(a) An application to the board for a certificate of authority shall be accompanied by the statement and other matters described in this section in the form prescribed by the board. Annually thereafter, or within an extension of time therefor, as the board for good cause may grant, the person authorized to engage in the sale of preneed contracts shall file with the board a full and true statement of his or her financial condition, transactions, and affairs, prepared on a basis as adopted by a rule of the board, as of the preceding fiscal period or at such other time or times as the board may provide by rule, together with information and data which may be required by the board.
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Terms Used In Alabama Code 34-13-191

  • Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
  • Complaint: A written statement by the plaintiff stating the wrongs allegedly committed by the defendant.
  • Contract: A legal written agreement that becomes binding when signed.
  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
  • following: means next after. See Alabama Code 1-1-1
  • Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
  • month: means a calendar month. See Alabama Code 1-1-1
  • person: includes a corporation as well as a natural person. See Alabama Code 1-1-1
  • preceding: means next before. See Alabama Code 1-1-1
  • year: means a calendar year; but, whenever the word "year" is used in reference to any appropriations for the payment of money out of the treasury, it shall mean fiscal year. See Alabama Code 1-1-1
(b) The statement shall include all of the following:

(1) The types of preneed contracts proposed to be written and the type of funding vehicles to be used.
(2) The name and address of the place of business of the person offering to write preneed contracts.
(3) Evidence that the person offering the statement has the following qualifications:

a. Has the ability to discharge his or her preneed liabilities as they become due in the normal course of business and has sufficient funds available during the calendar year to perform his or her obligations under the contract.
b. Has complied with the trust requirements for the funds received under contracts issued by himself or herself as hereinafter described.
c. Has disbursed interest, dividends, or accretions earned by trust funds, in accordance with this chapter and rules adopted hereunder.
d. Has complied with this chapter and any rules of the board.
(4) Any other information considered necessary by the board to meet the board’s responsibilities under this chapter.
(c) If the person is an individual, the statement shall be sworn by him or her; if a firm or association, by all members thereof; or, if a corporation, by any officer of the corporation.
(d)

(1) An application to the board for an initial certificate of authority shall be accompanied by an application fee in an amount to be determined by the board, not to exceed one hundred ninety-eight dollars ($198). Thereafter, each annual application for renewal of a certificate of authority shall be accompanied by the appropriate fee as determined by the board not to exceed ninety-nine dollars ($99).
(2) Any person or entity that is part of a common business enterprise that has a certificate of authority issued pursuant to this chapter and elects to operate under a name other than that of the common business enterprise shall submit an application on a form prescribed by the board to become a branch registrant. Upon the approval of the board that the entity qualifies to sell preneed contracts under this chapter except for the requirements of subparagraph 1., of paragraph a. of subdivision (3) of subsection (b) and if the certificate holder meets the requirements of subparagraph 1., a branch registration shall be issued. Each branch registrant may operate under the certificate of authority of the common business enterprise upon the payment of a fee established by the board not to exceed one hundred ninety-eight dollars ($198) accompanying the application on September 1 annually.
(e) Upon the board being satisfied that the statement and matters which may accompany the statement meet the requirements of this chapter and of its rules, the board shall issue or renew the certificate of authority.
(f) The certificate of authority shall expire annually on October 1, unless renewed, or at such other time or times as the board may provide by rule.
(g) On or before a date adopted by the board each year, the certificate holder shall file with the board in the form prescribed by the board a full and true statement as to the activities of any trust established by it pursuant to this chapter for the preceding calendar year.
(h) In addition to any other penalty that may be provided for under this chapter, the board may levy a fine not to exceed fifty dollars ($50) per day for each day the certificate holder fails to file its annual statement, and the board may levy a fine not to exceed fifty dollars ($50) per day for each day the certificate holder fails to file the statement of activities of the trust. Upon notice to the certificate holder by the board that the certificate holder has failed to file the annual statement or the statement of activities of the trust, the certificate holder’s authority to sell preneed contracts shall cease while the default continues.
(i) To facilitate uniformity in financial statements and to facilitate analysis, the board may by rule adopt a form for financial statements. The holder of a certificate of authority may submit a written request to the board to exempt the holder from filing financial statements at renewal. The board may waive the requirement for filing a financial statement at renewal if all of the following are satisfied:

(1) No valid complaint has been filed since the last audit.
(2) No administrative action against the preneed entity has been instituted since the last audit.
(3) The certificate holder certifies that all outstanding preneed contracts written by the holder since April 30, 2002, are fully funded in accordance with this chapter.
(4) The certificate holder certifies that it will fully fund all preneed contracts with life insurance, annuity, or will deposit 100 percent of all funds collected on all preneed contracts in trust within 30 days after the end of the calendar month in which the funds are collected.
(5) The preneed entity has provided to the board in a timely manner all required and requested records.
(6) The preneed entity agrees to file reports of its preneed activity on a form , in a format, and as often as prescribed by the board.
(j) The board may authorize the transfer of certificates of authority and establish fees for the transfer in an amount not to exceed one hundred thirty-two dollars ($132). Upon receipt of an application for transfer, the board may grant a temporary certificate of authority to the proposed transferee, based upon criteria established by the board by rule, which criteria shall promote the purposes of this chapter in protecting the consumer. A temporary certificate of authority shall expire 60 days after issuance unless renewed by the board.
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