(a)
- (1) All burial association memberships written on or after July 1, 1987, shall be reserved based on the actuarial table approved by the State Board of Embalmers, Funeral Directors, Cemeteries, and Burial Services.
- (2) Collections and interest derived from Acts 1987, No. 443, new business must not be used in any manner to pay claims on old business.
- (3) The excess revenue or mortuary fund derived from old business shall likewise not be used to pay claims on Acts 1987, No. 443, new business.
- (b) Those associations with revenue insufficient to pay old business claims are required to conduct a fifth assessment each year, pay the contract funeral home a maximum of fifty percent (50%) of face amount of each certificate and take no expenses until the revenue reaches the point that no claims are written off and the board determines that the extra assessment, fifty-percent settlement, and forfeiture of expenses are no longer necessary.