KRS § 367.942 — KY Code / Title XXIX / Chapter 367 / Section 367.942
367.942 Records of licensee -- Examination by Attorney General
Status: in_force

367.942 Records of licensee -- Examination by Attorney General.

(1) Every licensee shall keep and maintain adequate records including but not limited to

the following:

(a) A cash receipts journal listing moneys received in chronological order, dates,

and amounts received, and identification of the payor or purchaser;

(b) A cash disbursement journal containing the same information for moneys

disbursed. If a separate bank account is kept exclusively for any such funds,

the checkbook could be used as a cash disbursement journal;

(c) A "reconciliation" done at least once every twelve (12) months. The

reconciliation shall indicate the beginning balance in the trust account,

payments received during the period, interest earned during the period,

disbursements on either cancellation or the death of the beneficiary, and the

ending balance for the period. The ending balance for each period is

determined as follows:

Beginning Balance

+ Payments received

+ Interest

- Disbursements

Ending Balance;

(d) Documentation files supporting the reconciliation and containing the preneed

burial contract. Each file, consisting of a separate file for each contract, should

include the name and address of the purchaser, the beneficiary, and the

financial institution in which the trust funds were deposited. Passbooks,

certificates, and other evidence of the account with the financial institution

should be kept with the individual files, depending on the safety and security

of the files; and

(e) A certified copy of a verification of death, issued by the state registrar of the

Vital Statistics Branch or its successor agency as authorized by KRS Chapter

213, or a provisional certificate of death as described in KRS 213.076, upon

the death of each person for whose service funds were paid to the licensee by

the trustee under a preneed burial contract.

(2) All sales, trust fund, and accounting records of the agent licensee shall be readily

available at the agent's principal place of business in this state at reasonable times

for examination by an authorized representative of the Attorney General's office.

(3) The necessary expenses of any examination made pursuant to this section shall be

paid by the licensee, but in no case shall the Attorney General or his or her

authorized representatives be paid more than the actual expenses of such

examination not to exceed the lesser of the following amounts: one hundred dollars

($100) per day for each auditor or five dollars ($5) for each agent's sales contract

examined. The agent may pay for this expense using interest moneys which have

accrued on the agent's existing preneed funeral trust fund accounts. Any withdrawal

of interest for this purpose shall be taken as a pro rata share of all of the agent's

existing preneed funeral trust fund accounts. The Attorney General shall be advised

in writing by the agent when interest moneys is the source of payment and shall

receive written certification from the financial institution or agent that the

withdrawal was a pro rata share.

(4) This section shall apply to examinations of all preneed funeral contracts whether

entered into prior to or after July 13, 1984.