AR HB1391

Amends Arkansas Code § 23-40-104 to clarify that the Arkansas Insurance Code provisions apply to prepaid funeral benefits contracts funded by whole life insurance policies or annuities under § 23-40-112(h)(2).

Requires insurers to verify benefits for a contract beneficiary within three (3) business days of receiving notification of death and a request for verification from an owner, beneficiary, assignee, or authorized representative.

Verification of benefits must include whether the deceased is covered under the policy or annuity, the death benefit amount, and whether the policy or annuity is in the contestability period.

Authorizes the commissioner to promulgate rules regarding benefit verification procedures.

Establishes penalties of up to $500 per failure to provide required verification, with a maximum aggregate fine of $5,000.