2013 Kentucky Revised Statutes
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367.934 Preneed payments and increments as trust funds -- Conditions
required for disbursements.
All payments of money made to any person, partnership, association, or
corporation upon any agreement or contract, or any series or combination of
agreements or contracts, but not including the furnishing of cemetery lots or
mausoleums, which has for a purpose the furnishing or performance of funeral
services, or the furnishing or delivery of personal property, merchandise, or
services of any nature in connection with the final disposition of a dead human
body, for future use at a time determinable by the death of the person whose
body is to be disposed of, are held to be trust funds. The person, partnership,
association, or corporation receiving the payments is declared to be the agent
thereof, and shall deposit all payments in a trust account with a bank or trust
company or invest said payments in a savings and loan association or federally
chartered credit union. The trustee shall be the financial institution holding said
funds. All of the interest, dividends, increases, or accretions of whatever nature
earned by the funds deposited in a trust account shall remain with the principal
of such account and become a part thereof, subject to all of the regulations
concerning the principal of said fund herein contained. The agent shall have
the authority at any time to transfer or redesignate the trustee of said funds in
his or her discretion upon notification to the Attorney General. In case of any
transfer, the former trustee shall transfer funds directly to and payable to the
newly designated trustee or its representative.
All payments made to the agent under the agreement, contract, or plan are and
shall remain trust funds with the financial institution until the death of the
person for whose service the funds were paid and until the delivery of all
merchandise and full performance of all services called for by the agreement,
contract, or plan, except where payment is made pursuant to a request for
The funds shall not be paid by the financial institution until a certified statement
is furnished to the financial institution by the agent setting forth that all of the
terms and conditions of the agreement have been fully performed by the
person, association, partnership, firm, or corporation. Any balance remaining in
the fund after payment for the merchandise and services as set forth in the
agreement, contract, or plan shall be paid to the estate of the beneficiary of the
agreement, contract, or plan.
The funds shall not be paid by the financial institution until the agent has
proven the death of the person for whose service the funds were paid by
furnishing the financial institution with a verified or certified copy of a record
verifying the 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.
No provision of KRS 367.932 to 367.974 shall be construed to apply to
contracts for funeral service or merchandise sold as preneed and burial
insurance policies which are regulated by the Department of Insurance of this
Effective:July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 1918, effective July 15, 2010. --
Amended 2006 Ky. Acts ch. 102, sec. 1, effective July 12, 2006. -- Amended
1996 Ky. Acts ch. 275, sec. 1, effective July 15, 1996. -- Repealed, reenacted,
and amended as KRS 367.934, 1984 Ky. Acts ch. 116, sec. 2, effective July 13,
1984. -- Created 1966 Ky. Acts ch. 12, sec. 2.
Formerly codified as KRS 316.320.
CHAPTER 367 - CONSUMER PROTECTION
367.934 Preneed payments and increments as trust funds -- Conditions required for disbursements.
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