(a)

1. (1) For prepaid funeral benefits contracts that are funded by a life insurance policy, certificate, or an annuity contract in which cancellation is sought under Arkansas Code § 23-40-122 or effectuated by action of the purchaser, no existing insurer shall unreasonably delay changing the ownership, beneficiary, or status of a life insurance policy or annuity to a substitute funeral provider.
2. (2) Every existing preneed insurer shall require a purchaser who seeks to change either the beneficiary of a life insurance policy or annuity funding a prepaid funeral benefits contract to any party other than the seller or the assignment of benefits from the seller to another person or entity to follow the procedures in 23 CAR § 111-106(d).

(c)

1. (1) Upon receipt of a request by a purchaser to cancel a policy, certificate, or annuity contract that is used to fund a prepaid funeral benefits contract, or upon notice that a prepaid funeral benefits contract is subject to cancellation based upon actions taken by the customer, the insurer shall require the customer to execute Form AID-FI-C3 and to forward such form to the seller of the original prepaid funeral benefits contract.
2. (2) The insurer may withhold payment of any amounts due under Arkansas Code § 23-40-122 until it receives properly executed copies of Forms AID-FI-C2 and AID-FI-C3.
3. (3) Upon receipt of properly executed Forms AID-FI-C2 and AID-FI-C3, the insurer shall pay to the seller the amounts provided under Arkansas Code § 23-40-122.