KRS 304.12-240: Regulations relating to payment and disclosure by life insurers when

funds are used for preneed funeral contracts or prearrangements.

(1) As used in this section, unless the context requires otherwise:

(a) "Preneed funeral contract or prearrangement" means an agreement by or for an

individual before that individual's death relating to the purchase or provision

of specific funeral or cemetery merchandise or services; and

(b) "Agent" has the meaning provided in KRS 367.932.

(2) The commissioner shall adopt regulations requiring life insurers to provide

disclosure to consumers when life insurance or annuities are used to fund preneed

funeral contracts or prearrangements.

(3) Life insurance and annuity benefits used to fund preneed funeral contracts or

prearrangements shall not be paid by a life insurer until the agent has proven the

death of the person for whose service the premiums were paid by furnishing the life

insurer with a verified or certified copy of a record verifying the death, issued by the

state registrar of the Vital Statistics Branch or its successor agency as authorized by

KRS Chapter 213, or a provisional certificate of death as described in KRS

213.076.