USA Statutes : nevada
Title : Title 57 - INSURANCE
Chapter : CHAPTER 689 - FUNERAL AND BURIAL SERVICES
As used in this chapter, unless the
context otherwise requires, the words and terms defined in NRS 689.035
to 689.145 , inclusive, have the meanings ascribed to them
in those sections.
(Added to NRS by 1971, 1393; A 1987, 1260; 1991, 2203)
“Agent” means an individual
authorized by a seller to offer, sell or solicit the purchase of a
prepaid contract on behalf of the seller.
(Added to NRS by 1971, 1393)
“Buyer” means the purchaser of a
prepaid contract.
(Added to NRS by 1971, 1393)
“Net purchase price”
means the purchase price, including interest earned on the trust funds
attributable to the buyer, remaining after deduction of the sales
commission.
(Added to NRS by 1971, 1394; A 2001, 2216 )
“Purchase price” means the
aggregate amount to be paid by a buyer to a seller for a prepaid contract.
(Added to NRS by 1971, 1394; A 1987, 1260)
“Sales commission” means
that portion of the purchase price paid to or retained by the seller as
compensation in connection with the sale of a prepaid contract.
(Added to NRS by 1971, 1394)
“Seller” means any person selling a
prepaid contract.
(Added to NRS by 1971, 1394)
“Trust fund” means a fund
containing any money deposited with a trustee by a seller with respect to
a prepaid contract.
(Added to NRS by 1971, 1394; A 1987, 1260)
“Trust liability” means
100 percent of the purchase price after deducting commissions.
(Added to NRS by 1991, 2203; A 1993, 2616)
“Trustee” means:
1. A state or national bank;
2. A trust company;
3. A federally insured savings and loan association; or
4. A credit union insured by the National Credit Union Share
Insurance Fund or by a private insurer approved pursuant to NRS 678.755
,
Ê authorized to transact such business in the State of Nevada and
designated as the trustee of the trust fund in a prepaid contract.
(Added to NRS by 1971, 1394; A 1999, 1550 )
FUNERAL SERVICES
As used in NRS 689.150 to 689.375 ,
inclusive, unless the context otherwise requires:
1. “Funeral service or services” means those services performed
normally by funeral directors or funeral or mortuary parlors and includes
their sales of supplies and equipment for burial. The term includes
cremations and crematory services. The term does not include services
performed by a cemetery or the sale by a cemetery of services, interests
in land, markers, memorials, monuments or merchandise and equipment in
relation to the cemetery or the sale of crypts or niches constructed or
to be constructed in a mausoleum or columbarium or otherwise on the
property of a cemetery.
2. “Performer” means any person designated in a prepaid contract
to furnish the funeral services, supplies and equipment covered by the
contract on the demise of the beneficiary.
3. “Prepaid contract” means any contract under which, for a
specified consideration paid in advance in a lump sum or by installments,
a person promises either before or upon the death of a beneficiary named
in or otherwise ascertainable from the contract to furnish funeral
services and merchandise. The term does not include a contract of
insurance or any instrument in writing whereby any charitable, religious,
benevolent or fraternal benefit society, corporation, association,
institution or organization, not having for its object or purpose
pecuniary profit, promises or agrees to embalm, inter or otherwise
dispose of the remains of any person, or to procure or pay the expenses,
or any part thereof, of embalming, interring or otherwise disposing of
the remains of any person.
(Added to NRS by 1987, 1251; A 1993, 2616)
1. It is unlawful for any person to receive, hold, control or
manage money or proceeds received or derived from the sale of, or from a
contract to sell, any personal property, merchandise, funeral supplies or
services of any description not already existing, available, deliverable
and suitable for use in, or for the performance of, any service before
the final disposition of the remains of any deceased person, whether such
payments are made in lump sum or on an installment basis, before the
demise of the person purchasing them or the person for whose use and
benefit they are purchased, unless the provisions of NRS 689.150 to 689.375 ,
inclusive, are complied with.
2. The provisions of subsection 1 do not apply to a bona fide
prepaid agreement whereby a licensed mortuary or funeral home is to
furnish funeral services to a person who has a medically diagnosed
terminal illness and which agreement is entered into and fully performed
by the mortuary or funeral home on a date which is within 60 days of the
date medically predicted for the demise of the person.
