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

Current through Reg. 50, No. 138; July 16, 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.