1. (1) The Commissioner may require audited financial statements or other financial reports performed by an independent certified public accountant, approved by the Commissioner, licensed in the State of Tennessee of any cemetery company or its trust funds when there are:

   1. (a) Deficiencies in any of the trust funds; or
   2. (b) Any violations of T.C.A. Title 46 or the Rules of the Departments of Commerce and if such violation of statute or rule relates to trust funds; or
   3. (c) Any other reasonable cause to believe that the trust funds are in danger of being lost or dissipated.
2. (2) The cost of the audit shall be paid by the cemetery company. The trust fund principal and the income earned from the trust funds shall not be used to pay for audit expenses.

Authority: T.C.A. §§ 46-1-215(d), 46-1-301, and 46-1-306(d)(2). Administrative History: Original rule filed November 2, 2007; effective January 16, 2008.