Ohio § 4717.35

§ 4717.35.

If a preneed funeral contract contains a provision stating that the preneed funeral

contract will be funded by the purchase of an insurance policy, the insurance agent

who sold the policy that will fund that preneed funeral contract shall require that

any payment made by the purchaser be made in the form of a check, cashier's check,

money order, or debit or credit card, payable only to the insurance company.  The insurance agent shall remit the application for insurance and the premium paid

to the insurance company designated in the preneed funeral contract within the time

period specified in division (B)(15) of section 3905.14 of the Revised Code , unless the purchaser rescinds the preneed funeral contract in accordance with division (A) of section 4717.34 of the Revised Code .  If the purchaser made payment in the form of a check made payable to the seller,

the seller may, within five business days of receiving the check, sign over and forward

the check to the insurance company designated in the preneed funeral contract. If the purchaser of a preneed funeral contract that is revocable and that is funded

by an insurance policy or annuity elects to cancel the preneed funeral contract, the

purchaser shall provide a written notice to the seller and the insurance company designated

in the contract stating that the purchaser intends to cancel that contract.  Fifteen days after the purchaser provides the notice to the seller of the contract

and the insurance company, the purchaser may cancel the preneed funeral contract and

change the beneficiary of the insurance policy or annuity or reassign the benefits

under the policy or annuity. The purchaser of a preneed funeral contract that is irrevocable and that is funded

by an insurance policy or annuity may transfer the preneed funeral contract to a successor

seller by notifying the original seller of the designation of a successor seller.  Within fifteen days after receiving the written notice of the designation of the

successor seller from the purchaser, the original seller shall assign the seller's

rights to the proceeds of the policy to the successor seller.  The insurance company shall confirm the change of assignment by providing written

notice to the policyholder. If, after a preneed funeral contract has been performed and paid for by the proceeds

of an insurance policy or annuity, there are excess funds that the purchaser previously

assigned by a written contract to the seller to pay for preneed funeral services or

funeral goods for other individuals, the insurance company or annuity company holding

such excess funds shall pay those funds directly to the seller, and the seller shall

deposit the funds into a trust or purchase insurance or annuity policies to fund additional

preneed funeral contracts.