Requirements related to Transfer & Surrender Application may be found in Preneed Regulation 482-3-003.
Transfer of Certificate of Authority
A transaction which has the effect of transferring a certificate of authority or branch registration must be authorized by the Board prior to the closing of the transaction. Without limitation, authorization is required for the sale of a certificate of authority or branch registration, the sale of a certificate holder’s business or assets to the extent the transaction includes transfer of the certificate of authority or branch registration, and sale of all or a controlling interest in any business entity certificate holder or branch registrant.
Prior to the closing of the transaction which will give rise to a transfer, the certificate holder shall give notice of the proposed transaction on the form (see below) prescribed by the Board and provide the following:
- A copy of any fully signed letter of intent with any exhibits, attachments, or schedules referenced in the letter of intent.
- A copy of the fully signed purchase agreement or other form of contract which describes the terms of the transaction which will result in a transfer with any exhibits, attachments, or schedules referenced in the agreement or contract. Any such purchase agreement or contract must be conditioned upon approval of the Board to the transfer and must specifically address the parties’ agreements concerning performance of preneed contracts previously sold, but unperformed, by the certificate holder. If the proposed transaction will result in a change of ownership of the certificate holder, the agreement or contract must provide that preneed contract holders will be notified in writing of the change of ownership within ninety (90) days after the transfer is complete.
- If not otherwise addressed by the purchase agreement or contract, evidence acceptable to the Board that all required amounts have been deposited in trust and that the certificate holder’s interest in each trust will be conveyed to the purchaser or transferee as part of the transaction without a diminution or pay out of trust assets or gain on such assets to the transferring certificate holder or another as part of the transaction.
- Any other documentation requested by the Department of the seller or purchaser in order for the Board to make a determination on the proposed transfer.
For sale or transfer of endowment care cemeteries, all payments required to be paid to the endowment care trust fund must be paid to date. The endowment care trust must continue to hold the trust funds after the sale or transfer. No funds held by the endowment care trust may be withdrawn as a result of a sale or transfer.
Surrender of Certificate of Authority and Branch Application
Surrender of a Certificate of Authority must be accepted by the Board to be effective. The Certificate Holder shall give prior notice of the surrender in a form (see below) prescribed by the Board and provide the following to the Board:
- Copies of the Certificate Holder’s existing trust agreements.
- A sample copy of each form of preneed contract sold.
- The Certificate Holder’s report of the status of all outstanding preneed contracts sold current to the proposed time of the surrender.
- Trustee report(s) of the status of all trust accounts current to the time of submission.
- The Certificate of Authority and any Branch Registrations
Upon application, the Certificate Holder shall immediately collect and deposit in trust that portion of funds paid toward preneed contracts sold before inactivity which are to be trusted in accordance with the Act, including, where applicable, contributions to a cemetery endowment care fund. All existing trusts and, if applicable, any cemetery endowment care fund shall be held intact and in trust, and shall not be disbursed except as allowable under the Preneed Funeral and Cemetery Act of 2023.
A Surrender shall not be authorized in the following events:
- Findings or violations identified in the immediately preceding examination remain have not been resolved to the Board’s reasonable satisfaction.
- Any previously-imposed fines, assessments, or examination expenses remain unpaid in whole or in part.