§ 12-1102 — Terms, defined

For
purposes of the Burial Pre-Need Sale Act, unless the context otherwise requires:
(1) Agent shall mean any person who acts for or on behalf of a pre-need
seller in making pre-need sales;
(2) Burial or funeral merchandise or services shall mean all items of
real or personal property or a combination of both or services, sold or offered
for sale to the general public by any pre-need seller, which may be used in
any manner in connection with a funeral or the interment, entombment, inurnment,
or other alternate disposition of human remains. Such term shall not include
a lot or grave space or a crypt or niche located in a mausoleum, columbarium,
or lawn crypt upon which construction has been substantially completed;
(3) Columbarium shall mean an aboveground structure or building which
is used or intended to be used for the inurnment of human remains in a niche.
A columbarium may be combined with a mausoleum;
(4) Crypt or niche shall mean a chamber in a lawn crypt, columbarium,
or mausoleum of sufficient size to inter or entomb cremated or noncremated
human remains;
(5) Delivery shall mean the act of performing the service required by
or the act of placing the item purchased in the physical possession of the
pre-need purchaser, including, but not limited to, the installing or depositing
of the item sold on or in real property owned by or designated by the person
entitled to receive such item, except that (a) the pre-need burial of a vault
shall constitute delivery only if the burial is with the consent of the pre-need
purchaser and the pre-need seller has made other pre-need vault burials prior
to January 1, 1986, and (b) delivery of a crypt or niche in a mausoleum, lawn
crypt, or columbarium or a marker or monument may be accomplished by delivery
of a document of title;
(6) Department shall mean the Department of Insurance;
(7) Director shall mean the Director of Insurance;
(8) Document of title shall mean a deed, bill of sale, warehouse receipt,
or any other document which meets the following requirements:
(a) The effect of the document is to immediately vest the ownership
of the item described in the person purchasing the item;
(b) The document states the exact location of such item; and
(c) The document gives assurances that the item described exists in
substantially completed form and is subject to delivery upon request;
(9) Human remains shall mean the body of a deceased person;
(10) Lawn crypt shall mean an inground burial receptacle of single or
multiple depth, installed in multiples of ten or more in a large mass excavation,
usually constructed of concrete and installed on gravel or other drainage
underlayment and which acts as an outer container for the interment of human
remains;
(11) Letter of credit shall mean an irrevocable undertaking issued by
any financial institution which qualifies as a trustee under the Burial Pre-Need
Sale Act, given to a pre-need seller and naming the director as the beneficiary,
in which the issuer agrees to honor drafts or other demands for payment by
the beneficiary up to a specified amount;
(12) Lot or grave space shall mean a space in a cemetery intended to
be used for the inground interment of human remains;
(13) Marker, monument, or lettering shall mean an object or method used
to memorialize, locate, and identify human remains;
(14) Master trust agreement shall mean an agreement between a pre-need
seller and a trustee, a copy of which has been filed with the department,
under which proceeds from pre-need sales may be deposited by the pre-need
seller;
(15) Mausoleum shall mean an aboveground structure or building which
is used or intended to be used for the entombment of human remains in a crypt.
A mausoleum may be combined with a columbarium;
(16) Pre-need purchaser shall mean a member of the general public purchasing
burial or funeral merchandise or services or a marker, monument, or lettering
from a pre-need seller for personal use;
(17) Pre-need sale shall mean any sale by any pre-need seller to a pre-need
purchaser of:
(a) Any items of burial or funeral merchandise or services which are
not purchased for the immediate use in a funeral or burial of human remains;
(b) Any unspecified items of burial or funeral merchandise or services
which items will be specified either at death or at a later date; or
(c) A marker, monument, or lettering which will not be delivered within
six months of the date of the sale;
(18) Pre-need seller shall mean any person, partnership, limited liability
company, corporation, or association on whose behalf pre-need sales are made
to the general public;
(19) Substantially completed shall mean that time when the mausoleum,
columbarium, or lawn crypt being constructed is then ready for the interment,
entombment, or inurnment of human remains;
(20) Surety bond shall mean an undertaking given by an incorporated
surety company naming the director as the beneficiary and conditioned upon
the faithful performance of a contract for the construction of a mausoleum,
columbarium, or lawn crypt by a pre-need seller;
(21) Trust account shall mean either a separate trust account established
pursuant to the Burial Pre-Need Sale Act for a specific pre-need purchaser
by a pre-need seller or multiple accounts held under a master trust agreement
when it is required by the act that all or some portion of the proceeds of
such pre-need sale be placed in trust by the pre-need seller;
(22) Trustee shall mean a bank, trust company, building and loan association,
or credit union within the state whose deposits or accounts are insured or guaranteed by the Federal
Deposit Insurance Corporation or the National Credit Union Share Insurance
Fund;
(23) Trust principal shall mean all deposits, including amounts retained
as required by section 12-1114 , made to a trust account by a pre-need seller
less all withdrawals occasioned by delivery or cancellation; and
(24) Vault shall mean an item of burial or funeral merchandise or services
which is an inground burial receptacle installed individually, as opposed
to lawn crypts, which is constructed of concrete, steel, or any other material,
and which acts as an outer container for the interment of human remains.

Legislative History

Source: Laws 1986, LB 643, § 2; Laws 1992, LB 757, § 13; Laws 1993, LB 121, § 126; Laws 1999, LB 107, § 1; Laws 2003, LB 131, § 19; Laws 2009, LB259, § 2.