N.J. Admin. Code § 13:36-11.12

Current through Register Vol. 56, No. 24, December 18, 2024

Section 13:36-11.12 - Deposit of preneed funds; commingling of funds prohibited; proof of establishment of trust

(a) Providers shall deposit all moneys received in connection with the establishment of a prepaid funeral agreement in a funeral trust or with the appropriate insurance company within 30 days of the receipt of such moneys by the provider.

(b) A provider may temporarily deposit all moneys received in connection with the establishment of a prepaid funeral agreement in a separate non-interest bearing account established and used exclusively for the deposit of said moneys, until the moneys are transferred to the funeral trust or insurance company in accordance with the requirements of (a) above.

(c) No provider shall commingle any funds received in payment for a prepaid funeral agreement or preneed arrangement in any business or personal checking or banking account, or in any other place other than where authorized by (a) and (b) above.

(d) The provider shall forward to the purchaser evidence of the establishment of a funeral trust except when the funds have been deposited in a pooled trust which itself provides purchasers with notification of the establishment of a funeral trust.

(e) No provider shall apply any funds, whether principal or interest, from a prepaid funeral trust or funeral insurance policy to pay for any funeral goods or services or for any other expenses or use until the death of the intended funeral recipient except as provided by N.J.S.A. 3B:11-16 and N.J.A.C. 13:36-11.7.

N.J. Admin. Code § 13:36-11.12

Amended by R.2005 d.100, effective 4/4/2005.
See: 36 New Jersey Register 4651(a), 37 New Jersey Register 1036(b).
Deleted references to licensee following "No provider" throughout; in (e), deleted "Pooled trusts" following the N.J.A.C. reference.