23 CAR Part 136 — Verification of Life Insurance Benefits

Chapter I

Subchapter B

Subpart 1

23 CAR § 136-101 Purpose {#sec-23-car-136-101 omnilex-key=us-ar-regs-official--title-23-part-136--23 CAR § 136-101}

23 CAR § 136-101. Purpose.

The purpose of this part is to establish the process by which an insurer who has issued a whole life insurance policy or annuity which funds a prepaid funeral benefits contract, must verify benefits for a contract beneficiary.

23 CAR § 136-102 Requirements {#sec-23-car-136-102 omnilex-key=us-ar-regs-official--title-23-part-136--23 CAR § 136-102}

23 CAR § 136-102. Requirements.

(a) An insurer who has issued a whole life insurance policy or annuity which funds a prepaid funeral benefits contract shall verify the benefits of the contract beneficiary within three (3) business days from the receipt of a notification of death of a contract beneficiary and a request for verification of benefits.

(b) The three-day timeframe applies whether the request for verification of benefits is made by:

(1) An owner, beneficiary, or assignee; or

(2) The authorized representative of the owner, beneficiary, or assignee.

(c) The insurer is required to verify benefits, without limitation, in the following circumstances:

(1) Whether the deceased is a covered person under the policy or annuity;

(2) The death benefit amount under the policy or annuity; and

(3) Whether the policy or annuity is in the contestability period.

23 CAR § 136-103 Penalties {#sec-23-car-136-103 omnilex-key=us-ar-regs-official--title-23-part-136--23 CAR § 136-103}

23 CAR § 136-103. Penalties.

The Insurance Commissioner may impose a fine not to exceed five hundred dollars ($500) for each failure to provide the verification required by this part and Arkansas Code § 23-40-112(h), and not more than five thousand dollars ($5,000) in the aggregate.