DIVISION 930
PREARRANGEMENT AND PRECONSTRUCTION PLANS
441-930-0010
Definitions
In addition to the definitions in ORS 97.010 and 97.923, the following definitions apply to OAR 441-930-0010 to 441-930-0360:
(1) "Applicant" means a person applying to the Director for an Order of Certification concerning prearrangement plans or for an Order of Registration to serve as a master trustee.
(2) "Associated person" means an individual, including a salesperson defined in ORS 97.923, working on behalf of a certified provider or master trustee.
(3) "Civil action" means an action filed in a court of law or an action in a formal process of alternative dispute resolution.
(4) "Funeral Plan Trust Account" means an account in a depository, as defined in ORS 97.923, established and administered by a certified provider, into which is deposited funds received from the sale of prearrangement plans.
(5) "Market" means to offer, to contract for sale, to sell or advertise, in the state of Oregon, or to an Oregon resident, merchandise or services under a prearrangement plan.
(6) "Prearrangement Plan" means "Preconstruction Sales" or "Preconstruction Sales Contract" or "Prearrangement Sales" or "Prearrangement Sales Contract" as those terms are defined in ORS 97.923.
(7) "Registrant" means a master trustee holding an Order of Registration, issued by the Director.
(8) "Trust Agreement" means any agreement governing a funeral trust fund established to receive the proceeds of a prearrangement plan and administered by a registered master trustee.
(9) "Unconscionable tactics" include, but are not limited to, actions by which a person:
(a) Knowingly takes advantage of a customer's physical infirmity, ignorance, illiteracy or inability to understand the language of the agreement; or
(b) Knowingly permits a customer to enter into a transaction from which the customer will derive no material benefit.
Stat. Auth.: ORS 97.933, 97.935 & 97.945
Stats. Implemented: ORS 97.933, 97.935 & 97.945
Hist.: DO 1-2002, f. & cert. ef. 1-10-02; Renumbered from
440-300-0010; FCS 3-2004, f. & cert. ef. 9-30-04; FCS 2-2006, f.
& cert. ef. 2-22-06; FCS 5-2007, f. 10-11-07, cert. ef. 1-1-08
441-930-0030
Applications for Registration of Master Trustees
(1) Each person desiring to register as master trustee shall apply by submitting a written application with the Director.
(2) The application must contain the following on or with a form prescribed by the Director:
(a) Information concerning the applicant's identity and business address(es);
(b) A list of all officers, directors, and owners of 10% or more of the business;
(c) Personal background and business, professional or work history of all persons identified in subsection (2)(b) of this rule;
(d) Proof of registration or good standing of the applicant's business name in the state or country under which it is organized;
(e) The depositories the applicant intends to use for funds received under the appointment from the certified provider;
(f) Financial statements including:
(A) A copy of the applicant's most recent audited financial statement, including balance sheet, statement of income or loss, statement of changes in shareholder equity and statement of changes in financial position. All financial statements must be prepared by an independent certified public accountant in accordance with generally accepted accounting principles;
(B) If the audited financial statement is more than six months old, an internally prepared statement for the most recent month end; and
(g) A registration fee as set in OAR 441-930-0270.
(3) The Director may conduct a background check of any person applying for registration. The background check may include information solicited from the Oregon State Police.
(4) Unless there are grounds for denying the application pursuant to OAR 441-930-0310, the Director shall issue an Order of Registration.
(5) The Order of Registration is a continuing registration and remains in effect until the registration is surrendered by the registrant or revoked or suspended by the Director as provided in OAR 441-930-0310.
Stat. Auth.: ORS 97.935
Stats. Implemented: ORS 97.935
Hist.: DO 1-2002, f. & cert. ef. 1-10-02; Renumbered from
440-300-0030; FCS 3-2004, f. & cert. ef. 9-30-04; FCS 7-2004, f.
12-14-04, cert. ef. 1-1-05; FCS 2-2006, f. & cert. ef.
