(a)

1. (1) Each year following the annual report, any association having surplus funds from its new business, as that term is defined in this part, may apply to the State Board of Embalmers, Funeral Directors, Cemeteries, and Burial Services for authorization to transfer all or part of those surplus funds to its old business account if that old business, according to the association’s annual report, has funds insufficient to meet the reserve requirements for its membership calculated according to the reserve table contained in 23 CAR § 331-143.
2. (2) Upon receipt of such a request, the board shall approve or disapprove the same within sixty (60) days, taking into consideration other remedial measures, if any, that have been invoked by the board.

(b) “Surplus funds”, as that term is used in this part, means those new business funds held by an association, as reflected by its annual report, in excess of:

1. (1) The association’s new business reserve requirements as determined pursuant to 23 CAR § 331-143;
2. (2) The association’s new business claims that have been filed with or reported to the association prior to the annual report;
3. (3) The association’s incurred but not reported claims, as determined by that association’s actual experience over the preceding three (3) years; and
4. (4) The association’s accounts, bills, and expenses that are unpaid as of the annual report.