NEW, Eff. 4/4/75; REP, 2017 MAR p. 1890, Eff. 10/14/17.

6.6.105 APPLICANTS FOR AGENT'S OR SOLICITOR'S LICENSE-- TIME PERIOD FOR PASSING EXAMINATION (REPEALED) Authorizing statute(s): 33-1-313, MCA Implementing statute(s): 33-1-313, MCA History: NEW, Eff. 4/4/75; REP, 2017 MAR p. 1890, Eff. 10/14/17.

6.6.1101 CREDIT LIFE INSURANCE -- ACCEPTABLE RATES Except as may otherwise be provided in this subchapter, the following rates for credit life insurance may be considered "prima facie acceptable rates" for purposes of 33-21-205, MCA. Rates which are filed by any company for the i…

6.6.1102 LIMITATION ON PRESUMPTION OF REASONABLENESS The rates provided by ARM 6.6.1101 are presumed to produce reasonable benefits in relation to premium only if: The credit life insurance contract contains no exclusion other than for suicide committed within two years of the ef…

6.6.1103 CREDIT DISABILITY INSURANCE--ACCEPTABLE RATES Except as may otherwise be provided in this sub-chapter, the rates provided in this rule for credit disability insurance may be considered as "prima facie acceptable rates" for the purposes of 33-21-205, MCA. Rates which are …

6.6.1104 LIMITATION OF PRESUMPTION OF REASONABLENESS The rates provided by ARM 6.6.1103 are presumed to produce reasonable benefits in relation to premiums only if: The coverage contains no exclusions for pre-existing conditions except for those conditions which manifested themse…

6.6.1105 ALLOWABLE EXCLUSIONS AND RESTRICTIONS Any contract to which the rates provided by ARM 6.6.1103 apply may contain provisions excluding or restricting coverage in the event of intentional and self-inflicted injury, foreign travel or residence, flight in non-scheduled aircr…

6.6.1106 FILING--INSURER'S STATEMENT Any filing made pursuant to this sub-chapter shall clearly indicate whether the insurer believes that the rates in the filing are within the acceptable rates established by this sub-chapter or are higher than those established rates. Authorizi…

6.6.1107 REQUESTS FOR HIGHER RATES--APPROVAL BY COMMISSIONER Requests for rates higher than those established in this sub-chapter for a debtor or a creditor or a class or classes of debtors or creditors will be approved on a satisfactory showing by the insurer that, because of th…

6.6.1108 REFUNDS Section 33-21-206, MCA, requires that the formula to be used in computing refunds be filed with the commissioner of insurance. Any refund formula which is at least as favorable to the insured debtor as the "sum of the digits" formula (also called the "rule of 78t…

6.6.1109 CREDITOR--REMITTANCE OF PREMIUMS TO INSURER If the creditor adds identifiable insurance charges or premiums for credit insurance to the total amount of the indebtedness and makes any direct or indirect finance, carrying, credit or service charge whatever to the debtor in…

6.6.1110 DETERMINATION OF REASONABLENESS OF BENEFITS IN RELATION TO PREMIUM CHARGED Benefits provided by credit insurance policies must be reasonable in relation to the premium charged. This requirement is satisfied if the premium rate charged develops or may be reasonably expect…

6.6.1111 COMPLIANCE -- FORMS, CONTRACTS AND RATES Forms, contracts and rates used in this state shall comply with the applicable provisions of this subchapter. Authorizing statute(s): 33-21-111, MCA Implementing statute(s): 33-21-205 and 33-21-206, MCA History: NEW, Eff. 4/4/75; …

6.6.1202 UNFAIR DISCRIMINATION ON THE BASIS OF SEX OR MARITAL STATUS (REPEALED) Authorizing statute(s): 33-1-313, MCA Implementing statute(s): 33-7-519, 33-18-206, 33-18-210, 33-30-306, MCA History: NEW, 1978 MAR p. 1615, Eff. 2/1/79; REP, 2009 MAR p. 83, Eff. 1/30/09.

6.6.1203 PROHIBITED PRACTICES (REPEALED) Authorizing statute(s): 33-1-313, MCA Implementing statute(s): 33-7-519, 33-18-206, 33-18-210, 33-30-306, MCA History: NEW, 1978 MAR p. 1615-1617, Eff. 2/1/79; REP, 2009 MAR p. 83, Eff. 1/30/09.

