Mo. Code Regs. tit. 20 § 2120-3.010
Current through Register Vol. 49, No. 23, December 2, 2024
Section 20 CSR 2120-3.010 - Preneed SellerPURPOSE: This rule outlines the provisions for the practice of pre-need seller.
(1) Applications for a preneed seller license are to be made on the forms provided by the board and be accompanied by the applicable fees. At a minimum an applicant shall submit with the application- (A) Evidence of being an individual resident of Missouri who is eighteen (18) years of age or older, or if a business entity, current registration of the entity name that reflects it is in good standing and, if applicable, current registration of fictitious name(s), both from the Missouri Secretary of State;(B) Evidence if the applicant is a corporation, each officer, director, manager, or controlling shareholder, is eligible for licensure if they were applying for licensure as an individual;(C) The name and address of a custodian of records responsible for maintaining the books and records of the seller relating to pre-need contracts;(D) The name and address of a trustee or, if applicable, the financial institution where any preneed trust or joint accounts will be maintained;(E) The name and address of each insurance company that may be utilized for insurance funded preneed contracts;(F) Have established, as grantor, a preneed trust, or an agreement to utilize a preneed trust with terms consistent with sections 436.400 to 436.510, RSMo. A trust shall not be required if the applicant certifies to the board that the seller will only sell insurance-funded or joint account-funded preneed contracts;(G) The name, address, and license number of an individual designated to serve as manager in charge of the seller's business;(H) The name(s), address(es), and license number(s) of each pre-need agent who is authorized to sell, negotiate, or solicit preneed contracts on behalf of the seller;(I) The name(s) and address(es) of each preneed provider with whom the licensee will have a contractual agreement to be designated as a preneed provider;(J) A written consent authorizing the state board to inspect or order an investigation, examination, or audit of the seller's books and records which contain information concerning preneed contracts sold by or on behalf of the seller;(K) A certificate of no tax due from the Missouri Department of Revenue, if applicable; and(L) A Missouri Highway Patrol fee for each person that is an officer or who has at least a ten percent (10%) interest in the business.(2) An applicant that does not meet the requirements of the board for licensure within ninety (90) days from the date the application is filed with the board and still desires to seek licensure shall file a new application and pay applicable fees.(3) If the manager in charge changes, the seller shall provide written notice to the board within thirty (30) days of the change.(4) The seller license issued by the board is effective for a specific name of a person or entity authorized to conduct business in Missouri and may include "doing business as" name(s). Whenever the ownership or name of the Missouri licensed seller changes, a new license shall be obtained. (A) If a change of ownership is caused by a change in the majority of owners, for whatever reason (death, sale of interest, divorce, etc.) without the addition of any new owner(s), it is not necessary to obtain a new seller license. However, a new application for a seller license form shall be filed as an amended application within thirty (30) days prior to the change of ownership.(B) If a corporation owns a Missouri licensed seller, it is not necessary to obtain a new seller license or to file an amended application for a seller license if the owners of the stock change.(C) However, as a separate person, if a corporation begins ownership of a Missouri licensed seller or ceases ownership of a Missouri licensed seller, a new seller license shall be obtained regardless of the relationship of the previous or subsequent owner to the corporation.(5) Except as otherwise provided in sections 436.400 to 436.510, RSMo, and any rules validly promulgated pursuant to those sections- (A) The seller shall be obligated to collect and properly deposit and disburse all payments made by, or on behalf of, a purchaser of a preneed contract; and(B) A purchaser may make payments on any preneed contract by making the payment directly to the trustee, the insurance company, or the financial institution where the joint account is held, as applicable, in lieu of paying the seller. AUTHORITY: section 333.111.1, RSMo 1986.* This rule originally filed as 4 CSR 120-3.010. Original rule filed Jan. 7, 1983, effective June 11, 1983. Moved to 20 CSR 2120-3.010, effective Aug. 28, 2006. Adopted by Missouri Register August 3, 2020/Volume 45, Number 15, effective 9/30/2020*Original authority: 333.111.1, RSMo 1965, amended 1981.