(Added to NRS by 1971, 1394; A 1987, 1260)
1. The provisions of NRS 683A.341 , 683A.451 , 683A.461 , 683A.480 and 686A.010 to 686A.310 , inclusive, apply to agents and sellers.
2. For the purposes of subsection 1, unless the context requires
that a section apply only to insurers, any reference in those sections to
“insurer” must be replaced by a reference to “agent” and “seller.”
3. The provisions of NRS 679B.230 to 679B.300 , inclusive, apply to sellers. Unless the
context requires that a provision apply only to insurers, any reference
in those sections to “insurer” must be replaced by a reference to
“seller.”
(Added to NRS by 1985, 1075; A 1987, 1260; 2001, 2216 )
A person shall not sell any prepaid contract or
accept any money under such a contract unless:
1. He holds a valid certificate of authority as a seller issued by
the Commissioner; and
2. The contract and the sale thereof are in compliance with the
provisions of NRS 689.150 to 689.375
, inclusive.
(Added to NRS by 1971, 1395; A 1985, 349; 1987, 1261)
1. The proposed seller, or the appropriate corporate officer of
the proposed seller, shall apply in writing to the Commissioner for a
seller’s certificate of authority, showing:
(a) The proposed seller’s name and address, and his occupations
during the preceding 5 years;
(b) The name and address of the proposed trustee;
(c) The names and addresses of the proposed performers, specifying
what particular services, supplies and equipment each performer is to
furnish under the proposed prepaid contract; and
(d) Such other pertinent information as the Commissioner may
reasonably require.
2. The application must be accompanied by:
(a) A copy of the proposed trust agreement and a written statement
signed by an authorized officer of the proposed trustee to the effect
that the proposed trustee understands the nature of the proposed trust
fund and accepts it;
(b) A copy of each contract or understanding, existing or proposed,
between the seller and performers relating to the proposed prepaid
contract or items to be supplied under it;
(c) A certified copy of the articles of incorporation and the
bylaws of any corporate applicant;
(d) A copy of any other document relating to the proposed seller,
trustee, trust, performer or prepaid contract, as required by the
Commissioner;
(e) A complete set of his fingerprints and written permission
authorizing the Commissioner to forward those fingerprints to the Central
Repository for Nevada Records of Criminal History for submission to the
Federal Bureau of Investigation for its report;
(f) A fee representing the amount charged by the Federal Bureau of
Investigation for processing the fingerprints of the applicant; and
(g) The applicable fee established in NRS 680B.010 , which is not refundable.
(Added to NRS by 1971, 1395; A 1987, 464, 1261; 2003, 2868 )
1. Before the issuance of a certificate of authority, the seller
shall post with the Commissioner and thereafter maintain in force a bond
in the principal sum of $50,000 issued by an authorized corporate surety
in favor of the State of Nevada, or a deposit of cash or negotiable
securities or a combination of cash and negotiable securities. If a
deposit is made in lieu of a bond, the deposit must at all times have a
market value of not less than the amount of the bond required by the
Commissioner.
2. The bond or deposit must be held for the benefit of buyers of
prepaid contracts, and other persons as their interests may appear, who
may be damaged by misuse or diversion of money by the seller or his
agents, or to satisfy any judgments against the seller for failure to
perform a prepaid contract. The aggregate liability of the surety for all
breaches of the conditions of the bond must not exceed the sum of the
bond. The surety on the bond has the right to cancel the bond upon giving
30 days’ notice to the Commissioner and thereafter is relieved of
liability for any breach of condition occurring after the effective date
of the cancellation.
3. The Commissioner shall release the bond or deposit after the
seller has ceased doing business as such and the Commissioner is
satisfied of the nonexistence of any obligation or liability of the
seller for which the bond or deposit was held.
(Added to NRS by 1971, 1395; A 1987, 1262)
1. If the Commissioner finds that the application is complete and
the applicant otherwise qualifies under the provisions of NRS 689.150
to 689.375 , inclusive, he shall issue a seller’s
certificate of authority to the applicant.
