Section 27-17A-10 Certificate required. (a) No person may sell a preneed contract without first having a valid certificate of authority. (b)(1) No person may receive any funds for payment on a preneed contract who does not hold a valid certificate of authority. (2) Any preneed transaction in which a buyer pays to the seller before […]
Section 27-17A-11 Application for certificate; statements; issuance; expiration; transfer. (a) An application to the commissioner for a certificate of authority shall be accompanied by the statement and other matters described in this section in the form prescribed by the commissioner. Annually thereafter, within six months after the end of its fiscal period, or within an […]
Section 27-17A-11.1 Report of preneed contract activity; written logs. (a) On a semi-annual basis, within 45 days after the end of each second calendar reporting period, the certificate holder shall file a report of its preneed contract activity on a form or in a format prescribed by the commissioner. The information reported shall include the […]
Section 27-17A-12 Preneed contract forms; disclosure; approval. (a) Preneed contract forms and related forms shall be filed with and approved by the commissioner. (b) Specific disclosure regarding whether, consistent with the requirements of this chapter, the certificate holder is placing certain preneed funds received with the contract in trust, in an annuity, or in insurance, […]
Section 27-17A-13 Monies to be placed in trust; compliance by pre-existing preneed contracts. (a) Except as provided in Sections 27-17A-3 and 27-17A-14, every preneed contract shall require the monies paid to the seller or trustee to be placed in trust in accordance with Article 3, for funeral merchandise and services sold by funeral establishments or […]
Section 27-17A-14 Surety bond. (a) As an alternative to the trust requirement of Section 27-17A-13, the details of which are set forth in Articles 3 and 4, a preneed provider may, with the prior approval of the commissioner, purchase a surety bond in an amount not less than the aggregate value of outstanding liabilities on […]
Section 27-17A-15 Examination by commissioner. (a) The commissioner shall, as often as he or she may deem necessary, examine the business of any person writing preneed contracts under this chapter to the extent applicable. The examination shall be made by designated representatives or examiners of the Department of Insurance. (b) The written report of each […]
Section 27-17A-16 Inactive certificate holder; surrender of license. (a) A certificate holder shall be considered inactive upon the acceptance of the surrender of its license by the commissioner or upon the nonreceipt by the commissioner of the certificate of authority renewal application and fees. (b) A certificate holder shall cease all preneed sales to the […]
Section 27-17A-17 Dissolution or liquidation of certificate holder. (a) Any dissolution or liquidation of a certificate holder shall be deemed to be the liquidation of an insurance company and shall be conducted under the supervision of the commissioner, who shall have all powers with respect thereto granted to the commissioner under Chapter 32 with respect […]
Section 27-17A-18 Preneed sales agent. (a) All individuals who offer preneed contracts to the public, or who execute preneed contracts on behalf of a certificate holder, shall be registered with the commissioner as preneed sales agents, pursuant to this article. (b) All preneed sales agents and funeral directors acting as preneed sales agents shall be […]
Section 27-17A-19 Prohibited activities. No person shall engage in this state in any trade practice which is addressed in the Alabama Deceptive Trade Practices Act (Section 8-19-1 et seq.), or as determined pursuant to this chapter to be, an unfair method of competition or an unfair or deceptive act or practice. (Act 2002-74, p. 221, […]
Section 27-17A-20 Hearing; procedures; penalties. (a) Whenever the commissioner has reason to believe that any person has engaged, or is engaging, in this state in any unfair method of competition or any unfair or deceptive act or practice as defined in this article, or is engaging in the sale of preneed contracts without being properly […]
Section 27-17A-21 Fine in lieu of suspension or revocation of certificate. (a) If the commissioner finds that one or more grounds exist for the discretionary suspension or revocation of a certificate of authority issued under this article, the commissioner may, in lieu of the suspension or revocation, impose a fine upon the certificate holder in […]
Section 27-17A-22 Violations and penalties. (a)(1) A person who knowingly receives payments for a preneed contract without having a valid certificate of authority: a. Commits a Class B felony, punishable as provided by law, as to each contract on which the payments collected equal or exceed, in the aggregate, two thousand five hundred dollars ($2,500). […]
Section 27-17A-23 Civil actions; liability. The commissioner, the Attorney General, or any person may bring a civil action against a person or company violating this chapter in the appropriate court of the county in which the alleged violator resides or has his or her or its principal place of business or in the county wherein […]
Section 27-17A-24 Construction of chapter. The provisions of this chapter are cumulative to rights under the general civil and common law, and no action of the commissioner may abrogate the rights to damages or other relief in any court. (Act 2002-74, p. 221, §1.)
Section 27-17A-25 Disposition of funds. (a) All fees collected by the commissioner pursuant to this chapter shall be deposited into the State Treasury to the credit of the Insurance Department Fund. (b) All fines collected by the commissioner pursuant to this chapter shall be deposited into the State Treasury to the credit of the State […]
