§ 10-15-107 — Deposit of funds with trustee

(1) If a contract seller enters into a
preneed contract in which the consideration is funds, the contract seller shall
deposit not less than seventy-five percent of the total preneed contract price with a
trustee. The contract seller shall deposit all funds in excess of twenty-five percent
of the total preneed contract price with a trustee within forty-five days after receipt
thereof. All funds deposited with a trustee shall be deposited under the terms of a
trust instrument, which shall not be inconsistent or in conflict with the provisions of
this article, and shall be held in trust by the trustee pursuant to the provisions of
this article. Copies of all trust instruments and amendments to such trust
instruments shall be filed with the commissioner.

(2) For each deposit with a trustee, the contract seller shall make a record
of, and provide the trustee with, the name and address of the contract buyer, the
total preneed contract price, and the amount of trustable funds. The contract seller
shall keep such record, as to each contract buyer, until five years following the
earlier of:

(a) The death of the preneed contract beneficiary; or

(b) The removal of funds from trust.

(3) Within thirty days following the last day of the calendar quarter, the
contract seller shall provide to the trustee a detailed listing of all preneed
contracts outstanding, the name and address of each contract buyer, the total
preneed contract price, accumulated receipts, and the total amount of funds
trusted for each preneed contract. If the trustee finds a significant discrepancy
between such cumulative listing and the aggregate deposits in trust, the trustee
shall contact the contract seller in order to reconcile the discrepancy. If the trustee
is unable to resolve such discrepancy to the trustee's satisfaction, the trustee shall
promptly notify the commissioner in writing of such discrepancy.

Legislative History

Source: L. 95: Entire article R&RE, p. 1041, � 1, effective May 25.