Florida Statutes 1983, Volume 3 - Florida State University College of ...

Ch.639 PRENEED FUNERAL MERCHANDISE OR SERVICE CONTRACTS F.S.1983
(c) Evidence that the person offering the statement:
1. Has the ability to discharge his liabilities as
they become due in the normal course of business
and has sufficient funds available during the calendar
year to perform his obligations under his contract;
2. Has complied with the trust requirements for
the funds received under contracts issued by himself
as hereinafter described;
3. Has disbursed interest, dividends, or accretions
earned by trust funds, in accordance with this
chapter and rules promulgated thereunder; and
4. Has complied with this chapter and any rules
of the department.
(d) Any other information considered necessary
by the department to meet its responsibilities under
this chapter.
(3) If the person is an individual, the statement
shall be sworn by him; if a firm or association, by all
members thereof; or, if a corporation, by the president
and secretary thereof.
(4) The fee payable to the department for issuance
of the origmal certificate of authority and each
annual renewal thereof shall be $50, which sum shall
accompany each application for an original certificate
and, thereafter, each annual statement. The fee shall
be payable to the Insurance Commissioner's Regulatory
Trust Fund.
(5) Upon the department's being satisfied that
the statement and matters which may accompany it
meet the requirements of this chapter and of its
rules, it shall issue or renew the certificate of authority
if upon investigation by the department it appears
that the principals, including directors, officers,
stockholders, employees, and agents of such person,
are of good moral character and have reputations for
fair dealing in business matters.
(6) The certificate of authority shall expire armually
on June 1, unless renewed, or at such other time
or times as the department may provide by rule.
(7) An application for an initial certificate of authority
or for the armual renewal of the certificate
shall disclose the existence of all preneed contracts
for service or merchandise funded by any method
other than a method permitted by this chapter,
which contracts are known to the applicant and name
the applicant or his business as the beneficiary upon
the death of the purchaser of the preneed contract.
Such disclosure shall include the name and address
of the contract purchaser, the name and address of
the institution where such funds are deposited, and
the number used by the institution to identify the account.
With respect to contracts entered into before
January 1, 1983, the department may not deny or refuse
to renew a certificate of authority solely on the
basis of such disclosure. The department may not require
the purchaser of any such contract to liquidate
the account if such account was established before
July 1, 1965. The department may use the information
disclosed to notify the contract purchaser and
the institution in which such funds are deposited
should the holder of a certificate of authority be unable
to fulfill the requirements of the contract.
History.-8. 5, ch. 28211, 1953; 88. 6, 7, ch. 65-393; 88_ 13, 35, ch. 69-106; 8. 4,
ch. 77-438; 8. 169, cb. 79-164; 8. 246, ch. 79-400; 8_ 2, ch. 81-318; 88. 4, 31, 32, ch.
83-316.
'Note.-Expir .. October I, 1993, pursuant to 8. 32, ch. 83-316, and is scheduled
for review pursuant to 8. 11.61 in advanoe of that date.
Cf.-8. 624.523 Insuranoe Commissioner'8 Regulatory Trust Fund.
758
1639.105 Approval of forms.-Preneed contract
forms and related forms shall be med with and
approved by the department, as provided in s.
627.410. The department may not approve any preneed
contract form that does not provide for sequential
numbering thereon.
History.-88. 5, 32, ch. 83-316.
'Note.-Expire8 October I, 1993, pursuant to 8. 32, ch. 83-316, and is scheduled
for review pursuant to 8. 11.61 in advance of that date.
639.11 Disposition of proceeds received on
contracts.-
1(1) All of the funds paid to or collected by any
person under a preneed contract for services, and 70
percent of all funds paid to or collected by any person
under a preneed contract for funeral merchandise,
shall, within 30 days after the end of the calendar
month in which payment is received, be deposited in
this state under the terms of a trust instrument entered
into with a national or state bank or savings
and loan association having trust powers or a trust
company. The trust agreement shall be submitted to
the department for approval and filing. No interest,
dividend, or accretion on the funds deposited in trust
which has been credited to an individual contract
may be withdrawn unless an amount equal to all payments
on the contract is on deposit and maintained
in the trust. Funds deposited pursuant to this section
may not be loaned to a certificateholder or to any
person directly or indirectly engaged in the burial, funeral
home, or cemetery business.
1(2) The delivery of funeral merchandise before
the death of the person for whom it is purchased does
not constitute performance or fulfillment, either
wholly or in part, of any preneed contract entered
into after July 1, 1977.
1(3) At reasonable times, the trustee may disburse
income on, and appreciation of, trust funds to
a certificateholder under this chapter. Such disbursement
of income and appreciation shall be made in accordance
with the terins of the trust instrument and
the preneed contract subject to the provisions of this
chapter. The trustee shall make regular valuations of
assets it holds in trust and provide a report of such
valuations to the certificateholder at least quarterly.
Any person who withdraws appreciation in the value
of trust, other than the pro rata portion of such appreciation
which may be withdrawn upon the death
of a contract beneficiary or upon cancellation of a
preneed contract, shall be required to make additional
deposits from his own funds to restore the aggregate
value of assets to the value of funds deposited in
trust, but excluding from the funds deposited those
funds paid out upon preneed contracts which such
person has fully performed or which have been otherwise
withdrawn, as provided for in this chapter.
(4) This section, as amended by s. 6 of chapter
83-316, Laws of Florida, applies only to preneed contracts
entered into on or after October 1, 1983.
History.-8. 6, ch. 28211, 1953; 8. 8, ch. 65-393; 8. 5, ch. 77-438; 8. 247, ch.
79-400; 8. 2, ch. 81-318; ... 6, 31, 32, 33, ch. 83-316.
'Note.-Expir .. October I, 1993, pursuant to 8. 32, ch. 83-316, and is scheduled
for review pursuant to 8. 11.61 in advanoe of that date.
639.13 Cancellation of, or default on, preneed
contracts.-