(1) No person shall solicit, negotiate, or sell funeral insurance unless that person is properly licensed and appointed as a life insurance producer or as a specialized funeral insurance producer.

(2) Any person applying for a specialized funeral insurance producer license shall apply in a form approved by the commissioner. The commissioner may require a supplement to a standardized license application, or a separate license application for persons also licensed under Title 37, chapter 19, parts 3 and 4, MCA.

(3) Any person who wishes to obtain a specialized funeral insurance producer license shall disclose to the commissioner whether the person is currently licensed as funeral director, undertaker, mortician, or mortuary under Title 37, chapter 19, parts 3 and 4, MCA. Additionally, applicants shall disclose whether they have ever had such an application denied, or whether a disciplinary action has ever been taken against such a license, and the outcome of the disciplinary proceeding.

(4) Any nonresident applicant who holds a funeral director, undertaker, mortician, mortuary, or similar license, by whatever name called, in another jurisdiction must first become licensed as a funeral director, undertaker, mortician, or mortuary under Title 37, chapter 19, parts 3 and 4, MCA, before the commissioner will consider an application for a specialized funeral insurance producer license.

(5) If the Board of Funeral Service, provided for in 2-15-1743, MCA, suspends, revokes, or terminates the license of a funeral director, undertaker, mortician, or mortuary, the specialized funeral insurance producer license and any appointments will automatically terminate. The funeral director, undertaker, mortician, or mortuary must notify the commissioner within ten days after a suspension, revocation, or license termination by the Board of Funeral Service.