1. A THE MORTICIAN, FUNERAL DIRECTOR OR UNDERTAKER
SURVIVING SPOUSE IS NOT THE OWNER OF OR BENEFICIARY UNDER THE LIFE
INSURANCE POLICY OR ANNUITY CONTRACT; AND

2. THE BENEFITS PAYABLE AT THE DEATH OF THE INSURED
TO THE ASSIGNEE UNDER THE POLICY OR CONTRACT ARE LIMITED TO THE AMOUNT
NECESSARY TO PAY THE TOTAL PRICE OF THE SERVICES AND MERCHANDISE
AGREED ON IN THE PRE NEED CONTRACT.

2. AN ASSIGNMENT OF BENEFITS TO THE MORTICIAN.
FUNERAL DIRECTOR OR SURVIVING SPOUSE MAY BE REVOKED AT ANY TIME BY THE
OWNER OF THE LIFE INSURANCE POLICY OR ANNUITY CONTRACT;

3. SUBJECT TO ITEM 4 OF THIS SUBPARAGRAPH. THE
MORTICIAN, FUNERAL DIRECTOR. OR SURVIVING SPOUSE 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
PRE-NEED CONTRACT; AND

4. 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 PRE-NEED CONTRACT ARE PAID
TO THE BENEFICIARY UNDER THE LIFE INSURANCE POLICY OR ANNUITY CONTRACT.

(II) A PRE-NEED CONTRACT THAT IS FUNDED BY A LIFE
INSURANCE POLICY OR AN ANNUITY CONTRACT SHALL TERMINATE IF THE
ASSIGNMENT OF BENEFITS TO THE MORTICIAN. FUNERAL DIRECTOR OR SURVIVING
SPOUSE IS REVOKED BY THE OWNER OF THE LIFE INSURANCE POLICY OR ANNUITY
CONTRACT.

(II) (III) 1. THE OFFER, SALE, OR ASSIGNMENT OF A LIFE
INSURANCE POLICY OR ANNUITY CONTRACT TO FUND A PRE-NEED CONTRACT IS
NOT SUBJECT TO THIS SECTION.

2. A PRE-NEED CONTRACT FUNDED BY A LIFE INSURANCE
POLICY OR AN ANNUITY CONTRACT IS NOT SUBJECT TO SUBSECTION (D) OR (E) OF
THIS SECTION.

Article - Insurance

27-211.

(a) This section does not apply to:

(1) insurance on the life of a debtor in connection with a specific loan or
other credit transaction; [or]

(2) insurance on a debtor that provides indemnity for payments that are
due on a specific loan or other credit transaction while the debtor is disabled as
defined in the policy; OR