2-22-06
441-930-0070
Annual Examination of Master Trustee
(1) Each master trustee that is or should be registered may be subject to an annual examination by the Director. The Director may, at the Director's discretion, conduct an examination at the office of the master trustee or at the office of the Director. The examination will be of the condition and resources of the master trustee, including:
(a) A review of the minutes of the annual meeting of owners and any special meeting;
(b) A review of all board or management meetings;
(c) Operating policies and procedures;
(d) Security of funds;
(e) Investment vehicle;
(f) Receipt and dispersal of funds;
(g) Investment and banking accounts;
(h) Audit reports;
(i) Regulatory audit reports.
(2) A master trustee shall pay to the Director the fees and costs of examination described in OAR 441-930-0270.
(3) At the discretion of the Director, a master trustee located outside Oregon may make the books and records available for examination in Oregon.
Stat. Auth.: ORS 97.935
Stats. Implemented: ORS 97.935
Hist.: DO 1-2002, f. & cert. ef. 1-10-02; Renumbered from
440-300-0070; FCS 3-2004, f. & cert. ef. 9-30-04; FCS 2-2006, f.
& cert. ef. 2-22-06
441-930-0080
Master Trustee Rules of Conduct
(1) A master trustee is a fiduciary and has a duty to act solely for the benefit of purchasers of prearrangement sales contracts.
(2) The fees to be charged shall be described in a written agreement between the master trustee and each certified provider that has appointed the master trustee.
(3) A master trustee may delegate administration, record keeping, custody, investment or management functions that a prudent trustee of comparable skills could properly delegate under the circumstances. The master trustee may not delegate, and shall exercise reasonable care, skill and caution in:
(a) Selecting an agent;
(b) Establishing the scope and terms of the delegation, consistent with the purposes and terms of the trust; and
(c) Periodically reviewing the agent's actions in order to monitor and ensure the agent's performance and compliance with the terms of the delegation.
(4) A master trustee shall invest and manage trust assets as a prudent investor would. A master trustee that complies with ORS 130.755 satisfies this requirement.
(5) In investing and managing trust assets, regardless of whether those functions have been delegated, a master trustee may only incur fees and expenses that are appropriate and reasonable in relation to the assets, the purposes of the trust and the skills of the master trustee, not to exceed the maximum specified in ORS 97.943. Fees and expenses that may be incurred include:
(a) Accounting fees;
(b) Fiduciary income taxes;
(c) Depository fees;
(d) Investment manager fees;
(e) Record keeping and administration fees; and
(f) Master trustee fees.
Stat. Auth.: ORS 97.935
Stats. Implemented: ORS 97.935
Hist.: FCS 2-2006, f. & cert. ef. 2-22-06; FCS 5-2007, f.
10-11-07, cert. ef. 1-1-08
441-930-0210
Application for Order of Certification
(1) Each entity desiring to obtain an Order of Certification shall apply by submitting a written application with the Director.
(2) An application must contain the following on or with a form prescribed by the Director:
(a) A list of all officers, directors, and owners of 10% or more of the business;
(b) Information concerning the applicant's identity and business address(es);
(c) If the applicant is an individual or sole proprietorship, the applicant's social security number. Provision of this number is mandatory and failure to provide the applicant's social security number shall be considered grounds for denying certification to the applicant.
(d) The business, professional or work history of all persons identified in subsection (2)(a) of this rule;
(e) Proof of registration or good standing of the applicant's business name in the state or country under which it is organized;
(f) The depositories the applicant intends to use for funds received from the sale of the prearrangement plans;
(g) For providers who have not appointed a master trustee, financial statements including:
(A) A copy of the applicant's most recent audited financial statement, including balance sheet, statement of income or loss, statement of changes in shareholder equity and statement of changes in financial position. All financial statements must be prepared by an independent certified public accountant in accordance with generally accepted accounting principles;
(B) If the audited financial statement is more than six months old, an internally prepared statement for the most recent month end;
(h) A list of prearrangement plans to which the applicant was a party at the date of application; and
(i) A certification fee as set in OAR 441-930-0270.
(3) The Director may conduct a background check of any person applying for certification. The background check may include information solicited from Oregon State Police.
(4) Unless there are grounds for denying the application pursuant to OAR 441-930-0310, the Director shall issue an Order of Certification.
(5) The certificate issued to a provider is continuing and remains in effect until surrendered by the provider or revoked or suspended by the Director, or the provider sells or otherwise transfers ownership of the provider's funeral or cemetery establishment.
