Terms Used In Alabama Code > Title 44 > Chapter 3

• 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.
• Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
• AT NEED: At the time of death, or immediately following death. See Alabama Code 27-17A-2
• beneficiary: One who benefits from an act, such as one for whom a preneed contract is entered into or the successor-in-interest of a life insurance policy. See Alabama Code 27-17A-2
• BOARD OF DIRECTORS: That body of persons selected in accordance with the articles of incorporation and bylaws of a corporation formed pursuant to this chapter. See Alabama Code 27-15-83
• cemetery: A place that is established, maintained, managed, operated, or improved and which is dedicated to and used or intended to be used for the final disposition of human remains and their memorialization. See Alabama Code 27-17A-2
• CEMETERY AUTHORITY: Any person who owns or controls a cemetery or conducts cemetery business. See Alabama Code 27-17A-2
• CEMETERY MERCHANDISE: Any personal property offered for sale, contracted for sale, or sold for use in connection with the burial of, final disposition, memorialization, interment, entombment, or inurnment of human remains by a cemetery authority. See Alabama Code 27-17A-2
• CEMETERY SERVICES: Services provided by a cemetery authority for interment, entombment, inurnment, and installation of cemetery merchandise. See Alabama Code 27-17A-2
• CERTIFICATE HOLDER: A funeral establishment, cemetery authority, third-party seller, or any other person to whom a valid certificate of authority to sell preneed contracts has been granted by the commissioner. See Alabama Code 27-17A-2
• commissioner: The Alabama Commissioner of Insurance. See Alabama Code 27-17A-2
• 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.
• county: Any county in this state. See Alabama Code 27-15-83
• Decedent: A deceased person.
• Donor: The person who makes a gift.
• facilities: Structures, equipment and furnishings, or any other part or combination thereof, which are used, useful or capable of use, and the use thereof in connection with the implementation and operation of programs as defined herein. See Alabama Code 27-15-83
• Fiduciary: A trustee, executor, or administrator.
• Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
• funeral: The rites held commemorating the deceased with human remains present. See Alabama Code 27-17A-2
• FUNERAL BENEFICIARY: The person or persons who will receive the benefit of the funeral and cemetery goods and services to be delivered under a preneed contract at the time of his, her, or their death. See Alabama Code 27-17A-2
• FUNERAL DIRECTOR: One authorized by law to engage in funeral directing. See Alabama Code 27-17A-2
• FUNERAL ESTABLISHMENT: A place of business used in the care, planning, and preparation for final disposition or transportation of human remains, or any place where one or more are engaged and represent themselves to be engaged in the business of embalming or funeral directing. See Alabama Code 27-17A-2
• FUNERAL MERCHANDISE: Any personal property offered for sale, contracted for sale, or sold for use in connection with funeral directing. See Alabama Code 27-17A-2
• GOVERNING BODY: A county commission, board of revenue or other like governing body of a county, or the council, commission or other like governing body of an incorporated municipality. See Alabama Code 27-15-83
• interment: The final disposition of human remains by burial, entombment, or inurnment. See Alabama Code 27-17A-2
• Irrevocable trust: A trust arrangement that cannot be revoked, rescinded, or repealed by the grantor.
• Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
• National Bank: A bank that is subject to the supervision of the Comptroller of the Currency. The Office of the Comptroller of the Currency is a bureau of the U.S. Treasury Department. A national bank can be recognized because it must have "national" or "national association" in its name. ^{Source: OCC}
• Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
• Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
• person: includes a corporation as well as a natural person. See Alabama Code 30-3D-608
• person: Any individual, firm, corporation, partnership, joint venture, limited liability company, association, trustee, government or governmental subdivision, agency, or other entity, or any combination thereof. See Alabama Code 27-17A-2
• personal property: includes money, goods, chattels, things in action and evidence of debt, deeds and conveyances. See Alabama Code 30-3D-608
• preneed: Any time prior to death. See Alabama Code 27-17A-2
• PRENEED CONTRACT: A written contract to purchase funeral merchandise, funeral services, cemetery merchandise, or cemetery services from the seller on a preneed basis. See Alabama Code 27-17A-2
• Probate: Proving a will
• programs: The use of various behavioral programs in the care and supervision of children. See Alabama Code 27-15-83
• provider: A person who may or may not be the seller, who will actually provide the merchandise and services under the terms of a preneed contract. See Alabama Code 27-17A-2
• PURCHASE PRICE: The amount paid by the purchaser for merchandise and services purchased under a preneed contract, exclusive of finance charges, sales tax, charges relating to interment rights, arrangement conference fees, or charges for credit life insurance. See Alabama Code 27-17A-2
• purchaser: The person who purchases a preneed contract either on his or her behalf or on behalf of a third party beneficiary. See Alabama Code 27-17A-2
• RELIGIOUS INSTITUTION: An organization formed primarily for religious purposes which has qualified for exemption from federal income tax as an exempt organization under the provisions of Section 501(c)(3) of the Internal Revenue Code of 1986, as amended. See Alabama Code 27-17A-2
• seller: Any person offering or selling merchandise or services on a preneed basis including, but not limited to, funeral establishments, cemetery authorities, crematory authorities, memorial retailers, direct disposers, etc. See Alabama Code 27-17A-2
• trustee: Any person, state or national bank, trust company, or federally insured savings and loan association lawfully appointed as fiduciary over funds deposited by one or more purchasers of a preneed contract or deposited pursuant to an endowment care trust fund; not to be confused with a board of trustees. See Alabama Code 27-17A-2
• 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 30-3D-608