Ala. Admin. Code r. 482-3-004-.05 - Funeral Merchandise And Services Trust - Administration, Withdrawals

(1) At all times, the certificate holder shall be able to determine the amount held in trust attributable to each contract holder.

(2) For all contracts entered into on or after January 1, 2015, the determination shall be based upon the fair market value of the trust at the time of determination and the proportionate share of the fair market value attributable to each contract holder.

(3) For all contracts in effect before January 1, 2015, the valuation of each contract may be calculated using any valuation method that had been approved by the Commissioner.

(4)

(a) For a withdrawal from the trust based on performance of a preneed contract, the certificate holder must present valid proof of death to the trustee of the trust. Such proof may take the following forms:

1. A copy of the published obituary; or

2. A copy of the burial transit permit; or

3. A working copy of the death certificate or coroner's report.

(b) For a withdrawal from the trust for merchandise which has been delivered and installed, or services performed, the certificate holder must present to the trustee any two of the following:

1. A written statement from an authorized representative of the cemetery authority certifying to delivery of the merchandise; or

2. A photograph of the merchandise as installed in the cemetery space; or

3. A copy of the paid-in-full invoice for purchase of the merchandise.

(5) In the event a trusted preneed contract has been cancelled or transferred to another provider, before any withdrawals from trust may be made, the certificate holder must present to the trustee a written notice signed by the purchaser stating that the contract has been cancelled or transferred upon the purchaser's request.

(6) In the case of a trust withdrawal upon fulfillment or cancellation of a preneed contract entered into on or after January 1, 2015, the amount withdrawn may not exceed the amount attributable to that preneed contract in proportion to the total amount held in trust for all preneed contracts as of the date of the withdrawal. In the event of a contract cancellation after the expiration of thirty (30) days from contract execution, default by purchaser, or transfer of the contract to another provider, the seller may only retain an amount not exceeding 20% of the contract purchase price withdrawn from the trust at the time of the cancellation, default by purchaser or transfer, and the balance in trust exceeding such 20% must be paid to the contract purchaser or transferred to the new provider's trust.

(7) No amount representing earnings or gain on trust assets may be withdrawn from the trust except at the time of fulfillment, cancellation, transfer or default.

Notes

Ala. Admin. Code r. 482-3-004-.05

Adopted by Alabama Administrative Monthly Volume XXXIII, Issue No. 02, November 26, 2014, eff. 1/1/2015.

Author: Commissioner of Insurance

Statutory Authority: Code of Ala. 1975, §§ 27-2-17, 27-17A-1 to -57 (2014).