R9-9B-308. Annual Reports on Trust Accounts for Prearranged Funeral Agreements

A. In compliance with A.R.S. § 32-1391.16, a licensee shall ensure that the following are submitted to the Department on or before May 1 of each calendar year: 1. An annual report for each trust account funded through a prearranged funeral sales agreement, concerning prearranged funeral sales and trust account activities by the funeral establishment, in a Department-provided format, including: a. The ending date of the funeral establishment’s reporting period; b. The name, physical address, and prearranged funeral sales endorsement number of the funeral establishment; c. The name and address of each person owning 10 percent or more of the funeral establishment; d. For each prearranged funeral agreement funded by trust that was sold during the calendar year specified according to subsection (A)(1)(a) that funds the trust account: i. The name and address of the financial institution, ii. The trust account number, iii. The name and address of the individual purchasing the prearranged funeral agreement funded by trust, iv. The date of sale, v. The name of the individual employed by or contracted with the funeral establishment who sold the prearranged funeral, vi. The name of the beneficiary of the prearranged funeral agreement funded by trust, vii. The total contract amount, viii. The initial service fee, ix. The total amount of the initial service fee that has been paid, x. The total amount of monies paid by the purchaser, xi. The total amount of the monies paid that were deposited in the trust account, xii. The total amount of any refunds made to the purchaser; xiii. The total amount of any bank service charges, xiv. The total amount of any other withdrawals made from the trust account, and xv. The balance of the trust account as of December 31 of the calendar year specified according to subsection (A)(1)(a); e. For each prearranged funeral agreement funded by trust that was sold before the calendar year specified according to subsection (A)(1)(a) that funds the trust account: i. The name and address of the financial institution, ii. The trust account number, iii. The name of the individual purchasing the prearranged funeral agreement funded by trust and the date sold, iv. The total contract amount, v. The initial service fee, vi. The total amount of the initial service fee that has been paid, vii. The total amount of monies paid by the purchaser during the calendar year specified according to subsection (A)(1)(a), viii. The total amount of monies paid by the purchaser, ix. The total amount of the monies paid that were deposited in the trust account, x. The total amount of any refunds made to the purchaser, xi. The amount of an annual service fee, xii. The amount of taxes paid, xiii. The total amount of any bank service charges, xiv. The total amount of any other withdrawals made from the trust account, and xv. The balance of the trust account as of December 31 of the calendar year specified according to subsection (A)(1)(a); f. A summary of trust account transactions for the calendar year specified according to subsection (A)(1)(a) for each financial institution and each trust account held by the financial institution, including: i. The total amount of trust fund monies, including accrued interest, on December 31 of the calendar year immediately preceding the calendar year specified according to subsection (A)(1)(a); ii. The total amount of trust monies received and deposited into a trust account during the calendar year specified according to subsection (A)(1)(a); iii. The amount withdrawn from a trust fund during the calendar year specified according to subsection (A)(1)(a) for funeral arrangements, annual service fees, tax payments, financial institution service charges, refunds to purchasers, or other withdrawals; iv. The total amount withdrawn during the calendar year specified according to subsection (A)(1)(a); v. The total interest paid into the trust accounts during the calendar year specified according to subsection (A)(1)(a); vi. The total amount of trust fund monies, including accrued interest, on December 31 of the calendar year specified according to subsection (A)(1)(a); and vii. The total amount of trust monies received, not including initial service fees, and not deposited into a trust account during the calendar year specified according to subsection (A)(1)(a); g. For other withdrawals specified according to subsection (A)(1)(d)(xiii), (e)(xiv), or (f)(iii), a detailed explanation of the reason for each withdrawal; h. The name and address of each individual employed by or contracted with the funeral establishment to offer prearranged funerals funded by trust; and i. An affidavit, signed and dated by the licensee and responsible funeral director, that the funeral establishment has complied with the requirements in A.R.S. Title 32, Chapter 12, Article 5, and this Subchapter; 2. A copy of a current surety bond as required in R9-9B- 307(B); 3. Documentation from each financial institution for each trust account held by the financial institution, showing the year-end balance of the trust account; and 4. The fee in R9-9B-103(D)(4). B. If an annual report in subsection (A)(1) and copy of a current surety bond in subsection (A)(2) are submitted to the Department after May 1 of a calendar year, a licensee shall ensure that the fee in R9-9B-103(D)(5) is submitted to the Department. C. If an annual report in subsection (A)(1) that was submitted to the Department before May 1 of a calendar year is still incomplete as of May 1 of the calendar year, a licensee shall ensure that the difference between the fee in R9-9B-103(D)(4) and the fee in R9-9B-103(D)(5) is submitted to the Department.