2. The Commissioner shall refuse to issue a seller’s certificate
of authority to any applicant who does not comply with or otherwise meet
the requirements of NRS 689.150 to
689.375 , inclusive. Upon such refusal,
the Commissioner shall give written notice thereof to the applicant,
setting forth the reasons for his refusal.
(Added to NRS by 1971, 1396; A 1987, 1263)
1. Each seller’s certificate of authority issued pursuant to NRS
689.150 to 689.375 , inclusive, expires at midnight on April 30 of
the third year following its date of issuance or renewal.
2. The Commissioner shall renew a certificate of authority upon
receiving a written request for renewal from the seller, accompanied by
the applicable fee for renewal, which is not refundable, if he finds that
the seller is, at that time, in compliance with all applicable provisions
of NRS 689.150 to 689.375 , inclusive.
3. The Commissioner may accept a request for renewal received by
him within 30 days after the expiration of the certificate if the request
is accompanied by a fee for renewal of 150 percent of the fee otherwise
required.
(Added to NRS by 1971, 1396; A 1987, 464, 1263)
1. After giving written notice of charges to the seller, not less
than 30 days in advance of a hearing, the Commissioner may, after the
hearing, revoke the seller’s certificate of authority if the seller:
(a) Obtained his certificate of authority through misrepresentation
or concealment of a material fact;
(b) Is no longer qualified for such a certificate of authority; or
(c) Knowingly violates any provision of NRS 689.150 to 689.375 ,
inclusive, or any lawful order or regulation of the Commissioner.
2. If a seller is found to be in violation of paragraph (c) of
subsection 1, the Commissioner may, in lieu of revocation, suspend his
seller’s certificate of authority for a period not to exceed 90 days.
(Added to NRS by 1971, 1396; A 1977, 99; 1987, 1263)
1. It is unlawful for any person to solicit the sale of a prepaid
contract in this state on behalf of a seller unless he holds a valid
agent’s license issued by the Commissioner.
2. This section does not apply to a seller who holds a valid
seller’s certificate of authority.
3. A person who solicits the sale of a prepaid contract in this
state without a license is subject to an administrative fine of not more
than $1,000 for each violation.
(Added to NRS by 1971, 1396; A 1987, 1263; 2001, 2216 )
[Effective until the date of the repeal of the federal law requiring each
state to establish procedures for withholding, suspending and restricting
the professional, occupational and recreational licenses for child
support arrearages and for noncompliance with certain processes relating
to paternity or child support proceedings.]
1. To qualify for an agent’s license, the applicant:
(a) Must file a written application with the Commissioner on forms
prescribed by the Commissioner;
(b) Must have a good business and personal reputation; and
(c) Must not have been convicted of, or entered a plea of guilty or
nolo contendere to, forgery, embezzlement, obtaining money under false
pretenses, larceny, extortion, conspiracy to defraud or any crime
involving moral turpitude.
2. The application must:
(a) Contain information concerning the applicant’s identity,
address, social security number and personal background and business,
professional or work history.
(b) Contain such other pertinent information as the Commissioner
may require.
(c) Be accompanied by a complete set of the fingerprints of the
applicant and written permission authorizing the Commissioner to forward
those fingerprints to the Central Repository for Nevada Records of
Criminal History for submission to the Federal Bureau of Investigation
for its report.
(d) Be accompanied by a fee representing the amount charged by the
Federal Bureau of Investigation for processing the fingerprints of the
applicant.
(e) Be accompanied by the statement required pursuant to NRS
689.258 .
(f) Be accompanied by the applicable fee established in NRS
680B.010 , which is not refundable.
3. A conviction of, or plea of guilty or nolo contendere by, an
applicant or licensee for any crime listed in paragraph (c) of subsection
1 is a sufficient ground for the Commissioner to deny a license to the
applicant, or to suspend or revoke the agent’s license pursuant to NRS
689.265 .
(Added to NRS by 1971, 1397; A 1981, 1807; 1987, 1263; 1997, 2199,
3033; 1999, 520 ; 2003, 2868 )
[Effective on the date of the repeal of the federal law requiring each
state to establish procedures for withholding, suspending and restricting
the professional, occupational and recreational licenses for child
support arrearages and for noncompliance with certain processes relating
to paternity or child support proceedings.]