Stat. Auth.: ORS 97.933
Stats. Implemented: ORS 97.933
Hist.: DO 1-2002, f. & cert. ef. 1-10-02; DOC 2-2002(Temp) f.
& cert. ef. 2-12-02 thru 8-1-02; DO 3-2002, f. & cert. ef.
5-23-02; Renumbered from 440-300-0210; FCS 3-2004, f. & cert. ef.
9-30-04; FCS 7-2004, f. 12-14-04, cert. ef. 1-1-05; FCS 2-2006, f.
& cert. ef. 2-22-06; FCS 5-2007, f. 10-11-07, cert. ef. 1-1-08
441-930-0220
Renewal Procedure
Submission of the annual report pursuant to OAR 441-930-0250 and annual report fees pursuant to OAR 441-930-0270 shall constitute renewal of the application for registration or certification.
Stat. Auth.: ORS 97.933 & 97.935
Stats. Implemented: ORS 97.933 & 97.935
Hist.: DO 1-2002, f. & cert. ef. 1-10-02; Renumbered from
440-300-0220; FCS 3-2004, f. & cert. ef. 9-30-04; FCS 2-2006, f.
& cert. ef. 2-22-06
441-930-0230
Material Changes, Amendments, and Notice of Civil and Criminal Actions
(1) A master trustee or certified provider must file an amendment to its application with the Director if there is a material change to any information on the original application including:
(a) Bankruptcy;
(b) Civil or criminal actions described on the application;
(c) Disciplinary disclosure answers on the application;
(d) Change in additional affiliated business entity name;
(e) Change in control or ownership;
(f) Change in form of organization;
(g) Change of address;
(h) Change in scope of business; or
(i) Change in any depository used by the master trustee or certified provider.
(2) The master trustee or certified provider must file amendments with the Director within 30 days of the occurrence of the material change. If a completed amendment cannot be filed within 30 days, the master trustee or certified provider shall file with the Director within the 30 day limit a written notice containing available information, the reasons a complete amendment cannot be timely filed and a specific date on which the completed amendment will be filed.
(3) Amendments to the application shall be made on a form acceptable to the Director.
Stat. Auth.: ORS 97.933 & 97.935
Stats. Implemented: ORS 97.933 & 97.935
Hist.: DO 1-2002, f. & cert. ef. 1-10-02; Renumbered from
440-300-0230; FCS 3-2004, f. & cert. ef. 9-30-04; FCS 2-2006, f.
& cert. ef. 2-22-06
441-930-0240
When Certification Application Deemed Abandoned
(1) For purposes of this rule, the term "application" includes all documents, information and fees prescribed for the registration of master trustees or certification of providers as set forth in ORS 97.923 to 97.949, OAR 441-930-0030, 441-930-0210 and 441-930-0270.
(2) An application shall be deemed deficient when:
(a) Insufficient fees have been paid and the Director has notified the applicant that fees are insufficient;
(b) Documents required to be submitted to the Director by OAR 441-930-0030 or 441-930-0210 have not been submitted by the applicant; or
(c) Information requested by the Director has not been submitted by the applicant.
(3) An application shall be deemed abandoned if:
(a) The application has been on file for a minimum of 180 days;
(b) The application is deficient; and
(c) The applicant has failed to respond to the Director's written notice of warning of abandonment within 30 calendar days of the date of warning.
(4) The Director shall refund registration or certification fees received for abandoned applications.
(5) An applicant whose application has been abandoned may reapply by submitting a new application, including fees.
Stat. Auth.: ORS 97.933
Stats. Implemented: ORS 97.933
Hist.: DO 1-2002, f. & cert. ef. 1-10-02; Renumbered from
440-300-0240; FCS 3-2004, f. & cert. ef. 9-30-04; FCS 2-2006, f.
