Ala. Admin. Code r. 482-3-003-.13

Current through Register Vol. 43, No. 02, November 27, 2024

Section 482-3-003-.13 - Effect Of Certificate Surrender Or Other Inactivity

(1) For purposes of this Rule, "inactivity" means surrender of a certificate of authority, lapse of a certificate due to non-renewal, or revocation of a certificate, and also includes assumed inactivity due to the following circumstances:

(a) The certificate holder has ceased transacting business, either in general, or with respect to the particular business that is the subject of the certificate.

(b) The certificate holder has filed a petition for relief under Chapter 7 of the United States Bankruptcy Code or a bankruptcy court with jurisdiction has ordered relief according to said Chapter 7.

(c) If the certificate has been suspended, the holder has failed to reinstate the certificate in the time set forth in the order of suspension or, if not so addressed in the order, within six months after the date of the order of suspension.

(2) In the event of inactivity, a certificate of authority shall be canceled and of no further force and effect, and the certificate holder shall cease all sales of preneed contracts and collection of payments for preneed contracts. The certificate holder shall immediately collect and deposit in trust that portion of funds paid toward preneed contracts sold before inactivity which are to be trusted in accordance with the Act, including, where applicable, contributions to a cemetery endowment care fund.

(3) In the event of inactivity, all existing trusts and, if applicable, any cemetery endowment care fund shall be held intact and in trust, and shall not be disbursed except as allowable under the Act.

(4) In the event of inactivity, as long there are preneed funds in trust or preneed contracts in force that are not fulfilled, a former certificate holder shall timely and properly file on an annual basis an inactive certificate holder report and any required attachments in accordance with instructions of the Commissioner posted on the Department's website.

Ala. Admin. Code r. 482-3-003-.13

Adopted by Alabama Administrative Monthly Volume XXXIII, Issue No. 02, November 26, 2014, eff. 1/1/2015.

Amended by Alabama Administrative Monthly Volume XXXVIII, Issue No. 04, January 31, 2020, eff. 3/16/2020.

Author: Commissioner of Insurance

Statutory Authority:Code of Ala. 1975, §§ 27-2-17, 27-17A-16, 27-17A-57-57 (2019).