There is a newer version of the Kentucky Revised Statutes
2009 Kentucky Revised Statutes
CHAPTER 367 CONSUMER PROTECTION
367.942 Records of licensee -- Examination by Attorney General.
Download pdf(a) A cash receipts journal listing moneys received in chronological order, dates, and amounts received, and identification of the payor or purchaser; (b) A cash disbursement journal containing the same information for moneys disbursed. If a separate bank account is kept exclusively for any such funds,
the checkbook could be used as a cash disbursement journal; (c) A "reconciliation" done at least once every twelve (12) months. The reconciliation shall indicate the beginning balance in the trust account,
payments received during the period, interest earned during the period,
disbursements on either cancellation or the death of the beneficiary, and the
ending balance for the period. The ending balance for each period is
determined as follows: Beginning Balance + Payments received + Interest - Disbursements Ending Balance; (d) Documentation files supporting the reconciliation and containing the preneed burial contract. Each file, consisting of a separate file for each contract, should
include the name and address of the purchaser, the beneficiary, and the
financial institution in which the trust funds were deposited. Passbooks,
certificates, and other evidence of the account with the financial institution
should be kept with the individual files, depending on the safety and security
of the files; and (e) A certified copy of a verification of death, issued by the state registrar of the Vital Statistics Branch or its successor agency as authorized by KRS Chapter
213, or a provisional certificate of death as described in KRS 213.076, upon
the death of each person for whose service funds were paid to the licensee by
the trustee under a preneed burial contract. (2) All sales, trust fund, and accounting records of the agent licensee shall be readily available at the agent's principal place of business in this state at reasonable times
for examination by an authorized representative of the Attorney General's office. (3) The necessary expenses of any examination made pursuant to this section shall be paid by the licensee, but in no case shall the Attorney General or his or her
authorized representatives be paid more than the actual expenses of such
examination not to exceed the lesser of the following amounts: one hundred dollars
($100) per day for each auditor or five dollars ($5) for each agent's sales contract
examined. The agent may pay for this expense using interest moneys which have
accrued on the agent's existing preneed funeral trust fund accounts. Any withdrawal
of interest for this purpose shall be taken as a pro rata share of all of the agent's existing preneed funeral trust fund accounts. The Attorney General shall be advised
in writing by the agent when interest moneys is the source of payment and shall
receive written certification from the financial institution or agent that the
withdrawal was a pro rata share. (4) This section shall apply to examinations of all preneed funeral contracts whether entered into prior to or after July 13, 1984. Effective: July 12, 2006
History: Amended 2006 Ky. Acts ch. 102, sec. 2, effective July 12, 2006. -- Amended 1992 Ky. Acts ch. 305, sec. 2, effective July 14, 1992. -- Created 1984 Ky. Acts
ch. 116, sec. 6, effective July 13, 1984.
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