§ 46-1-202 — Fidelity bond coverage - Exemptions

(a) Every cemetery company shall carry fidelity bond coverage of at least one hundred thousand dollars ($100,000) or a higher amount that the commissioner deems sufficient for officers and employees who handle money and securities. (b) The annual financial report required by § 46-1-214 to be filed with the commissioner shall indicate the amount of fidelity bond coverage, the classes of employees included, name of carrier and policy number, and the expiration date of coverage. (c) Cemeteries with combined funds, defined as cash, investments and assets, of less than forty thousand dollars ($40,000) may apply to the commissioner for an exemption from meeting the requirements of subsections (a) and (b). The commissioner may grant an exemption upon receiving satisfactory documentation demonstrating that all financial transactions, including withdrawals from the pre-need merchandise and services trust fund or operating funds, require the signatures of two (2) or more designated cemetery officials. (d) If any cemetery that is currently exempt should, at any time in the future, obtain combined funds in excess of forty thousand dollars ($40,000), the cemetery shall, within sixty (60) days of notification of the commissioner, obtain the fidelity bond required by subsections (a) and (b).

Legislative History

Acts 2006, ch. 1012, § 3.