Alabama Administrative Code
Title 482 - ALABAMA DEPARTMENT OF INSURANCE
Chapter 482-3-003 - PRENEED CONTRACTS AND CERTIFICATES OF AUTHORITY
Section 482-3-003-.04 - Sale Of "Return Of Mortal Remains" Plans

(1) For purposes of this Chapter, a "return of a mortal remains plan" refers to a contract or agreement by whatever title or name, sold in conjunction with a preneed contract, in which a third party provider other than the preneed contract seller agrees, in exchange for a cost paid by or for the plan beneficiary, to cause transportation of the decedent's remains in the event the decedent dies outside the scope of any radius clause or geographical limitation expressed in a preneed contract for funeral or cemetery merchandise or services. The plan may or may not:

(2) A return of mortal remains plan may be offered in conjunction with the sale of a preneed contract. A foreign (non-Alabama) business entity shown as the provider or seller in the agreement must have registered through the office of the Alabama Secretary of State as and to the extent required by the Alabama Business and Nonprofit Entity Code, Code OF Ala. 1975, § 10A-1-1.01 et. seq. (2010).

(3) A preneed provider offering a return of mortal remains plan shall have in effect a written agreement with the plan provider which describes the terms, conditions, and restrictions under which the preneed provider can offer the plan to prospective purchasers. The agreement should include provisions describing the manner in which the cost of the plan is remitted to the plan provider; expressing the amount to be paid to the preneed provider by the plan provider for having sold a plan (or the formula from which that amount can be determined); identifying any third-party provider relied upon to perform the benefits called for in the plan; and any insurance company provider insurance to be used in paying for or defraying the cost of performance of the plan benefits.

(4) A preneed provider's sale of a return of mortal remains plan must be documented separately from the preneed contract. The return of mortal remains plan shall not be listed as merchandise, a service, or otherwise in the preneed contract, and the plan's cost shall not be included as part of the total cost of the preneed contract.

(5) The price of the plan shall be collected from the purchaser at the time of sale or paid in installments by agreement distinct from the preneed contract. In the event of an installment sale, and if applicable under the agreement between the plan provider and preneed provider, the preneed provider shall disclose that the plan does not become effective until the entire plan price is collected. The plan price shall not be financed as part of the price of the preneed contract.

(6) A preneed provider shall account for amounts paid by preneed contract purchasers for return of mortal remains plans separately from amounts paid for preneed contracts. No portion of the payments shall be deposited in a preneed merchandise and services trust or otherwise treated as preneed contract payments. Funds collected as payment for a return of mortal remains plan shall be immediately remitted to the plan provider.

(7) The provider or seller of the return of mortal remains plan must furnish the following to the preneed provider for use with prospective purchasers of the plan:

(8) If the return of mortal remains plan provider relies on the preneed provider to deliver documentation to a purchaser, the preneed provider shall promptly deliver that documentation to the purchaser.

(9) Copies of complete return of mortal remains plan transaction documents as described above shall be maintained by the preneed provider as part of a purchaser's preneed contract file. The documentation shall be made available to the Department as part of a preneed examination or otherwise upon request.