& cert. ef. 2-22-06; FCS 5-2007, f. 10-11-07, cert. ef. 1-1-08
441-930-0250
Annual Report Required
(1) Each master trustee and certified provider is responsible for and shall file annually with the Director by April 1 of each year a report on or with forms provided by the Director. The report shall cover the preceding calendar year and shall include:
(a) Beginning balance in the trust account;
(b) The amount of deposits to the trust account;
(c) The amount of income on the trust account;
(d) The amounts of withdrawals from principal of the trust account;
(e) The amount of expenses withdrawn from income for master trustee, accounting, record keeping and administration, depository and investment fees, not to exceed the maximum specified in ORS 97.943;
(f) The amount of any taxes paid for the benefit of beneficiaries;
(g) The amount of recognized and unrecognized gains and losses;
(h) The balance of the trust account as of December 31;
(i) For master trustees, and certified providers who have not appointed a master trustee, a copy of the registrant's or provider's most recent audited annual financial statement, including a balance sheet, statement of income or loss, statement of changes in shareholder equity and statement of changes in financial position. All financial statements must be prepared by an independent certified public accountant in accordance with generally accepted accounting principles; and
(j) For providers that have sold and constructively delivered funeral merchandise, cemetery merchandise, or a combination, an inventory of the merchandise prepared by the provider containing the details specified in ORS 97.933.
(2) Persons who meet the following conditions shall have the option of filing a short form annual report:
(a) The person has ceased marketing prearrangement plans and is no longer certified to market prearrangement plans; and
(b) The prearrangement contracts for which the person is obligated number less than 20 or have a cumulative value of less than $25,000.
(3) A certified provider that discontinues the sale of prearrangement plans, but has outstanding contracts, must continue to submit a short form annual report until all of the contracts are fully discharged.
(4) The short form annual report shall contain the following information:
(a) An attestation by the person reporting that the person no longer holds an Order of Certification to market prearrangement plans and that prearrangement plans for which that person is obligated at the annual report date number less than 20 or have accumulative value of less than $25,000; and
(b) A list of the prearrangement contracts remaining on deposit in trust funds, their balance as of December 31, and the financial institution or master trustee at which they are deposited.
Stat. Auth.: ORS 97.933
Stats. Implemented: ORS 97.933
Hist.: DO 1-2002, f. & cert. ef. 1-10-02; DOC 2-2002(Temp) f.
& cert. ef. 2-12-02 thru 8-1-02; DO 3-2002, f. & cert. ef.
5-23-02; Renumbered from 440-300-0250; FCS 3-2004, f. & cert. ef.
9-30-04; FCS 2-2006, f. & cert. ef. 2-22-06; FCS 5-2007, f.
10-11-07, cert. ef. 1-1-08
441-930-0260
Examination of Certified Providers
(1) Each provider that is or should be certified is subject to an examination by the Director. The Director may conduct an examination of the condition and resources, including a review of the sales contracts used by the certified provider, to determine whether the provider is complying with requirements of ORS 97.923 to 97.949, the laws of this state and the rules of the Director.
(2) A provider shall pay to the Director all fees and costs of an examination pursuant to the provisions of OAR 441-930-0270.
(3) Upon the motion of the Director or upon receipt of a complaint by a customer of the provider, the Director may examine the provider with respect to any violation. In lieu of an annual on-site examination, the Director may accept a report prepared by an independent accounting firm. Reports so accepted are considered for all purposes as an official report of the Director.
(4) The Director may examine a record relating to a prearrangement plan at any place and in any manner the Director considers necessary to protect the interests of the purchasers or beneficiaries.
(5) Certified providers who maintain books and records outside the state of Oregon may, at the discretion of the Director, produce the records in Oregon for examination.
Stat. Auth.: ORS 97.933
Stats. Implemented: ORS 97.947
Hist.: DO 1-2002, f. & cert. ef. 1-10-02; Renumbered from
440-300-0260; FCS 3-2004, f. & cert. ef. 9-30-04; FCS 2-2006, f.
& cert. ef. 2-22-06
441-930-0270
Fees Assessed to Certified Providers and Registered Master Trustees
The Director assesses the following fees against each registered master trustee, certified provider, or applicant:
(1) A registration or certification fee -- $335.
(2) Annual Report Fee -- $335 per master trustee, provider, cemetery or crematorium location. For purposes of the annual report fee, each branch location of a provider's funeral establishment is a separate establishment and each location of a cemetery or crematorium is a separate location.
(3) Short form Annual Report Fee -- $10.
