AR SB806

Amends Arkansas Code § 23-40-122(2) to require sellers of prepaid funeral contracts funded by life insurance to assign or transfer the life insurance policy or funds equal to 100% of the cash surrender value to a substitute provider if the purchaser changes providers.

For revocable prepaid contracts, purchasers may receive at least 100% of the policy's cash surrender value (not exceeding premiums paid) before the beneficiary's death, or at least 100% of policy proceeds (not exceeding the original face amount) after death.

For irrevocable prepaid contracts, purchasers cannot receive refunds before the beneficiary's death but may change providers, requiring the seller to transfer the policy or funds equal to at least 100% of the cash surrender value to the substitute provider.

After the beneficiary's death on an irrevocable contract, the seller must transfer at least 100% of policy proceeds to the substitute provider, not to exceed the original policy face amount.