Ala. Admin. Code r. 395-X-10-.02
Minimum Standards | Fine for Violating |
1. Documentation | |
a. Failure to provide any required documentation. | $200.00 |
b. Evidence of any discrepancies in or between the company's documents, reports, etc. | $200.00 |
2. Certificates and Licenses | |
a. Failure to maintain current and active certificate of authority. | $1,000.00 per day |
b. Failure to register Preneed Sales Agent. | $1,000.00 per day |
c. Failure to notify the board of a cancellation of a registration of a Preneed Sales Agent. | $200.00 |
d. Failure to publicly display the certificate of authority or preneed sales agent license in the establishment. | $500.00 |
e. Failure of the certificate of authority to address the violations and make the necessary corrections from the last examination. | $200.00 per day |
3. Preneed Contracts | |
a. Failure to provide examiner access to all preneed and at-need contract files. | $500.00 |
b. Evidence of any obvious issues or discrepancies between the contract files sample and the company's records. (e.g. preneed log, funds collected, etc.) | $200.00 |
c. Use of any contract forms not approved by the board. | $200.00 |
d. Adding at-need fees to preneed contracts. | Double the charge amount up to $10,000.00 |
e. Increasing the cost of merchandise (unless an upgrade was made at the time of need). | Double the charge amount up to $10,000.00 |
4. Preneed Log | |
a. Failure to format and complete preneed log in compliance with applicable statutes or regulations. | $500.00 |
5. Transferred Contracts | |
a. Failure to document transferred contracts on the preneed log. | $200.00 |
b. Failure to properly account for transferred contracts. | $200.00 |
c. Failure to trust the funds affiliated with transferred contracts in a timely manner. | $200.00 |
d. Failure to report transferred contracts on the required filings to the board. | $200.00 |
6. Trust | |
a. Failure to use a current approved trust to fund preneed. | $1,000.00 |
b. Failure to fund contracts using the trust option in a manner that aligns with the relevant requirements in effect at the time of the contract, both appropriately and in a timely fashion. | $500.00 |
c. Failure to appropriately disclose if trust originated life insurance is involved. | $200.00 |
d. Failure to trust sufficient amounts for each contract. | $1,000.00 per formula category |
e. Failure to maintain fair market value reports provided by the trustee. | $200.00 |
f. Failure to submit the required certification to the trustee in support of any withdrawal pursuant to a cancellation. | $200.00 |
g. Failure to support withdrawals due to fulfillment by a certification from the seller, affirming that all obligations under the contact have been fulfilled. | $200.00 |
7. General Price List | |
a. Failure to maintain publicly available establishment pricing that complies with the rules established by the Federal Trade Commission. | $500.00 |
8. Merchandise | |
a. Failure to provide evidence of delivery or installation of merchandise. | $200.00 |
b. Storing merchandise not suitable for prolonged storage or using a method of storage that does not protect the merchandise from deterioration. | $200.00 |
c. Using a third-party for storage of merchandise who is not bonded and insured. | $200.00 |
d. Failure to maintain receipts or records from the third-party storing the merchandise that indicate the item being stored, the specific preneed contract for which the merchandise is being stored, the or the precise location of the merchandise being stored, or doesn't indicate the identity and address of the bonding or insuring parties. | $200.00 |
e. Storing caskets or alternative containers. | $500.00 per casket or alternative container |
9. Cemetery | |
a. Failure to maintain a log of burial space, niche, and crypt sales. | $500.00 |
b. Failure to maintain a plat map for each cemetery location. | $500.00 |
c. Failure to maintain a book or file that reflects by date, the location by lot and space number of each person entombed or interred in the cemetery. | $200.00 |
d. Failure to maintain a publicly available written copy of cemetery rules and regulations. | $200.00 |
e. Failure to entrust the appropriate amount to the endowment care fund in a manner that aligns with the relevant requirements in effect at the time of the contract, both appropriately and in a timely fashion. | $500.00 |
Ala. Admin. Code r. 395-X-10-.02
Author: Charles M. Perine
Statutory Authority:Code of Ala. 1975, §§ 34-13-26, 34-13-27, 34-13-56, 34-13-202.