1. To qualify for an agent’s license, the applicant:
(a) Must file a written application with the Commissioner on forms
prescribed by the Commissioner;
(b) Must have a good business and personal reputation; and
(c) Must not have been convicted of, or entered a plea of guilty or
nolo contendere to, forgery, embezzlement, obtaining money under false
pretenses, larceny, extortion, conspiracy to defraud or any crime
involving moral turpitude.
2. The application must:
(a) Contain information concerning the applicant’s identity,
address, personal background and business, professional or work history.
(b) Contain such other pertinent information as the Commissioner
may require.
(c) Be accompanied by a complete set of his fingerprints and
written permission authorizing the Commissioner to forward those
fingerprints to the Central Repository for Nevada Records of Criminal
History for submission to the Federal Bureau of Investigation for its
report.
(d) Be accompanied by a fee representing the amount charged by the
Federal Bureau of Investigation for processing the fingerprints of the
applicant.
(e) Be accompanied by the applicable fee established in NRS
680B.010 , which is not refundable.
3. A conviction of, or plea of guilty or nolo contendere by, an
applicant or licensee for any crime listed in paragraph (c) of subsection
1 is a sufficient ground for the Commissioner to deny a license to the
applicant, or to suspend or revoke the agent’s license pursuant to NRS
689.265 .
(Added to NRS by 1971, 1397; A 1981, 1807; 1987, 1263; 1997, 2199,
3033; 2003, 2868 , effective on the date of the repeal of
the federal law requiring each state to establish procedures for
withholding, suspending and restricting the professional, occupational
and recreational licenses for child support arrearages and for
noncompliance with certain processes relating to paternity or child
support proceedings)
1. If the Commissioner finds that the application is complete and
the applicant meets the requirements of NRS 689.235 after an investigation not to exceed 30 days,
he shall issue at the request of the holder of a valid seller’s
certificate of authority an agent’s license to the applicant.
2. If the license is denied the Commissioner shall immediately
notify the applicant and the seller whom the applicant was to represent
setting forth the reasons for the denial.
(Added to NRS by 1971, 1397; A 1987, 1264)
[Effective until the date of the repeal of the federal law
requiring each state to establish procedures for withholding, suspending
and restricting the professional, occupational and recreational licenses
for child support arrearages and for noncompliance with certain processes
relating to paternity or child support proceedings.]
1. Each agent’s license issued pursuant to NRS 689.150 to 689.375 ,
inclusive, continues in force for 3 years unless it is suspended, revoked
or otherwise terminated.
2. An agent’s license may be renewed at the request of the holder
of a valid seller’s certificate of authority, upon filing a written
request for renewal accompanied by the required fee for renewal and the
statement required pursuant to NRS 689.258 . The fee for renewal is nonrefundable.
3. Any license not so renewed expires at midnight on the last day
of the month specified for its renewal. The Commissioner may accept a
request for renewal received by him within 30 days after the expiration
of the license if the request is accompanied by a fee for renewal of 150
percent of the fee otherwise required and the statement required pursuant
to NRS 689.258 .
4. An agent’s license is valid only while the agent is employed by
a holder of a valid seller’s certificate of authority.
(Added to NRS by 1971, 1397; A 1981, 1807; 1987, 465, 1264; 1997,
2199)
[Effective on the date of the repeal of the federal law
requiring each state to establish procedures for withholding, suspending
and restricting the professional, occupational and recreational licenses
for child support arrearages and for noncompliance with certain processes
relating to paternity or child support proceedings.]
1. Each agent’s license issued pursuant to NRS 689.150 to 689.375 ,
inclusive, continues in force for 3 years unless it is suspended, revoked
or otherwise terminated.
2. An agent’s license may be renewed at the request of the holder
of a valid seller’s certificate of authority, upon filing a written
request for renewal accompanied by the required fee for renewal, which is
nonrefundable.
3. Any license not so renewed expires at midnight on the last day
of the month specified for its renewal. The Commissioner may accept a
request for renewal received by him within 30 days after the expiration
of the license if the request is accompanied by a fee for renewal of 150
percent of the fee otherwise required.
4. An agent’s license is valid only while the agent is employed by
a holder of a valid seller’s certificate of authority.
