Compilation of Rules and Regulations of the State of Georgia › Department 590 - RULES OF OFFICE OF SECRETARY OF STATE › Chapter 590-3 - CEMETERIES, PRENEED DEALERS, AND MERCHANDISE DEALERS › Subject 590-3-5 - MERCHANDISE DEALERS › Rule 590-3-5-.01 - Insurance and Bonding Requirements

Current through Rules and Regulations filed through June 27, 2024
(1) No merchandise dealer, as a condition of
				installing merchandise in a perpetual care cemetery, may be required by the
				cemetery owner or any other person to maintain insurance, bonds or other
				coverage in excess of the following:
(a)
				Comprehensive general liability insurance covering premises operation,
				contractual liability, products and completed operations in the amount of
				$1,000,000 for each occurrence of bodily injury or property damage, with an
				aggregate liability limit of $2,000,000.
(b) Automobile liability insurance covering
				owned, non-owned, borrowed and hired vehicles, in the amount of $1,000,000 for
				each occurrence of bodily injury or property damage.
(c) In the case of a merchandise dealer
				otherwise required by applicable law to be so insured, worker's compensation
				and employer's liability insurance in an amount of $100,000 for each accident,
				with an aggregate limit of $500,000.
(d) Cemetery compliance bond in the amount of
				$10,000 guaranteeing that work performed is in compliance with the cemetery's
				rules and regulations, providing that no such bond may be required in the event
				the merchandise dealer maintains the bond described in subparagraph (e) of this
				paragraph. In lieu of a compliance bond the Secretary of State will accept as
				evidence of financial responsibility the deposit in trust of:
1. A certificate of deposit or letter of
				credit evidencing a deposit with a financial institution in the amount of
				$10,000 payable to the applicant and assigned to the Secretary of
				State;
2. An irrevocable letter of
				credit addressed to the Secretary of State in the amount of $10,000, insured by
				the Federal Deposit Insurance Corporation or other governmental agency, or a
				state or federally chartered credit union insured under
				 12 U.S.C. Section 1781  of the Federal Credit Union Act and
				conditioned only upon the rendering of a judgment in which the applicant is
				found liable for damages; or
3.
				Obligations of the United States, an agency thereof, or the State of Georgia
				which mature in not more than one year and has a market value as of the date of
				deposit of at least $10,000.
(e) As an alternative to the bond described
				in subparagraph (d) above, the merchandise dealer may post a bond with the
				Secretary of State in the amount of $25,000, in a form and with a company
				satisfactory to the Secretary of State, with language providing that the bond
				will cover the costs of correction of the dealer's failure to install
				merchandise in accordance with the rules and regulations of the cemeteries in
				which it has installed merchandise in the event of a finding by the Secretary
				of State or a court of competent jurisdiction that the dealer is so liable. In
				lieu of a bond the Secretary of State will accept as evidence of financial
				responsibility the deposit in trust of:
1. A
				certificate of deposit or letter of credit evidencing a deposit with a
				financial institution in the amount of $25,000 payable to the applicant and
				assigned to the Secretary of State;
2. An irrevocable letter of credit addressed
				to the Secretary of State in the amount of $25,000, insured by the Federal
				Deposit Insurance Corporation or other governmental agency, or a state or
				federally chartered credit union insured under
				 12 U.S.C. Section 1781  of the Federal Credit Union Act and
				conditioned only upon the rendering of a judgment in which the applicant is
				found liable for damages; or
3.
				Obligations of the United States, an agency thereof, or the State of Georgia
				which mature in not more than one year and has a market value as of the date of
				deposit of at least $25,000.
