(a) With the exception of a funeral director licensed in this state, an individual shall not offer or sell pre-need funeral contracts without first registering with the commissioner as a pre-need sales agent. An individual shall not sell, solicit, or negotiate prearrangement insurance policies without first registering with the commissioner as a pre-need sales agent and obtaining an insurance producer license pursuant to the Tennessee Insurance Producer Licensing Act of 2002, compiled in title 56, chapter 6, part 1.

Terms Used In Tennessee Code 62-5-404

  • Commissioner: means the commissioner of commerce and insurance or the commissioner's designee. See Tennessee Code 62-5-403
  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Funeral establishment: means any business, whether a proprietorship, partnership, firm, association or corporation, engaged in arranging, directing or supervising funerals for profit or other benefit, the preparing of dead human bodies for burial, the disposition of dead human bodies, the provision or maintenance of place for the preparation for disposition, or for the care or disposition of human bodies. See Tennessee Code 62-5-101
  • Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
  • Person: includes a corporation, firm, company or association. See Tennessee Code 1-3-105
  • Pre-need sales agent: means an individual who has applied for and has been granted, or who engages in conduct requiring, registration to sell pre-need funeral contracts on behalf of a pre-need seller pursuant to this part. See Tennessee Code 62-5-403
  • Pre-need seller: means a funeral establishment or other individual, firm, partnership, company, corporation, or association that has applied for and has been granted, or that engages in conduct requiring, registration to sell pre-need funeral contracts pursuant to this part. See Tennessee Code 62-5-403
  • State: when applied to the different parts of the United States, includes the District of Columbia and the several territories of the United States. See Tennessee Code 1-3-105
(b) No funeral establishment or other individual, firm, partnership, company, corporation, or association may offer or sell pre-need funeral contracts without first registering with the commissioner as a pre-need seller. A funeral establishment or other individual, firm, partnership, company, corporation, or association with more than one (1) physical location in this state shall obtain a separate registration for each physical location where it acts as a pre-need seller.
(c) This section does not apply to a person who is licensed under § 62-5-305 and is selling pre-need funeral contracts only on behalf of a funeral home that is owned, in whole or in part, by that person. However, that person remains subject to title 56, chapter 6, part 1.
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