(4) Exam Fees -- $75 per hour for each examiner, plus costs of an examination.
(5) If the books and records are located outside Oregon, the certified provider or master trustee must pay travel and per diem expenses.
Stat. Auth.:
ORS 97.933 & 97.935
Stats.
Implemented: ORS 97.933 & 97.935
Hist.:
DO 1-2002, f. & cert. ef. 1-10-02; Renumbered from 440-300-0270; FCS 3-2004,
f. & cert. ef. 9-30-04; FCS 7-2004, f. 12-14-04, cert. ef. 1-1-05; FCS 3-2005,
f. & cert. ef. 9-6-05; FCS 2-2006, f. & cert. ef. 2-22-06; FCS 8-2008, f.
& cert. ef 8-28-08
441-930-0280
Supervision of Associated Persons by Certified Providers
(1) Every associated person of the certified provider shall be subject to the supervision of a supervisor designated by the certified provider. The supervisor may be a partner, officer or office manager or person occupying a similar position of management and control.
(2) Every certified provider shall establish, maintain and enforce written procedures, a copy of which shall be kept in the business office, setting forth the procedures adopted by the certified provider to comply with the requirements of ORS 97.923 to 97.949 and these rules.
Stat. Auth.: ORS 97.933
Stats. Implemented: ORS 97.933
Hist.: DO 1-2002, f. & cert. ef. 1-10-02; Renumbered from
440-300-0280; FCS 3-2004, f. & cert. ef. 9-30-04; FCS 2-2006, f.
& cert. ef. 2-22-06
441-930-0290
Unprofessional Conduct
A person who engages in the following conduct is subject to probation, suspension, revocation or denial of a certification or registration and assessment of a civil penalty pursuant to ORS 97.948 and OAR 441-930-0310:
(1) Furnishing false or misleading information to the Director in connection with:
(a) Obtaining, renewing, reinstating, or maintaining certification or registration;
(b) The filing of an annual report; or
(c) An investigation;
(2) Failing to furnish accurate and understandable price information to consumers;
(3) Employing any unconscionable tactic in connection with the offer or sale of a prearrangement plan;
(4) Failing to make and verify trust deposits in the amounts and within the time periods specified in ORS 97.941;
(5) Withdrawing principal or income of a trust account in excess of what is permitted pursuant to ORS 97.943;
(6) Failing to comply with the annual reporting requirements as required by ORS 97.933 or these rules;
(7) Failing to provide the goods and services agreed to in a sales contract;
(8) Using trust funds for non-trust purposes;
(9) Failing to release trust funds to the rightful payee within 30 days of the date of request for release; or
(10) Failing to comply with any other provision of ORS 97.923 to 97.949, or these rules.
Stat. Auth.: ORS 97.933 & 97.935
Stats. Implemented: ORS 97.933 & 97.935
Hist.: DO 1-2002, f. & cert. ef. 1-10-02; Renumbered from
440-300-0290; FCS 3-2004, f. & cert. ef. 9-30-04; FCS 2-2006, f.
& cert. ef. 2-22-06
441-930-0300
Notice of Complaint
(1) Each certified provider and each master trustee who has filed a complaint against any of its partners, officers, or directors, or, associated persons located in Oregon, with any law enforcement agency, any other regulatory agency with jurisdiction over prearrangement plans, or any bonding company regarding any loss arising from alleged acts of such person, shall send a copy of the complaint to the Director within ten calendar days following its filing with the other agency or bonding company.
(2) The certified provider or master trustee shall notify the Director within ten calendar days of learning of any action initiated by a law enforcement agency or regulatory agency against any of its partners, officers, or directors, or associated persons located in Oregon on the basis of something other than a complaint from the certified provider or master trustee.
(3) The certified provider or master trustee shall file with the Director a copy of any finding, censure, fine, suspension, or expulsion made as a result of an action by any law enforcement agency or other regulatory agency within ten calendar days following receipt of the document.
Stat. Auth.: ORS 97.933 & 97.935
Stats. Implemented: ORS 97.933 & 97.935
Hist.: DO 1-2002, f. & cert. ef. 1-10-02; Renumbered from
440-300-0300; FCS 3-2004, f. & cert. ef. 9-30-04; FCS 2-2006, f.
