Florida Administrative Code
69 - DEPARTMENT OF FINANCIAL SERVICES
69K - Division of Funeral, Cemetery, and Consumer Services
Chapter 69K-7 - TRUSTS AND TRUST FUNDS
Section 69K-7.0125 - Alternative Form of Security for Permanent Outer Burial Receptacle Manufacturers
Universal Citation: FL Admin Code R 69K-7.0125
Current through Reg. 50, No. 187; September 24, 2024
(1) Pursuant to Section 497.283(2)(c), F.S., manufacturers of permanent outer burial receptacles shall be permitted to utilize the alternative form of security in connection with the sale of permanent outer burial receptacles sold to cemetery companies and funeral establishments in Florida. For purposes of this rule, a "permanent outer burial receptacle" as referred to in Section 497.283(2)(c), F.S., has the same meaning as an "outer burial container," as defined in Section 497.005(55), F.S.
(2) The alternative form of security available to all permanent outer burial receptacle manufacturers who supply permanent outer burial receptacles to cemetery companies and funeral establishments in Florida, shall be in compliance with Chapter 497, F.S., and shall provide for an Alternative Manufacturers' Trust, together with a Manufacturers' Delivery Surety/Guarantee, defined as follows:
(a) Alternative Manufacturers' Trust.
1. An Alternative Manufacturers' Trust
(trust) may be established in the State of Florida by a permanent outer burial
receptacle manufacturer or the Manufacturers' Delivery Surety/Guarantor which
trust shall be authorized to do business in Florida and shall be subject to
interpretation, jurisdiction and venue in Florida under all applicable Florida
laws. The trustee shall, with the Board's approval, be selected by the
manufacturer or the Manufacturers' Delivery Surety/Guarantor.
2. Each deposit to the trust in connection
with a pre-need sale of its product, shall be accounted for separately by the
trustee and shall provide for quarterly valuation and pro-rata allocation of
trust fund earnings and expenses during the period to each then outstanding
trust account or sub-account;
3.
The amount deposited as a result of each pre-need sales transaction will be
made directly payable to the trust and shall be equal to one-hundred (100%)
percent of the then existing manufacturer's wholesale price. The funds shall
remain in the trust until such time as they become available for disbursement
under Chapter 497, F.S., which disbursements shall be limited to the following:
a. The payment of trust expenses as provided
in Chapter 497, F.S.;
b. The refund
of a trust deposit, which, in the event a pre-need contract purchaser elects to
cancel his or her pre-need contract, shall be made to the manufacturer for
delivery to the pre-need seller;
c.
The payment by the trustee to the manufacturer after delivery at the time of
need, upon submission to the trustee of a fully completed invoice for property
delivered. Payment by the trustee out of the trust to the manufacturer shall be
limited to the lesser of the manufacturers' list price at the time of need or
to the specific amount of funds in the trust allocated to the specifically
identified account or sub-account relating to the invoice submitted;
d. The payment to the Department or Board in
order to reimburse the Department or Board in the event the Department or Board
is required to make payment in order to complete delivery at the time of need
in response to purchaser's claim, where the manufacturer has failed to make
delivery of the permanent outer burial receptacle and the Manufacturers'
Delivery Surety/Guarantor has not performed pursuant to its Manufacturers'
Delivery Surety/Guarantee.
(b) Manufacturers' Delivery Surety/Guarantee.
In addition to the trust provided by this rule, a Manufacturers' Delivery
Surety/Guarantor shall execute and deliver to the pre-need seller a
Manufacturers' Delivery Surety/Guarantee which shall provide:
1. In the event that the manufacturer shall
for any reason whatsoever not be able to deliver the permanent outer burial
receptacle at the purchaser's time of need, then in such event (prior to
disposition of funds from the trust), the Manufacturers' Delivery
Surety/Guarantor shall deliver the permanent outer burial container at the time
of need for the lesser of its then existing list price, or that portion of the
trusted funds allocated to the specific trust account or sub-account.
2. In the event the Manufacturers' Delivery
Surety/Guarantor operating under this rule shall be unable to effect delivery
or its operations are for any reason discontinued, the trust shall continue in
operation but the Department shall take over as trustee for the trust. The
trust shall no longer accept deposits on pre-need contract sales and all funds
deposited in connection with all prior and outstanding contracts in which
delivery was effected shall remain in trust until the terms of all outstanding
contracts have been fully satisfied.
(c) Manufacturers' Delivery Surety/Guarantor
Qualification.
1. In order for any
Manufacturers' Delivery Surety/Guarantor to be considered for approval by the
Board under this rule, such Manufacturers' Delivery Surety/Guarantor shall be
affiliated with a manufacturer doing business in Florida.
2. Any Manufacturers' Delivery
Surety/Guarantor approved by the Board who wishes to utilize this rule shall:
a. Obtain a certificate of approval from the
Board to act as a Manufacturers' Delivery Surety/Guarantor and to establish an
Alternative Manufacturers' Trust for the receipt of funds in Florida in
connection with the sale of permanent outer burial receptacles sold on a
pre-need basis;
b. File a copy of
all forms, certificates, guarantees and trust agreements and all changes or
modifications thereof, with the Department, for review as to legal sufficiency;
and
c. Guarantee to the pre-need
seller pursuant to this rule that its permanent outer burial receptacle
products will be available for delivery at any time of
need.
3. The
Manufacturers' Delivery Surety/Guarantee shall at all times assure an
equivalent or better product will be delivered at the time of need. The
Manufacturers' Delivery Surety/Guarantee shall include as an exhibit, a list of
the Manufacturers' Delivery Surety/Guarantors' product line. Said exhibit shall
be updated on an annual basis with the Board by the approved manufacturer. With
regard to the manufacturers' wholesale or selling price, the manufacturer shall
also file, on an annual basis, any changes in its wholesale or selling price
with the Board.
Rulemaking Authority 497.103, 497.283(2)(c), 497.458(1)(e) FS. Law Implemented 497.103, 497.283 FS.
New 6-15-95, Amended 3-5-01, Formerly 3F-7.0125, Amended 10-6-19.
Disclaimer: These regulations may not be the most recent version. Florida may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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