1. (1) On or after January 1, 2015, a preneed contract for cemetery merchandise and services must have, at a minimum, the following required disclosures:

   1. (a) A thirty (30) day refund provision in the event of a cancellation. In the event of a cancellation prior to thirty (30) days for contracts funded by trust, letter of credit or surety bond, purchaser shall be entitled to a complete refund of the amount paid. The contract shall further provide that the purchaser is entitled to a refund of all money paid on the contract in the event of a breach of contract by the seller.
   2. (b) A disclosure as to which method of funding the seller is using to fund the preneed contract.
   3. (c) If the seller’s practice is to install vaults or outer burial containers before need, the additional provisions described in Rule 482-3-003-.08.
   4. (d) If merchandise and services are to be provided as complimentary or free of charge, such merchandise and services must be itemized on the preneed contract and noted as “no charge.”
2. (2) Preneed contracts shall be sequentially numbered in a uniform manner. Should pre-printed contracts be used which result in numerical gaps, contracts should be numbered sequentially using an internal numbering system.

Author: Commissioner of Insurance

Statutory Authority: Code of Ala. 1975, §§27-2-17, 27-17A-1 to -57 (2014).

History: New Rule: Filed November 13, 2014; effective January 1, 2015. Filed with LRS November 13, 2014. Rule is not subject to the Alabama Administrative Procedure Act.