Subject 590-3-4 PRENEED DEALERS
|(1)||Establishment of Account. Each preneed dealer that has not established a trust fund account pursuant to Section 10-14-7 or 10-14-7.1 of the Act shall establish one or more preneed escrow accounts into which deposits shall be made pursuant to Section 10-14-7 of the Act. Said accounts shall be either segregated (containing the deposits required to be made as a result of a single transaction) or aggregated (containing deposits required to be made as a result of multiple transactions). In the event all services and merchandise under a contract have been provided or funds for any merchandise or services have been refunded pursuant to the Act and these Rules, and said funds were in a segregated account, the account may be closed upon payment of funds from the account. In the event funds are originally deposited into an aggregated account, they may subsequently be deposited into a segregated account, provided the amount of funds deposited on account of any transaction is not less than the amount which would be required to be refunded pursuant to Section 10-14-17(a)(3) or 10-14-17(a)(4) of the Act and these Rules.|
Funding through Insurance.
|(3)|| Funding through Certificates of Deposit
for Segregated Accounts.
|(6)||If amounts received pursuant to Section 10-14-7 of the Act are deposited in a preneed escrow account which bears interest, a sum not less than the lesser of 10 percent of the escrowed amount or one-half of the interest earned as of the date of release may be retained by the preneed dealer as an administrative fee for reimbursement of the preneed dealer for costs. The remaining interest shall be retained in the account with the principal and shall be held, accounted for and transferred in the same manner as the principal amount to assure delivery of the same quality of service and merchandise for which the preneed contract was made.|
|(7)|| Conversion of Preneed Escrow Account to
|(1)||Actual and physical delivery of the burial merchandise to the purchaser or the purchaser's representative at a place designated by him or her at the time of need, or in the case of merchandise other than a monument or outer burial container intended for use with a casket to be buried, and not intended to be affixed to realty above ground and to be monumental in character, at a time prior to the time of need; or|
|(2)||With the permission of the purchaser or the purchaser's representative, physical attachment of the burial merchandise, if it is a monument, to a burial space, individual crypt or mausoleum space owned by the purchaser.|
|(2)||Review. Any preneed escrow agreement may be subject to the review and approval of the Secretary of State to determine compliance with the Act and these Rules. In the event the Secretary of State determines, after review, that the agreement does not comply with the Act and applicable Rules, the preneed dealer shall be notified in writing by the Secretary of State regarding any changes required to be made for compliance with the Act and the Rules.|
|(3)||Preneed escrow agreements on file with the Secretary of State prior to July 1, 2000, may be reviewed by the Secretary of State and, if reviewed, the preneed dealer shall be notified in writing of any changes required for compliance with the Act and the rules and regulations promulgated thereunder.|
|(4)||A preneed dealer, after written notification by the Secretary of State, shall have a reasonable period of time, not to exceed thirty (30) days, in which to respond and act upon changes to the preneed escrow agreement required by the Secretary.|
|(4)||Certification. Each preneed escrow agreement drafted by the registrant or its legal representative submitted to the Secretary of State must include a certification clause verifying that the agreement is in accordance with the Act and the Rules and Regulations.|
|(1)||Corporate and Financial Records.Each preneed dealer required to register with the Secretary of State shall keep and maintain its business and financial records for the preneed dealer and its preneed escrow account as segregated records separate and apart from the records of any other preneed dealer, financial accounts, or business, including any other business of the preneed dealer, preneed dealer salespersons, or escrow account agent.|
|(2)|| Sales Contracts.
|(3)|| Sales Journal. Each preneed dealer
required to register with the Secretary of State shall keep and maintain a
sales journal at the preneed dealer's principal place of business. Said sales
journal shall contain, at a minimum, the following items:
|(4)||Joint Sales Record. If a person, as defined by the Act, is registered with the Secretary of State both as a cemetery and as a preneed dealer, the required records regarding sales contracts and sales journal to be kept pursuant to Rules 590-3-3-.03 and 590-3-3-.04 shall be kept jointly so that there will be one sales journal with consecutively numbered sales contracts for the entire cemetery.|
|(5)|| Burial Merchandise Inventory Log.
|(1)|| The amount of
interest accruing on the sales price of merchandise and services described in
O.C.G.A. § 10-14-17 and to be refunded
pursuant to the provisions thereof shall be computed as follows:
|(2)||It shall not be a violation of the Act for a registrant to refund the incorrect amount of interest provided it can demonstrate that it has made a good faith attempt to refund the correct amount and, upon a determination by the Secretary of State, after notice and opportunity for a hearing, that the incorrect amount was refunded and represented no more than a 10% variance from the correct amount, and that the registrant promptly refunds any difference between the amount originally refunded and the correct amount, together with interest at the legal rate.|
Each preneed registrant required to register with the Secretary of State shall file an annual report in a form specified by the Secretary of State.
|(1)|| The report
shall be deemed to be timely filed if it is either:
|(2)||In the case of an aggregated account, the report must include all supporting documents including, but not limited to, a calendar year end bank statement.|
|(1)||Establishment of Trust Fund. Each preneed dealer that sells burial or funeral merchandise on a preneed basis or preneed burial or funeral services, other than preneed funeral services described in Section 10-14-7.1 of the Act, and has not established either an escrow account pursuant to Section 10-14-7 of the Act or a trust account for preneed funeral services pursuant to Section 10-14-7.1 of the Act shall establish a trust fund into which deposits shall be made pursuant to Section 10-14-7 of the Act.|
|(2)|| Preneed Trust Agreement.
|(4)|| Trustee of Preneed Trust Fund.