6.6.1301 APPLICABILITY This sub-chapter applies to all domestic stock insurers having 100 or more stockholders. This sub-chapter does not apply to an insurer if 95% or more of its stock is owned or controlled by a parent or an affiliated insurer and the remaining shares are held …

6.6.1302 DEFINITIONS As used in this sub-chapter, unless the context indicates otherwise: "Solicit" and "solicitation" include: Any request for a proxy, whether or not accompanied by or included in a form of proxy; or Any request to execute, not execute, or revoke a proxy; or The…

6.6.1303 DISCLOSURE OF EQUIVALENT INFORMATION Unless proxies, consents, or authorizations, in respect to stock of a domestic insurer subject to this sub-chapter, are solicited by or on behalf of the management of the insurer from the holders of record of the stock of the insurer,…

6.6.1304 INFORMATION TO BE FURNISHED TO STOCKHOLDERS A solicitation subject to this sub-chapter may not be made unless each person solicited is concurrently furnished or has previously been furnished with a written proxy statement containing the information specified in ARM 6.6.1…

6.6.1305 PROXY STATEMENTS--REVOCABILITY Each proxy statement shall state whether the person giving the proxy may revoke it. If the right of revocation before the proxy is exercised is limited or is subject to compliance with any formal procedure, the proxy statement shall describ…

6.6.1306 PROXY STATEMENTS--DISSENTERS' RIGHTS OF APPRAISAL Each proxy statement shall outline briefly the rights of appraisal or similar rights of dissenting stockholders with respect to any matter to be acted upon and shall indicate any statutory procedure required to be followe…

6.6.1307 PROXY STATEMENTS--INDENTITY OF SOLICITORS AND COST OF SOLICITATION If a solicitation of a proxy is If the solicitation is made otherwise than by the management of the insurer, the solicitation or proxy statement shall state the names and addresses of the persons by whom …

6.6.1308 PROXY STATEMENTS--DISCLOSURE OF INTERESTS Each proxy statement shall describe briefly any substantial interest, direct or indirect, by stockholdings or otherwise, of any director, nominee for election for director, officer and, if the solicitation is made otherwise than …

6.6.1309 PROXY STATEMENTS--STOCKS AND STOCKHOLDERS ENTITLED TO VOTE Each proxy statement shall state, as to each class of voting stock of the insurer entitled to be voted at the meeting, the number of shares outstanding and the number of votes to which each class is entitled. The…

6.6.1310 PROXY STATEMENTS--ELECTION OF DIRECTORS If action is to be taken with respect to the election of directors, the proxy statement shall furnish the following information in tabular form, to the extent practicable, with respect to each person nominated for election as a dir…

6.6.1311 PROXY STATEMENTS--SCHEDULE SIS INFORMATION The proxy statement shall furnish the information reported or required in item 1 of Schedule SIS, of the insurer's annual statement filed pursuant to Section 33-2-701 , MCA, under the heading "Information Regarding Management an…

6.6.1312 PROXY STATEMENTS--BONUS, PROFIT-SHARING, AND OTHER REMUNERATION PLANS If action is to be taken with respect to any bonus, profit-sharing, or other remuneration plan of the insurer, the proxy statement shall furnish the following information: A brief description of the ma…

6.6.1313 PROXY STATEMENTS--PENSION AND RETIREMENT PLANS If action is to be taken with respect to any pension or retirement plan of the insurer, the proxy statement shall furnish the following information: A brief description of the material features of the plan, each class of per…

6.6.1314 PROXY STATEMENTS--OPTIONS, WARRANTS, OR RIGHTS If action is to be taken with respect to the granting or extension of any options, warrants, or rights (all referred to in this rule as "warrants") to purchase stock of the insurer or any subsidiary or affiliate, other than …

6.6.1315 PROXY STATEMENTS--AUTHORIZATION OR ISSUANCE OF STOCK If action is to be taken with respect to the author- ization or issuance of any stock of the insurer, the proxy statement shall furnish the title, amount and description of the stock to be authorized or issued. If the …

6.6.1316 PROXY STATEMENTS--MERGERS, CONSOLIDATIONS, ACQUISITIONS, AND SIMILAR MATTERS If action is to be The rights of appraisal or similar rights of dissen- For each company involved in a merger, consolidation, ters with respect to any matters to be acted upon, and any procedure…

6.6.1317 PROXY STATEMENTS--RESTATEMENT OF ASSETS AND ACCOUNTS If action is to be taken with respect to the restate- ment of any asset, capital, or surplus of the insurer, the proxy statement shall furnish the following information: The nature of the restatement and the date as of…

6.6.1318 PROXY STATEMENTS--AMENDMENT OF CHARTER, BY-LAWS, OR OTHER DOCUMENTS If action is to be taken with respect to any amendment of the insurer's charter, by-laws, or other documents as to which information is not required by the pre-ceding rules in this sub-chapter, the proxy…

6.6.1319 PROXY STATEMENTS--SUBMISSION WHEN STOCKHOLDER VOTE NOT REQUIRED If action is to be taken with respect to any matter which is not required to be submitted to a vote of stockholders, the proxy statement shall state the nature of the matter, the reason for submitting it to …