§ 23-40-101. Short title
This chapter shall be known as the “Arkansas Prepaid Funeral Benefits Law”.
§ 23-40-102. Purpose
The purpose of this chapter is to provide for the regulation of the sale of prepaid funeral benefits by the Insurance Commissioner.
§ 23-40-103. Definitions
As used in this chapter: (1) “Annuity funding” means contract proceeds that are used by a seller to purchase an annuity contract that names the seller as the beneficiary of the annuity contract, the proceeds of which shall be used to pay for the funeral benefits specified in a prepaid contract, or the purchaser may […]
§ 23-40-104. Arkansas Insurance Code not affected
Except as provided in § 23-40-112(h)(2), this chapter shall not apply to any licensed insurance company or alter or affect any provisions of the Arkansas Insurance Code.
§ 23-40-105. Burial associations exempted
Nothing in this chapter shall apply to organizations or associations operating in this state as burial associations pursuant to § 23-78-101 et seq.
§ 23-40-106. Violations — Penalties
(a) (1) An officer, director, agent, or employee of an organization subject to this chapter who makes, or attempts to make, a contract in violation of this chapter, or refuses to allow an inspection of the organization’s records shall be punished by a fine of not less than one thousand dollars ($1,000) and not more […]
§ 23-40-107. Division of Prepaid Funeral Benefits — State Insurance Department Prepaid Trust Fund
(a) The Insurance Commissioner shall be responsible for the regulation of the sale of prepaid funeral benefits, and there is hereby established the Division of Prepaid Funeral Benefits within the State Insurance Department. This division shall be funded annually by the fees required to be paid by organizations subject to this chapter, which shall be […]
§ 23-40-108. Administration
(a) This chapter shall be administered by the Insurance Commissioner. (b) The commissioner is authorized to prescribe reasonable rules concerning keeping and inspection of records, the filing of contracts and reports, and all other matters incidental to the orderly administration of this chapter. (c) The commissioner is authorized to employ the personnel necessary to carry […]
§ 23-40-109. Permit required
(a) Any individual, firm, partnership, corporation, society, association, or other entity, hereinafter called an “organization”, desiring to sell prearranged or prepaid funeral services or funeral merchandise, including caskets, grave vaults, and all other articles of merchandise incidental to funeral services, in this state under a sales contract providing for prepaid disposition or funeral benefits or […]
§ 23-40-110. Application for initial or renewed permit
(a) Each organization desiring to sell prepaid funeral benefits or any organization desiring to purchase an interest in or assume the liability of any contract for prepaid funeral benefits shall file an application for a permit with the Insurance Commissioner. Each initial and renewal application for a permit shall contain such information which the commissioner […]
§ 23-40-111. Issuance of permit — Cancellation or denial
(a) (1) The Insurance Commissioner may issue a permit conditioned upon satisfactory completion of all requirements of this chapter prior to the applicant’s offering for sale or selling prepaid funeral benefits. (2) In addition, prior to the issuance of either an initial or renewal permit, the applicant must be deemed by the commissioner to be […]
§ 23-40-112. Prepaid funeral benefits contracts
(a) (1) The Insurance Commissioner shall approve forms for prepaid funeral benefits contracts. (2) (A) Except as provided in subdivision (a)(2)(B) of this section, a nonguaranteed prepaid contract or a nonspecified prepaid contract shall be approved if the prepaid contract provides the contract holder with interest or earnings during the term of the prepaid contract. […]
§ 23-40-113. Change of ownership
(a) The seller shall apply for change of ownership or control when: (1) The seller transfers all or a portion of the interest in any contract for prepaid funeral benefits; (2) The seller transfers one (1) or more of its establishments for providing funeral goods or services; (3) All or a portion of the equity […]
§ 23-40-114. Trust funds — Creation — Deposits, withdrawals, and transfers of funds
(a) All contract proceeds collected under contracts for prepaid funeral benefits, including funds collected under contracts entered into before June 28, 1985, shall be deposited with a trustee within twenty (20) business days after receipt of proceeds, to be held, invested, and administered in a trust fund for the benefit and protection of the contract […]
§ 23-40-115. Trust funds — Investments
(a) The trustees shall invest the trust fund only in the following: (1) Demand deposits, savings accounts, certificates of deposit, and all other accounts that are insured by the Federal Deposit Insurance Corporation; (2) Bonds and obligations that are insured by, fully guaranteed as to principal and interest by, and due from the United States […]
§ 23-40-116. Trust funds — Disbursements
The trustee shall disburse money or other property from the trust fund only as follows: (1) Upon the death of the contract beneficiary and upon proper proof and documentation being submitted to and approved by the Insurance Commissioner, or pursuant to such other method as may be permitted under valid rules adopted by the commissioner, […]
§ 23-40-117. Trust funds — Exemption from attachment, etc
(a) All contract proceeds held in trust pursuant to the provisions of this chapter and all income derived therefrom shall be exempt from attachment, garnishment, execution, and claims of creditors, receivers, or trustees in bankruptcy. The trust fund shall not be seized, taken, appropriated, or applied to pay any debt or liability of the seller […]
§ 23-40-118. Agent for deposit of contract proceeds
(a) Each organization subject to this chapter shall designate an agent or agents, either by names of the individuals or by titles of their offices or positions, who shall be responsible for the deposit of contract proceeds collected under contracts for prepaid funeral benefits. The organization shall notify the Insurance Commissioner of the designation within […]
§ 23-40-119. Annual report and fee
(a) Each organization shall file an annual report and an annual report fee with the Insurance Commissioner on or before March 15 of each year in such form as the commissioner may require, showing the: (1) Names or account numbers, or both, of all persons with whom contracts for prepaid funeral benefits have been made […]
§ 23-40-120. Records required — Examination
(a) Each organization which has outstanding contracts for prepaid funeral benefits shall maintain within this state any records which the Insurance Commissioner may require to enable him or her to determine whether the organization is complying with the provisions of this chapter. (b) (1) The records shall be subject to examination by the commissioner, or […]