(b)

1. (1) The following release and cancellation or transfer forms for sellers and purchasers are attached as appendices to this part.

2. (2) They are the:

   1. (A) Seller's Affidavit of Contract Performance: Request to Withdraw Funds or Proceeds, Form AID-FI-C1;
   2. (B) Seller's Affidavit for Cancellation and Cash Surrender or Re-Assignment of Prepaid Funeral Benefits Contract Proceeds, Form AID-FI-C2;
   3. (C) Affidavit and Request of Purchaser to Cancel a Prepaid Funeral Benefits Contract, Form AID-FI-C3; and
   4. (D) Instructions for recordkeeping.

(c)

1. (1) All prepaid funeral benefits contracts issued on and after July 1, 1995, shall be governed by Acts 1995, No. 852 (Arkansas Prepaid Funeral Benefits Law, Arkansas Code § 23-40-101 et seq., as amended).
2. (2) Pursuant to a consent judgment entered into by the State Insurance Department in Denver Roller, Inc., et al. v. Lee Douglass, Arkansas Insurance Commissioner, et al., Sixth Division, Chancery Court of Pulaski County, #IJ-95-3835 (1995), Section 12 of Acts 1995, No. 852, amending Arkansas Code § 23-40-122, is not applicable to prepaid funeral benefit contracts executed prior to July 1, 1995.

(d)

1. (1) In the case of prepaid funeral benefits contracts in which cancellation or transfer is sought under Arkansas Code § 23-40-122, the purchaser shall be entitled to cancel such contract with the seller or transfer it to a substitute provider consistent with the rights under Arkansas Code § 23-40-122 by providing to the seller the cancellation or transfer request form adopted by this part, Form AID-FI-C3, along with any appendices required in this part.
2. (2) Upon receipt of the cancellation or transfer request forms for prepaid funeral benefits contracts funded by cash, the seller shall process and complete the cancellation or transfer request within forty (40) days of its receipt of the cancellation or transfer request form.

3. (3)

   1. (A) For prepaid funeral benefits contracts funded by a life insurance policy or annuity, the seller shall complete the Seller's Affidavit for Cancellation and Cash Surrender or Re-Assignment of Prepaid Funeral Benefits Contract Proceeds, Form AID-FI-C2, and forward it to the existing insurer along with a copy of the purchaser's cancellation or transfer request form, Form AID-FI-C3, within twenty (20) days after receipt of the purchaser's cancellation or transfer request forms.
   2. (B) The existing insurer shall have thirty (30) days from receipt of Form AID-FI-C2 and Form AID-FI-C3 to:

(i) Complete the cancellation or transfer request;

1. (ii) Refund to the purchaser or transfer to the substitute provider the amounts specified in Arkansas Code § 23-40-122(a)(2) and (3); and

   1. (iii) Pay to the seller any funds exceeding those amounts.

2. (4)

   1. (A) In processing any cancellation or transfer request, the seller shall not require the purchaser to sign, acknowledge, or provide any releases, notices, or agreements of the seller beyond the forms required by this part.
   2. (B) For prepaid funeral benefits contracts that are funded by life insurance or by annuities in which cancellation is sought under Arkansas Code § 23-40-122, the purchaser may, however, be required to execute or acknowledge the standard and approved forms of the insurer that effect a change of status, ownership, or beneficiary of the life insurance policy or an annuity.
3. (5) No seller or existing insurer shall be considered in violation of the time limits under this section, regardless of the manner of funding, if the completion of the cancellation or transfer is delayed because of a delay or failure to act by a person or party not under the control of the seller or existing insurer.