Md. Code Regs. 10.29.06.08

Current through Register Vol. 51, No. 12, June 14, 2024

Section 10.29.06.08 - Sale or Change in the Ownership of a Funeral Corporation or Establishment

A. A funeral corporation or establishment which is in the process of being sold shall file with the Board a list of preneed contracts and document that the money resulting from the preneed contracts has been set aside in an interest-bearing, federally insured escrow or trust account.

B. The seller of the funeral corporation or establishment shall document that arrangements have been made with the buyer and with another licensee to honor the preneed contracts.

C. The seller shall notify the buyers of the preneed contract that the business is being sold and give the buyers an opportunity to either continue the same contractual arrangements with the new owner or to demand a refund of the money paid into the interest-bearing escrow or trust account.

D. On the death or disability of the seller or if the seller loses or is unable to use that individual's license, the partners or surviving spouse shall notify the Board and document that the preneed contract money has been set aside and remains inviolate, and that arrangements have been made to honor the preneed contracts.

E. On the death or disability of the seller or if the seller loses or is unable to use that individual's license, the buyer of the preneed contract shall be contacted and given an opportunity to either continue the arrangement with the remaining partners or surviving spouse or to demand a refund of the money paid into the interest-bearing escrow or trust account.

F. If a licensee files for bankruptcy and that bankruptcy involves assets which include preneed contracts and bank accounts, the bankrupt, or the trustee appointed by the court to handle the bankruptcy, shall:

(1) Notify the Board of that bankruptcy filing;

(2) Document to the Board the number of preneed accounts that exist;

(3) Identify the bank accounts for those preneed documents; and

(4) Make assurances to the Board that the preneed accounts will be honored.

G. If a licensee files for bankruptcy, the licensee shall notify the buyer of a preneed contract of the filing and give the buyer an opportunity to terminate the contract and obtain a full refund of the money paid under the preneed contract or to make arrangements to continue the agreement with the bankrupt seller or another seller.

Md. Code Regs. 10.29.06.08