Notification of Intent to Sell Assets or Cease Doing Business (Seller or Provider)

PURPOSE: This rule outlines the procedures for preneed sellers and preneed providers to notify the board when selling or disposing of all or a majority of its business assets or its stock, or ceasing to do business. (1) Notification of intent to sell assets or cease doing business must be made on the forms provided by the board. (2) As part of the notification, each licensed seller must inform the board of the actions it has taken or will take to ensure that the assets of the seller will be set aside and used to serve outstanding preneed contracts sold by the seller and each licensed provider must inform the board of the actions it has taken or will take to ensure that the provider’s obligations under preneed contracts will be satisfied. (3) If a seller ceases business, the seller shall assign all active preneed contracts to another licensed seller and transfer the funds held either in trust or in joint accounts to that licensed seller. In that assignment, the receiving seller shall agree to assume all obligations under the preneed contracts or in lieu of such complete assumption, the assignment shall set forth the obligations that the new seller is assuming. AUTHORITY: sections 333.111.1, 436.490, and 436.500, RSMo 2016.* This rule originally filed as 4 CSR 120-3.030. Original rule filed Jan. 7, 1983, effective June 11, 1983. Moved to 20 CSR 2120-3.030, effective Aug. 28, 2006. Amended: Filed June 12, 2019, effective Dec. 30, 2019. *Original authority: 333.111.1, RSMo 1965, amended 1981, 1993, 1995; 436.490, RSMo 2009; and 436.500, RSMo 2009.