STATE OF OKLAHOMA

2nd Session of the 53rd Legislature (2012)

SENATE BILL 997	By:	Ballenger

AS INTRODUCED

An Act relating to prepaid funeral trusts; amending 36 O.S. 2011, Section 6129.1, which relates to financial examinations of prepaid funeral trusts and accounts; specifying funeral service providers in compliance shall not pay for examinations; specifying noncomplying funeral service providers shall pay for examinations; directing the Insurance Department to use fines received to pay for examinations of providers in compliance; and providing an effective date.

BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1.     AMENDATORY     36 O.S. 2011, Section 6129.1, is amended to read as follows:
Section 6129.1.  Annually, on or before the fifteenth day of March, and whenever the Insurance Commissioner deems it to be prudent or necessary, each organization operating one or more prepaid funeral trusts shall have a financial examination of each trust and related prepaid funeral accounts for the preceding calendar year, prepared by a licensed public accountant or certified public accountant and in accordance with procedures promulgated by the Insurance Commissioner's office.  The examination also shall evaluate and report on the compliance of each trust with the provisions of Section Sections 6121 et seq. through 6136.18 of Title 36 of the Oklahoma Statutes this title, relating to prepaid funeral benefits.  An organization operating a prepaid funeral trust or account which is found to be in compliance with the requirements of Sections 6121 through 6136.18 of this title shall not be required to pay for the financial examination.  An organization operating a prepaid funeral trust or account which is found to have violated any of the requirements of Sections 6121 through 6136.18 of this title shall be required to pay for the examination and other penalties as provided in Section 6130 of this title.  The Insurance Department shall use fines received pursuant to Section 6130 of this title to pay for the examination of prepaid funeral services providers found to be in compliance with the requirements of Sections 6121 through 6136.18 of this title.
SECTION 2.  This act shall become effective November 1, 2012.

53-2-1962	ARE	12/7/2011 12:09:00 PM