(Added to NRS by 1971, 1397; A 1981, 1807; 1987, 465, 1264; 1997,
2199, effective on the date of the repeal of the federal law requiring
each state to establish procedures for withholding, suspending and
restricting the professional, occupational and recreational licenses for
child support arrearages and for noncompliance with certain processes
relating to paternity or child support proceedings)
[Expires by limitation on the date of the repeal of the
federal law requiring each state to establish procedures for withholding,
suspending and restricting the professional, occupational and
recreational licenses for child support arrearages and for noncompliance
with certain processes relating to paternity or child support
proceedings.]
1. An applicant for the issuance or renewal of an agent’s license
pursuant to this chapter shall submit to the Commissioner the statement
prescribed by the Division of Welfare and Supportive Services of the
Department of Health and Human Services pursuant to NRS 425.520 . The statement must be completed and signed by
the applicant.
2. The Commissioner shall include the statement required pursuant
to subsection 1 in:
(a) The application or any other forms that must be submitted for
the issuance or renewal of the license; or
(b) A separate form prescribed by the Commissioner.
3. An agent’s license may not be issued or renewed by the
Commissioner pursuant to this chapter if the applicant:
(a) Fails to submit the statement required pursuant to subsection
1; or
(b) Indicates on the statement submitted pursuant to subsection 1
that he is subject to a court order for the support of a child and is not
in compliance with the order or a plan approved by the district attorney
or other public agency enforcing the order for the repayment of the
amount owed pursuant to the order.
4. If an applicant indicates on the statement submitted pursuant
to subsection 1 that he is subject to a court order for the support of a
child and is not in compliance with the order or a plan approved by the
district attorney or other public agency enforcing the order for the
repayment of the amount owed pursuant to the order, the Commissioner
shall advise the applicant to contact the district attorney or other
public agency enforcing the order to determine the actions that the
applicant may take to satisfy the arrearage.
(Added to NRS by 1997, 2198)
[Expires by limitation on the date of the repeal of the
federal law requiring each state to establish procedures for withholding,
suspending and restricting the professional, occupational and
recreational licenses for child support arrearages and for noncompliance
with certain processes relating to paternity or child support
proceedings.]
1. If the Commissioner receives a copy of a court order issued
pursuant to NRS 425.540 that provides
for the suspension of all professional, occupational and recreational
licenses, certificates and permits issued to a person who is the holder
of an agent’s license issued pursuant to this chapter, the Commissioner
shall deem the license issued to that person to be suspended at the end
of the 30th day after the date on which the court order was issued unless
the Commissioner receives a letter issued to the holder of the license by
the district attorney or other public agency pursuant to NRS 425.550
stating that the holder of the license
has complied with the subpoena or warrant or has satisfied the arrearage
pursuant to NRS 425.560 .
2. The Commissioner shall reinstate an agent’s license issued
pursuant to this chapter that has been suspended by a district court
pursuant to NRS 425.540 if the
Commissioner receives a letter issued by the district attorney or other
public agency pursuant to NRS 425.550
to the person whose license was suspended stating that the person whose
license was suspended has complied with the subpoena or warrant or has
satisfied the arrearage pursuant to NRS 425.560 .
(Added to NRS by 1997, 2198)
The
Commissioner may proceed against an agent’s license in the same manner as
provided in NRS 689.215 if the agent:
1. Obtained his license through misrepresentation or concealment
of a material fact.
2. Is no longer qualified for such a license.
3. Knowingly violates any provision of NRS 689.150 to 689.375 ,
inclusive, or any lawful order or regulation of the Commissioner.
(Added to NRS by 1971, 1397; A 1987, 1265)
1. All forms for a prepaid contract offered or sold in this state
must contain:
(a) The names and addresses of the seller, buyer, beneficiary and
trustee and of each performer;
(b) A clear and unambiguous statement of the services and property
to be supplied and by whom;
(c) The purchase price of each item of supply or service and how
payable;
(d) The date and place of execution;
(e) Other reasonable and appropriate provisions as prescribed by
the Commissioner by regulation;
(f) The full percentage of the sales commission to be retained by
the seller;
(g) The seller’s or his agent’s signature on the original contract
and his identification by name and title on any duplicate copy of the
contract given to the buyer;
(h) A provision in 14-point type or larger, stating in substance
that the buyer is permitted to return the contract within 10 days after
its delivery to the buyer and to have the full purchase price or amount
paid thereon refunded if the buyer is not satisfied with it for any
reason;
(i) In print on its face sheet, in 14-point type or larger, a
notice stating, “This is not an insurance contract.”; and
(j) A provision for the return of the net purchase price at any
time before the services are performed by the seller.