& cert. ef. 2-22-06
441-930-0310
Revocation, Suspension and Denial of Certificate or Registration
The Director may impose a civil penalty or probation, or revoke, suspend or deny an Order of Certification of a certified provider or an Order of Registration of a master trustee when one or more of the following conditions exist:
(1) The certified provider's license under ORS 692.160 expires or is suspended or revoked by the State Mortuary and Cemetery Board;
(2) The certified provider or master trustee fails to submit an annual report required by ORS 97.933;
(3) The certified provider or master trustee fails to submit the annual report fee required by OAR 441-930-0270;
(4) The certified provider or master trustee fails to maintain or denies the Director access to the financial records and supporting documents necessary to examine the provider's or registrant's annual report;
(5) The certified provider or master trustee has filed a materially false or misleading report with the Director;
(6) The certified provider fails to deposit prearrangement plan receipts within five business days as required by ORS 97.941;
(7) The certified provider or master trustee fails to account to interested persons for monies received;
(8) The certified provider or master trustee has willfully or repeatedly violated or failed to comply with any provision of ORS 97.923 to 97.949, or OAR 441-930-0010 through 441-930-0360;
(9) The certified provider or master trustee is permanently or temporarily enjoined by a court of competent jurisdiction from engaging in or continuing any conduct or practice involving any aspect of the business of a certified provider or master trustee, respectively; or
(10) The certified provider or master trustee is the subject of disciplinary action by another state or government agency provided the activity subject to discipline would constitute a violation of Oregon law or administrative rules.
Stat. Auth.: ORS 97.933 & 97.935
Stats. Implemented: ORS 97.948
Hist.: DO 1-2002, f. & cert. ef. 1-10-02; Renumbered from
440-300-0310; FCS 3-2004, f. & cert. ef. 9-30-04; FCS 2-2006, f.
& cert. ef. 2-22-06
441-930-0320
Notice Requirements
(1) The Director shall provide written notice to the provider, master trustee, or applicant and to the State Mortuary and Cemetery Board of the Director's intent to impose discipline pursuant to ORS 97.948, Section 23 of Chapter 661, 2007 Oregon Laws, or deny an application.
(2) The Director shall provide written notice of the Director's Final Order to impose discipline pursuant to ORS 97.948, Section 23 of Chapter 661, 2007 Oregon Laws, or deny an application:
(a) Concerning a certified provider or certified provider applicant, to each depository or master trustee known by the Director to hold prearrangement plan trust accounts for which the certified provider or applicant is named; or
(b) Concerning a master trustee or master trustee applicant, to each certified provider known by the Director to have deposited trust funds with the master trustee or master trustee applicant.
(3) The notice required in sections 1 and 2 of this rule shall state:
(a) The reasons for the action;
(b) The effective date of the action; and
(c) For notice described in section (1) a statement of the right to request a hearing under ORS Chapter 183.
Stat. Auth.: ORS 97.933 & 97.935
Stats. Implemented: ORS 97.948
Hist.: DO 1-2002, f. & cert. ef. 1-10-02; Renumbered from 440-300-0320; FCS 3-2004, f. & cert. ef. 9-30-04; FCS 2-2006, f. & cert. ef. 2-22-06; FCS 5-2007, f. 10-11-07, cert. ef. 1-1-08
441-930-0330
Records to be Retained; Retention
(1) Each certified provider and master trustee shall maintain records to document the balances and transactions included in its annual report filed pursuant to OAR 441-930-0250 and shall retain these records for examination by the Director. Each certified provider and master trustee shall make, keep and preserve the following books, accounts and other records for a period of three years. The records required to be maintained include, but are not limited to:
(a) Workpapers documenting preparation of the annual report;
(b) General ledger or subsidiary ledger account records relating to prearrangement plans;
(c) Receipts register;
(d) Sales registers evidencing delivery of merchandise and/or services;
(e) Workpapers documenting distribution of interest income to individual trusts in a common trust account;
(f) Prearrangement contract files, trust agreement files, and other supporting documentation related to prearrangement transactions;
(g) Bank statements; and
(h) Statements from other financial institutions.
