(a) Every cemetery authority operating a perpetual care cemetery and every cemetery or pre-need funeral authority offering pre-need services shall contract with an independent actuary to conduct an annual study of its level of funding. In the case of a perpetual care cemetery, the study shall be to determine whether the authority’s perpetual care fund will provide sufficient income to cover the costs of the perpetual care of the cemetery. In the case of a cemetery or pre-need funeral authority, the study shall be to determine whether the authority’s pre-need trust will be sufficient to cover the claims of pre-need plan participants.

Terms Used In Hawaii Revised Statutes 441-24.6

  • Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
  • Cemetery: means any property, or part interest therein, dedicated to and used or intended to be used for the permanent interment of human remains. See Hawaii Revised Statutes 441-1
  • Contract: A legal written agreement that becomes binding when signed.
  • Director: means the director of the department of commerce and consumer affairs. See Hawaii Revised Statutes 441-1
  • Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
  • Perpetual care cemetery: means any cemetery or section of a cemetery, the plots, crypts, or niches of which are sold or disposed of, or are offered for sale or disposition, upon the representation that the plots, crypts, or niches will receive perpetual care. See Hawaii Revised Statutes 441-1
  • Perpetual care fund: means a fund separately maintained to provide for the perpetual care of a cemetery in conformity with this chapter. See Hawaii Revised Statutes 441-1
  • Pre-need funeral authority: means any person who is engaged in the business of selling pre-need funeral services, or holds money in trust to provide for future funeral services; provided that this shall not apply to the designated trustee of the funds. See Hawaii Revised Statutes 441-1
  • Pre-need trust: means a fund separately maintained to provide for the future services agreed to or contracted for by the pre-need funeral service plan participant or the pre-need interment service plan participant. See Hawaii Revised Statutes 441-1
(b) The actuarial study shall be submitted to the director within one hundred twenty days after the close of the authority’s books for the fiscal or calendar year. At a minimum, such study shall detail the assets and liabilities of the fund or trust, the actuarial assumptions used in preparing the report and the actuary’s conclusions as to whether the levels of funding are adequate. If the actuary concludes that the funding is not adequate, the actuary shall recommend what actions are necessary to protect the perpetual care fund or pre-need trust participants.
(c) If the study concludes that the levels of funding are not adequate or that the interests of the participants in the perpetual care fund or pre-need trusts are in any other respect not adequately protected, the director may require that a greater portion of the income be transferred to the fund or trust or may take such other action as is necessary to correct any inadequacies or may suspend the authority’s right to accept further participants in the fund or trust. If requested by the authority, a hearing on the action taken by the director shall be conducted pursuant to chapter 91.

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