Okla. Stat. tit. 36, § 36-6125.2: Funding of contract by assignment of life insurance or

fixed annuity proceeds.

A. Contracts for prepaid funeral benefits provided for pursuant

to Section 6125 of this title may be funded by assignments of

proceeds from either a standard life or accident insurance policy or

an individual or group fixed annuity to the contracting

organization.

B. A guaranteed contract for prepaid funeral benefits provided

for pursuant to paragraph 1 of subsection B of Section 6125 of this

title which is to be funded by assignment of proceeds from either a

standard life or accident insurance policy or an individual or group

fixed annuity shall provide that:

1. The contract be funded by an insurance policy or annuity

issued in the face amount of the current purchase price of the

contract for prepaid funeral benefits;

2. All accrued benefits under the insurance policy or annuity

shall become available for disbursement to the organization upon the

death of the purchaser or designated beneficiary of the prepaid

funeral contract;

3. The purchaser or designated beneficiary shall be the same

individual named as the insured or designated beneficiary under the

insurance policy or annuity; and

4. The disbursement of insurance or annuity proceeds to the

organization shall constitute payment in full to the organization

for the prepaid funeral benefits.

C. A nonspecified contract for prepaid funeral benefits

provided for pursuant to paragraph 2 of subsection B of Section 6125

of this title which is to be funded by assignment of proceeds from

either a standard life or accident insurance policy or an individual

or group fixed annuity shall provide that:

1. The total proceeds paid to the organization under the

insurance policy or annuity shall not exceed the actual retail cost

of the funeral services and merchandise at the time of delivery;

2. Any funds remaining unused shall be refunded to the

purchaser, the personal representative of the purchaser or the

designated beneficiary; and

3. After November 1, 2009, all price lists reflecting the

actual retail cost of funeral services and merchandise used at the

time of the delivery of services shall be retained for a period of

at least six (6) years.

D. A violation of this section shall constitute a misdemeanor

and shall be punished by a fine of not less than One Hundred Dollars

($100.00) nor more than Five Hundred Dollars ($500.00) or by

imprisonment in the county jail for not less than one (1) month nor

more than six (6) months, or by both such fine and imprisonment.