(2) Books, accounts, and other records required to be maintained under section (1) of this rule may be maintained:
(a) In a photographic, electronic and other similar form; or
(b) At a location outside Oregon, so long as the books, accounts and other records are made accessible to the Director.
Stat. Auth.: ORS 97.933 & 97.935
Stats. Implemented: ORS 97.947
Hist.: DO 1-2002, f. & cert. ef. 1-10-02; Renumbered from
440-300-0330; FCS 3-2004, f. & cert. ef. 9-30-04; FCS 2-2006, f.
& cert. ef. 2-22-06
441-930-0340
Examination Report
Upon completion of an examination conducted pursuant to OAR 441-930-0070 or 441-930-0260 the Director shall issue a written report to the master trustee or certified provider indicating the examination procedures applied and the examination findings.
Stat. Auth.: ORS 97.933 & 97.935
Stats. Implemented: ORS 97.947
Hist.: DO 1-2002, f. & cert. ef. 1-10-02; Renumbered from
440-300-0340; FCS 3-2004, f. & cert. ef. 9-30-04; FCS 2-2006, f.
& cert. ef. 2-22-06
441-930-0350
Funeral and Cemetery Consumer Protection Trust Fund
(1) The Director shall order restitution from the Funeral and Cemetery Consumer Protection Trust Fund when the following conditions are met:
(a) A claim for restitution is submitted to the Director on forms supplied by the Director accompanied by:
(A) A copy of the prearrangement contract;
(B) Copies of canceled checks or payment receipts demonstrating payment;
(C) Correspondence with the provider concerning attempts to obtain repayment; and
(D) Any other information the claimant believes may be helpful to document the claim.
(b) The loss claimed was incurred on a pre-arrangement plan entered into after September 27, 1987;
(c) The Director has reviewed the claim form and accompanying documentation and determined that a loss was incurred by the claimant on a prearrangement plan and that this loss is uncollectible from the seller of the plan;
(d) The claim for restitution does not exceed the sales price of the prearrangement plan, which is the subject of the claim plus interest at the statutory rate; and
(e) Sufficient funds are available in the Funeral and Cemetery Consumer Protection Trust Fund to pay the claim.
(2) The Director shall provide written notice of its intent to order restitution or not to order restitution on a claim to the maker of the claim and to the individual or firm that is the subject of the claim.
(3) The notice shall state the reasons for the action, the effective date of the action, and if restitution is denied a statement of the claimant's right to request a hearing under ORS Chapter 183.
Stat. Auth.: ORS 97.945
Stats. Implemented: ORS 97.945
Hist.: DO 1-2002, f. & cert. ef. 1-10-02; Renumbered from
440-300-0350; FCS 3-2004, f. & cert. ef. 9-30-04; FCS 2-2006, f.
& cert. ef. 2-22-06
441-930-0360
Additional Surety Bond Requirements for Endowment Care Cemeteries
(1) An individual or firm electing to file a surety bond or letter of credit to meet one of the requirements of ORS 97.929(1)(c)(C) regarding deposits of funds received from agreements to sell or sales of burial vaults or markers for installation in an endowment care cemetery and for sale of crypts or niches not in existence at the time of the sale, shall submit a bond or letter of credit in the amount of $10,000.
(2) Upon notification from the surety of notice of intent to cancel the surety bond or from a financial institution of notice of intent to withdraw a letter of credit, the Director shall send written notice to the endowment care cemetery. This notice shall be sent by certified mail within three business days of receipt of notification by the Director from the surety. Failure to send the notice within three business days will not preclude the endowment care cemetery from being subject to the provisions of ORS 97.923 to 97.949 and 692.180.
(3) A bond or letter of credit that commences no later than the cancellation date of the previous bond or letter of credit must be received by the Director no later than 5:00 pm Pacific Time on the day the bond is canceled or the letter of credit withdrawn.
Stat. Auth.: ORS 97.933
Stats. Implemented: ORS 97.929
Hist.: DO 1-2002, f. & cert. ef. 1-10-02; Renumbered from
440-300-0360; FCS 3-2004, f. & cert. ef. 9-30-04; FCS 2-2006, f.
& cert. ef. 2-22-06
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