Arkansas Code of 1987 (2023)
Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105)
Subtitle 2 - FINANCIAL INSTITUTIONS AND SECURITIES (§§ 23-30-101 — 23-55-1007)
Chapter 40 - ARKANSAS PREPAID FUNERAL BENEFITS LAW (§§ 23-40-101 — 23-40-126)
Section 23-40-106 - Violations - Penalties

• (a)
  • (1) An officer, director, agent, or employee of an organization subject to this chapter who makes, or attempts to make, a contract in violation of this chapter, or refuses to allow an inspection of the organization's records shall be punished by a fine of not less than one thousand dollars ($1,000) and not more than ten thousand dollars ($10,000), or by imprisonment in the county jail for at least six (6) months and not more than twelve (12) months, or by both fine and imprisonment.
  • (2)
    • (A) An officer, director, agent, or employee of an organization is guilty of a Class D felony if the officer, director, agent, or employee:
      • (i) Collects contract proceeds on cash-funded prepaid funeral contracts and fails to deposit the proceeds with a trustee as required under § 23-40-114; or
      • (ii) Collects proceeds on insurance-funded or annuity-funded contracts, or both, and fails to forward the proceeds to the insurance company or the third-party administrator within twenty (20) business days.
    • (B) A person convicted of a violation of § 23-40-114 shall be ordered to pay restitution to persons aggrieved by the violation.
    • (C) Restitution shall be ordered in addition to a fine or imprisonment.

• (b) Each violation of any provision of this chapter shall be deemed a separate offense and prosecuted individually.

• (c) The Criminal Investigation Division shall have jurisdiction to investigate and prosecute any officer, director, agent, or employee of any organization who collects contract proceeds on cash-funded prepaid funeral contracts and fails to deposit such funds with a trustee as required under § 23-40-114.

Amended by Act 2017, No. 283,§ 1, eff. 8/1/2017.

Acts 1985, No. 156, § 13; A.S.A. 1947, § 67-1725; Acts 1999, No. 1249, § 3; 2001, No. 1043, § 1.