Alabama § 34-13-197 Inactive Certificate Holder; Surrender of License

Alabama Statutes

§ 34-13-197 — Inactive Certificate Holder; Surrender of License

Alabama·Title 34 Professions and Businesses·Ch. 13 Funeral Services·Art. 5 Alabama Preneed Funeral and Cemetery Act of 2023·Div. 2 Certificate of Authority

(a)A certificate holder shall be considered inactive upon the acceptance of the surrender of its license by the board or upon the nonreceipt by the board of the certificate of authority renewal application and fees.

(b)A certificate holder shall cease all preneed sales to the public upon becoming inactive. The certificate holder shall collect and deposit into trust all of the funds paid toward preneed contracts sold prior to becoming inactive.

(c)Any certificate holder desiring to surrender its license to the board shall first do all of the following:

(1)File notice with the board .

(2)Submit copies of its existing trust agreements.

(3)Submit a sample copy of each type of preneed contract sold.

(4)Resolve to the satisfaction of the board all findings and violations resulting from th

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(a) A certificate holder shall be considered inactive upon the acceptance of the surrender of its license by the board or upon the nonreceipt by the board of the certificate of authority renewal application and fees.
(b) A certificate holder shall cease all preneed sales to the public upon becoming inactive. The certificate holder shall collect and deposit into trust all of the funds paid toward preneed contracts sold prior to becoming inactive.
(c) Any certificate holder desiring to surrender its license to the
board
shall first do all of the following:
(1) File notice with the
board
.
(2) Submit copies of its existing trust agreements.
(3) Submit a sample copy of each type of preneed contract sold.
(4) Resolve to the
satisfaction
of the board
all findings and violations resulting from the last examination conducted.
(5) Pay all outstanding fines and invoices due the
board
.
(6) Submit its current certificate of authority.
(d) Upon receipt of the notice, the
board
shall review the certificate holder’s trust funds, trust agreements, and evidence of all outstanding preneed contracts.
(e) After a review to the
satisfaction
of the board
, the
board
shall terminate the certificate of authority by an order that shall set forth the conditions of termination established by the
board
to ensure that the preneed funds will be available for their intended purpose.
(f) The trust fund of the certificate holder shall be held intact and in trust after the certificate holder has become inactive, and the funds in that trust shall be disbursed in accordance with the requirements of the written contracts until the funds have been exhausted.
(g) The
board
shall continue to have jurisdiction over the inactive certificate holder as if the certificate were active and to require the reports and inspect the records as the
board
deems appropriate so long as there are funds in trust or preneed contracts that are not fulfilled.
(h)
Other
terms of revocation or suspension ordered pursuant to
this chapter may
apply.

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