2. The written contract, when signed, constitutes the entire
agreement between the parties relative to its subject matter.
3. If the buyer, pursuant to the provision required by paragraph
(h) of subsection 1, returns the contract to the seller at his branch or
home office or to the agent through whom it was purchased, the contract
is void from the beginning and the parties return to the same position
they occupied before the contract was entered into.
(Added to NRS by 1971, 1397; A 1987, 1265)
1. A seller shall not offer, sell or deliver in this state any
prepaid contract unless the form of the contract has been filed with and
approved in writing by the Commissioner.
2. The Commissioner shall disapprove any form of contract which he
finds:
(a) Printed or reproduced in such a manner as to be substantially
illegible in whole or in part;
(b) Contains ambiguous or misleading provisions, clauses or titles;
(c) Includes or combines in the prepaid contract provisions for the
purchase of a cemetery plot and incidental burial services; or
(d) Does not comply or is inconsistent with any applicable
requirement of NRS 689.150 to 689.375
, inclusive, or for other good cause
shown.
3. No amendment or modification of any form may be made unless the
amendment or modification has been filed with and approved in writing by
the Commissioner.
4. Each filing is subject to a waiting period of up to 30 days
before it becomes effective.
5. Upon written application by the holder of a seller’s
certificate of authority, the Commissioner may authorize a filing which
he has reviewed to become effective before the expiration of the waiting
period or any extension thereof.
6. A filing shall be deemed to meet the requirements of NRS
689.150 to 689.375 , inclusive, unless disapproved by the
Commissioner within the waiting period or any extension thereof.
(Added to NRS by 1971, 1398; A 1987, 1266)
If the
purchase price for a prepaid contract is to be paid in installments, the
seller may make available to the buyer credit life insurance on a form
and terms filed with and approved by the Commissioner. The buyer must be
provided with a certificate of the credit insurance by the seller or as
otherwise required by the Commissioner.
(Added to NRS by 1971, 1398; A 1987, 1266)
The
sales commission on any prepaid contract shall not exceed 25 percent of
the purchase price.
(Added to NRS by 1971, 1399)
1. The seller shall establish and maintain a trust fund with an
authorized trustee, for the benefit of the beneficiary of the prepaid
contract, in accordance with the trust agreement filed with and approved
by the Commissioner.
2. The seller shall maintain unimpaired and shall deposit in the
trust fund, within 15 days after the end of the month in which payment
was received, all installments received on prepaid contracts sold after
the sales commission has been deducted.
3. The trustee shall, with respect to the money in the trust fund,
exercise the judgment and care under the circumstances then prevailing
which persons of prudence, discretion and intelligence exercise in the
management of their own affairs, not in regard to speculation, but in
regard to the permanent disposition of their money, considering the
probable income as well as the probable safety of their capital. Within
the limitations of such standards, and subject to any express provision
or limitation contained in any particular trust instrument, a trustee may
acquire and retain every kind of investment, specifically including
bonds, debentures and other corporate obligations and stocks, preferred
or common, which persons of prudence, discretion and intelligence acquire
or retain for their own account.
4. Except as otherwise provided in NRS 689.150 to 689.375 ,
inclusive, or the trust agreement approved in writing by the Commissioner
or as may be required by an order of a court of competent jurisdiction,
the trustees shall maintain the trust fund intact and unimpaired and
shall make no other payment or disbursement from the trust fund.
(Added to NRS by 1971, 1399; A 1987, 1266; 1997, 1626)
1. Not more than 75 percent of the earnings of such investments,
including capital gains, as they accrue and are received, may be
disbursed by the trustee to the seller or his designee. The remainder of
any earnings must be held by the trustee to establish a reserve for
securities valuation until the reserve equals 25 percent of the total
trust liabilities.
2. The trustee shall maintain in the trust fund an amount of money
equal to 125 percent of the total trust liabilities.
