Article - Business Regulation

5-702.

(E) (1) A PRENEED BURIAL CONTRACT MADE IN ACCORDANCE WITH § 5-704
OF THIS SUBTITLE MAY BE FUNDED BY A LIFE INSURANCE POLICY OR AN ANNUITY
CONTRACT IF:

(I) THE OWNER OR OPERATOR OF THE CEMETERY IS NOT THE
OWNER OF OR BENEFICIARY UNDER THE LIFE INSURANCE POLICY OR ANNUITY
CONTRACT;

(II) AN ASSIGNMENT OF BENEFITS TO THE OWNER OR OPERATOR
OF THE CEMETERY MAY BE REVOKED AT ANY TIME BY THE OWNER OF THE LIFE
INSURANCE POLICY OR ANNUITY CONTRACT;

(III) SUBJECT TO ITEM (IV) OF THIS PARAGRAPH. THE OWNER OR
OPERATOR OF THE CEMETERY AGREES TO ACCEPT THE BENEFITS PAYABLE UNDER
THE LIFE INSURANCE POLICY OR ANNUITY CONTRACT AS PAYMENT IN FULL FOR
THE SERVICES AND MERCHANDISE AGREED ON IN THE PRENEED BURIAL CONTRACT;
AND

(IV) ANY BENEFITS PAYABLE UNDER THE LIFE INSURANCE POLICY
OR ANNUITY CONTRACT IN EXCESS OF THE AMOUNT NECESSARY TO PAY THE TOTAL
PRICE, AS DETERMINED AT THE TIME OF DEATH OF THE INSURED. OF THE SERVICES
AND MERCHANDISE AGREED ON IN THE PRENEED BURIAL CONTRACT ARE PAID TO
THE BENEFICIARY UNDER THE LIFE INSURANCE POLICY OR ANNUITY CONTRACT.

(2) A PRENEED BURIAL CONTRACT THAT IS FUNDED BY A LIFE
INSURANCE POLICY OR AN ANNUITY CONTRACT SHALL TERMINATE IF THE
ASSIGNMENT OF BENEFITS TO THE OWNER OR OPERATOR OF A CEMETERY IS
REVOKED BY THE OWNER OF THE LIFE INSURANCE POLICY OR ANNUITY CONTRACT.

(3) (I) THE OFFER SALE, OR ASSIGNMENT OF A LIFE INSURANCE
POLICY OR ANNUITY CONTRACT TO FUND A PRENEED BURIAL CONTRACT IS NOT
SUBJECT TO THIS SUBTITLE.

(II) A PRENEED BURIAL CONTRACT FUNDED BY A LIFE INSURANCE
POLICY OR AN ANNUITY CONTRACT IS NOT SUBJECT TO § 5-705, § 5-706, § 5-707, §
5-708. OR § 5-709 OF THIS SUBTITLE.

Article - Health Occupations

7-405.

(f) (1) A pre-need contract is not subject to the Retail Installment Sales Act.

(2) The making of a pre-need contract by a licensed mortician, a licensed
funeral director, or a holder of a surviving spouse license is not the practice of
insurance business.

(3) (I) A PRE-NEED CONTRACT MAY BE FUNDED BY A LIFE
INSURANCE POLICY OR AN ANNUITY CONTRACT IF: