Statutes:  36 § 6121 – 6136.18 and OAC 365:25-9-1 to 365:25-9-8

Disclaimer: The following is an overview of the laws pertaining to the permits.  Refer to the OSCN webpage to research all the statutes pertaining to the permits.

Funeral Home Prepaid Benefits Permits are issued by funeral home legal name and physical address.  A funeral home with multiple locations will need to have a permit for each location that offers prepaid funeral benefits.  All permits issued pursuant to 36 OS 6121 shall be displayed in a conspicuous place on the premises of the organization.

Cycle – January 1 to December 31

Fees – $50 initial/renewal prior to expiration

Late renewal $100 if submitted January 1 – 31^st After that time, the permit will terminate, and the entity will need to submit a new application.

Application Requirements:

• Option 1 – Life insurance
  • In-house life producer – provide life insurance producer’s Oklahoma license # and /or NPN and Biographical Affidavit
  • Copy of blank sales contracts for life products offered
• Option 2 -Trust fund
  • List financial institution(s) handling the trust
  • Copy of Trust Agreement between financial institution and funeral home
  • One of the following: cash bond or fidelity bond or letter of credit ($300,000 or 15% of all funds collected for prepaid) whichever is less
  • List Designated Agent(s) responsible for depositing funds along with a Biographical Affidavits for each 36 § 6126
  • Copy of blank preneed sales contracts used by the funeral home. Must be compliant with 36 § 6125

Note – Annual reports are reviewed by the OID Financial Division for compliance.  Refer all questions regarding the Annual Report to that division.

A Funeral Home Prepaid Benefits Permit is issued using the legal name and physical address of the entity. The name and/or address may be changed on a current permit by giving the OID 30 days written notice.  We will review the request for approval or denial. Important: The EIN must remain the same. A change to the EIN will result in a new permit application being required.

Email the completed Name &/or Address Change Request form to RIS@oid.ok.gov . Write NA if a field is not applicable, do not leave anything blank.

We will review the request and respond with an approval or denial within 15 business days.

If approved, the following must be completed:

• • The OID will change the name/address on the existing permit and send an approval to the entity
  • The entity must update the Oklahoma Secretary of State (SOS) registration for business entities immediately
  • The entity must update the Oklahoma Funeral Board registration immediately
  • We will verify that the Oklahoma SOS and Oklahoma Funeral Board registration were updated.

36 OS 6125 Disposition of funds:

A contract for Specific and Described Funeral Merchandise and Service at a Guaranteed Price. The provisions of this type of contract shall provide that interest paid by the organization upon monies deposited in trust shall be added to the principal and that principal and interest shall become available for disbursement to the organization upon the death of the beneficiary.

A contract establishing a fund for prepaid funeral benefits. The provisions of this type of contract shall require an initial minimum deposit of Twenty-five Dollars ($25.00) and shall grant the purchaser the right to add to the fund at the discretion of the purchaser. The provisions of this contract shall provide that the funds accumulated shall apply to the cost of the funeral services and merchandise selected and that any funds remaining unused shall be refunded to the purchaser or to the personal representative or designated beneficiary of the purchaser and if withdrawal of monies occurs prior to death, the organization may retain from the interest, all interest incurred in excess of the minimum amount payable pursuant to subsection D of this section less taxes and administrative fees. This type of contract shall also bear upon it the language: “Exact Funeral Merchandise and Services to be Selected at Time of Death”.

If an organization other than the organization with which the purchaser contracted provides funeral merchandise and services upon the death of the beneficiary of the contract, the organization with whom the purchaser contracted shall forward, upon receipt of request in writing from the purchaser or the personal representative of the purchaser, the net value of the contract plus the amount withheld pursuant to paragraph 1 of subsection A of this section to the organization which provided the merchandise and services or to the purchaser or the personal representative of the purchaser.

Instructions and FAQs

Transfer of Ownership
Convert Trust to Insurance Funded
Irrevocable Letter of Credit

Funeral Home Forms

Bond
Trust Agreement
Non-Specified Contract
Guarantee Contract
Irrevocable Contract
Insurance Assignment
Withdraw Funds Deposited
Transfer Pre-need Funds
Termination of Contract/Withdraw of Funds
Withdrawal of Accrued Interest
Permit Surrender
Trust Conversions
Surety Bond
Letter of Credit

Lincoln Memorial Lic / National Prearranged Services

Death Claim Instructions
Verified Statement of Performance
LMLIC Change of Bank Form
LMLIC Death Claims Submission Guide
Next of Kin/Personal Representative Form

Consumer Resources

Life Policy Locator
Request for Assistance