RULE 054.00.95-001 - Reg. 63 - Emergency - Trust Fund Release Forms for Prepaid Funeral Benefits Contracts

RULE 054.00.95-001. Reg. 63 - Emergency - Trust Fund Release Forms for Prepaid Funeral Benefits Contracts

SECTION 1. PURPOSE. The purpose of this Emergency Rule is to adopt forms for use in release of trust fund proceeds by Sellers of Prepaid Funeral Benefits Contracts maintaining licensure with the Arkansas Insurance Commissioner ("Commissioner") on and after July 1, 1995 pursuant to the provisions of Arkansas Act 852 of 1993.

SECTION 2. AUTHORITY & EFFECTIVE DATE: EMERGENCY ADOPTION. Authority for this Emergency Rule is given to the Insurance Commissioner for the State of Arkansas by Ark. Code Ann. §§ 23-61-108, 23-76-120, 25-15-204(b), et seq., and Act 852 of 1993, effective on and after July 1, 1995. It is hereby declared that the immediate adoption of this Rule is necessary to implement trust fund release provisions of Act 852 of 1993, to prevent imminent peril to the health, safety or welfare of the citizens of this State. Therefore the provisions of this Emergency Rule shall become effective July 1, 1995, or immediately thereafter upon signature by the Commissioner and filing; and shall expire 120 days from its effective date, unless sooner replaced with a permanent Rule adopted by the Commissioner after public notice and a hearing.

SECTION 4. APPLICABILITY AND SCOPE. This Emergency Rule shall apply to all persons engaged in the business of selling prepaid funeral benefits contracts under Ark. Code Ann. §§ 23-40-101, et seq,, as amended by Act 852 of 1993.

SECTION 5. FORMS ADOPTED. On and after July 1, 1995, permittees under Ark. Code Ann. §§ 23-40-101, et seq., selling Prepaid Funeral Benefits Contracts shall duplicate and use the Forms attached as exhibits to this Emergency Rule for trust fund releases, as applicable. They are Seller's Affidavit of Contract Performance, Form FNL-C1; Seller's Affidavit for Cancellation, Form FNL-C2; and Affidavit and Request of Purchaser to Cancel, Form FNL-C3.

SECTION 6. SEVERABILITY. Any section or provision of this Emergency Rule held by a court to be invalid or unconstitutional will not affect the validity of any other section or provision of this rule.

(6/21/1995)

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