(f) Such deposits shall be held for the
				benefit of all persons to whom the applicant is liable for damages under this
				rule for a period of one year after such applicant's registration has expired
				or been revoked; provided, however, such deposits shall not be released at any
				time while there is an action pending against the applicant (including any
				direct appeal of such action or an appeal based on a petition for certiorari
				jurisdiction), of which the Secretary of State has notice, in a court of
				competent jurisdiction in which it is alleged that the applicant is liable for
				damages under this rule. Such deposits shall not be released except upon
				application to and the written order of the Secretary of State. The Secretary
				of State shall have no liability for any such release of any deposit or part
				thereof made by him in good faith. The Secretary of State may designate any
				regularly constituted state depository having trust powers domiciled in this
				state as a depository to receive and hold any such deposit. Any such deposit so
				held shall be at the expense of the applicant. Such depository shall give to
				the Secretary of State a proper trust and safekeeping receipt upon which the
				Secretary of State shall give an official receipt to the applicant. The State
				of Georgia shall be responsible for the safekeeping and return of all deposits
				made pursuant to this rule. So long as the applicant complies with this rule,
				the applicant may demand, receive, bring an action for, and recover the income
				from the securities deposited or may exchange and substitute for the letter of
				credit or securities deposited or a part thereof, with the approval of the
				Secretary of State, a letter of credit or securities of the kinds specified in
				this rule of equivalent or greater value. No judgment creditor or other
				claimant of the applicant shall levy upon any deposit held pursuant to this
				rule or upon any part thereof, except as specified in this subsection. Whenever
				any person shall file an action in a court of competent jurisdiction in which
				it is alleged that the applicant is liable for damages under this rule, such
				person, in order to secure his recovery, may give notice to the Secretary of
				State of such alleged liability and of the amount of damages claimed, after
				which notice the Secretary of State shall be bound to retain, subject to the
				order of the Superior Court of Fulton County, as provided in subsection (g) of
				this rule, a sufficient amount of the deposit to pay the judgment in the
				action.
(g) In the event that the
				applicant prevails in such action and in the event that such deposits have been
				held by the Secretary of State for a period of at least one year after the
				applicant's registration has expired or been revoked, then such deposits shall
				be released to the applicant; provided, however, such deposits shall not be
				released at any time while there is an action pending against the applicant
				(including any direct appeal of such action or an appeal based on a petition
				for certiorari jurisdiction), of which the Secretary of State has notice, in a
				court of competent jurisdiction in which it is alleged that the applicant is
				liable for damages under this rule. If a judgment is rendered in such action by
				which it is determined that the applicant is liable for damages under this rule
				and the applicant has not paid the judgment within ten days of the date the
				judgment became final or if the applicant petitions the Supreme Court of the
				United States to take certiorari jurisdiction over such action and the
				applicant has not paid the judgment within ten days of the date the Supreme
				Court of the United States denies certiorari jurisdiction or within ten days of
				the date the Supreme Court of the United States affirms the judgment, then such
				person may petition the Superior Court of Fulton County for an order directing
				the Secretary of State to reduce such deposit or a portion thereof sufficient
				to pay the judgment to cash or its equivalent and to pay such judgment to the
				extent the judgment may be satisfied with the proceeds of the deposit. If there
				shall remain any residue from the deposit and if at least one year has passed
				since the expiration or revocation of the applicant's registration, the
				Secretary of State shall pay such residue to the applicant, taking his receipt
				for the residue, which shall be filed and recorded with the other papers of the
				case, unless there is an action pending against the applicant (including any
				direct appeal of such action or an appeal based on a petition for certiorari
				jurisdiction), of which the Secretary of State has notice, in a court of
				competent jurisdiction in which it is alleged that the applicant is liable for
				damages under this rule, in which case the Secretary of State shall hold or
				dispose of such residue in accordance with the provisions of this subsection
				relating to the holding or disposing of the entire deposit. If more than one
				final judgment is rendered against the applicant for violation of this rule,
				the judgment creditors shall be paid in full from such deposit or residue
				thereof, to the extent the deposit or residue is sufficient to pay the
				judgments, in the order in which the judgment creditors petitioned the Superior
				Court of Fulton County.
(h)
				Anything in this rule to the contrary notwithstanding, the Secretary of State
				shall comply with any order of a Georgia or United States court of competent
				jurisdiction to turn over any deposit held by him or her pursuant to subsection
				(1)(d) or (1)(e) of this rule or the proceeds from any bond held by him or her
				pursuant to subsection (1)(d) or (1)(e) of this rule to a trustee or receiver
				for the use and sole benefit of persons on whose behalf the Secretary of State
				holds such deposit or proceeds.
(i)
				No merchandise dealer shall be required to maintain insurance described in
				subparagraph (b) or (c) of this rule if insurance otherwise maintained provides
				equivalent coverage.