(a)An application to the board for a certificate of authority shall be accompanied by the statement and other matters described in this section in the form prescribed by the board. Annually thereafter, or within an extension of time therefor, as the board for good cause may grant, the person authorized to engage in the sale of preneed contracts shall file with the board a full and true statement of his or her financial condition, transactions, and affairs, prepared on a basis as adopted by a rule of the board, as of the preceding fiscal period or at such other time or times as the board may provide by rule, together with information and data which may be required by the board.
(b)The statement shall include all of the following:
(1)The types of preneed contracts proposed to be written a
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(a) An application to the board for a certificate of authority shall be accompanied by the statement and other matters described in this section in the form prescribed by the board. Annually thereafter, or within an extension of time therefor, as the board for good cause may grant, the person authorized to engage in the sale of preneed contracts shall file with the board a full and true statement of his or her financial condition, transactions, and affairs, prepared on a basis as adopted by a rule of the board, as of the preceding fiscal period or at such other time or times as the board may provide by rule, together with information and data which may be required by the board.
(b) The statement shall include all of the following:
(1) The types of preneed contracts proposed to be written and the type of funding
vehicles
to be used.
(2) The name and address of the place of business of the person offering to write preneed contracts.
(3) Evidence that the person offering the statement has all the following qualifications:
a. Has the ability to discharge his or her
preneed
liabilities as they become due in the normal course of business and has sufficient funds available during the calendar year to perform his or her obligations under the contract.
b. Has complied with the trust requirements for the funds received under contracts issued by himself or herself as hereinafter described.
c. Has disbursed interest, dividends, or accretions earned by trust funds, in accordance with this
chapter
and rules
adopted
hereunder.
d. Has complied with this chapter and any rules of the
board
.
(4) Any other information considered necessary by the
board
to meet the
board’s
responsibilities under this chapter.
(c) If the person is an individual, the statement shall be sworn by him or her; if a firm or association, by all members thereof; or, if a corporation, by any officer of the corporation.
(d)(1) An application to the
board
for an initial certificate of authority shall be accompanied by an application fee in an amount to be determined by the
board
, not to exceed
one hundred ninety-eight dollars ($198)
. Thereafter, each annual application for renewal of a certificate of authority shall be accompanied by the appropriate fee as determined by the
board
not to exceed
ninety-nine dollars ($99)
.
(2) Any person or entity that is part of a common business enterprise that has a certificate of authority issued pursuant to this
chapter
and elects to operate under a name other than that of the common business enterprise shall submit an application on a form
prescribed
by the
board
to become a branch registrant. Upon the approval of the
board
that the entity qualifies to sell preneed contracts under this
chapter
except for the requirements of
paragraph a. of subdivision (3) of subsection (b) and if the certificate holder meets the requirements of
paragraph a.
, a branch registration shall be issued. Each branch registrant may operate under the certificate of authority of the common business enterprise upon the payment of a fee established by the
board
not to exceed
one hundred ninety-eight dollars ($198)
accompanying the application on
September
1 annually.
(e) Upon the
board
being satisfied that the statement and matters that accompany
the statement
meet the requirements of this
chapter
and of its rules, the
board
shall issue or renew the certificate of authority.
(f) The certificate of authority shall expire annually on
October
1, unless renewed, or at such other time or times as the
board
may provide by rule.
(g) On or before
a date adopted by the board
each year, the certificate holder shall file with the
board
in the form prescribed by the
board
a full and true statement as to the activities of any trust established by it pursuant to this
chapter
for the preceding calendar year.
(h) In addition to any other penalty that may be provided for under this
chapter
, the
board
may levy a fine not to exceed fifty dollars ($50) per day for each day the certificate holder fails to file its annual statement, and the
board
may levy a fine not to exceed fifty dollars ($50) per day for each day the certificate holder fails to file the statement of activities of the trust. Upon notice to the certificate holder by the
board
that the certificate holder has failed to file the annual statement or the statement of activities of the trust, the certificate holder’s authority to sell preneed contracts shall cease while the default continues.
(i) To facilitate uniformity in financial statements and to facilitate analysis, the
board,
by rule, may adopt a form for financial statements. The holder of a certificate of authority may submit a written request to the
board
to exempt the holder from filing financial statements at renewal. The
board
may waive the requirement for filing a financial statement at renewal if all of the following are satisfied:
(1) No valid complaint has been filed since the last
audit
.
(2) No administrative action against the preneed entity has been instituted since the last
audit
.
(3) The certificate holder certifies that all outstanding preneed contracts written by the holder since April 30, 2002, are fully funded in accordance with this chapter.
(4) The certificate holder certifies that it will fully fund all preneed contracts with life insurance, annuity, or will deposit 100 percent of all funds collected on all preneed contracts in trust within 30 days after the end of the calendar month in which the funds are collected.
(5) The preneed entity has provided to the
board
in a timely manner all required and requested records.
(6) The preneed entity agrees to file
reports of its preneed activity on a form
,
in a format
, and as often as
prescribed by the
board
.
(j) The
board
may authorize the transfer of certificates of authority and establish fees for the transfer in an amount not to exceed
one hundred thirty-two dollars ($132)
. Upon receipt of an application for transfer, the
board
may grant a temporary certificate of authority to the proposed transferee, based upon criteria established by the
board
by rule, which criteria shall promote the purposes of this
chapter
in protecting the consumer. A temporary certificate of authority shall expire 60 days after issuance unless renewed by the
board
.