The Commissioner may assess civil penalties against a trustee for violations including but not limited to:

1. (1) Improper distributions from the improvement care trust fund or the preneed merchandise and services trust fund;
2. (2) Late filing of trustee reports;
3. (3) Filing inaccurate or incomplete trustee reports;

4. (4) Investing trust funds directly or indirectly:

   1. (a) With any officer, director or employee of the cemetery company or anyone related by blood, adoption, or marriage to any individuals included in the above;
   2. (b) With the cemetery company itself;
   3. (c) In any business entity of which a controlling interest is held directly or indirectly by any of the foregoing persons or legal entities;
   4. (d) With any other cemetery company or funeral establishment;
   5. (e) In assets, ventures, funds or investments that are high risk or highly speculative.

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