3. If money in the trust fund is invested or reinvested in:
(a) Securities which are issued or guaranteed by the United States
of America;
(b) Bonds of this state or the bonds of any other state;
(c) Bonds of counties or municipalities of any state;
(d) Deposits in any bank, credit union or savings and loan
association that is federally insured or insured by a private insurer
approved pursuant to NRS 678.755 ; or
(e) With the written approval of the Commissioner, any investment
which would have guaranteed liquidity,
Ê then no earnings of those investments, including capital gains, if any,
as such earnings accrue and are received, may be disbursed by the trustee
to the seller or his designee which would reduce the corpus of the trust
fund below 100 percent of the required value of the trust. Earnings in
excess of 100 percent of the required value of the trust or 125 percent
of the total trust liability, whichever is appropriate, may be
distributed annually.
4. Earnings are defined as any sum remaining in the trust fund
after deducting costs of administration over and above 100 percent of the
required value of the trust.
5. Every trustee handling money in a trust fund pursuant to NRS
689.150 to 689.375 , inclusive, shall file with the Commissioner,
within 15 days after the first day of each calendar quarter, a financial
statement showing the activity of all trusts required to be maintained by
any seller and the total market value of each trust as of the first day
of the calendar quarter. The statement must be on forms prescribed and
adopted by the Commissioner. Every quarterly report must be accompanied
by a fee of $10. If the statement is not received by the Commissioner as
required, he may, after giving the seller 10 days’ written notice, revoke
the seller’s certificate of authority.
6. The trust must be valued quarterly and averaged annually to
determine the total value of the trust. If the average market value as of
December 31 of each year is below 100 percent of the required value of
the trust or 125 percent of the total trust liability, the Commissioner
may suspend the seller’s certificate of authority until the deficiency is
made up.
(Added to NRS by 1971, 1399; A 1987, 1267; 1999, 1551 )
The net purchase price of the
preneed contract shall be available to the buyer or his estate or heirs
at any time prior to performing the service described in the preneed
contract upon written notice to the seller and trustee of the intent of
the buyer or his estate or heirs to terminate the preneed contract and
withdraw trust funds attributable to the buyer.
(Added to NRS by 1971, 1400)
1. Except as otherwise provided in subsection 2, if the buyer
moves to another geographic area beyond the normal facilities of the
seller and performers under the prepaid contract, the contract
automatically terminates upon the buyer’s written notice to the seller
and trustee of his move and of his desire to terminate the contract. The
trustee, as soon as reasonably possible after receipt of the notice,
shall refund to the buyer all money in the trust fund, including earned
interest, held for the buyer’s account.
2. If the contract continues in force and the buyer is not in
default thereunder, upon the demise of the contract beneficiary, the
contract automatically terminates. Upon termination, the seller shall
refund to the buyer or to his representative or estate, or transfer to a
substituted performer, if any, all money paid on the contract.
(Added to NRS by 1971, 1400; A 1987, 1268; 2001, 2216 )
1. An executory prepaid contract automatically terminates if the
seller or any performer under the contract goes out of business, dies,
becomes insolvent or bankrupt, makes an assignment for the benefit of
creditors or is otherwise unable to fulfill the obligations under the
contract unless, within 30 days after the going out of business, death,
insolvency or bankruptcy of the seller, or within any extension of time
granted by the Commissioner, the contract is assigned to a holder of a
valid seller’s certificate of authority who agrees in writing to accept
the liabilities under the contract and agrees to fulfill all obligations
set forth therein.
2. Upon any such termination, the money in the trust fund,
including earned interest, held by the trustee for the account of the
buyer must be distributed by the trustee to the buyer or to a qualified
seller or performer assuming the outstanding contractual liabilities, as
authorized by the Commissioner.
(Added to NRS by 1971, 1400; A 1987, 1268; 2001, 2216 )
1. Every seller shall keep:
(a) Accurate accounts, books and records of all transactions;
(b) Copies of all agreements and dates and amounts of payments made
and accepted;
(c) The names and addresses of the contracting parties; and
(d) The persons for whose benefit the payments are accepted and the
names of the depositories in which the payments are deposited.
2. The seller shall keep within this State, at the address shown
upon the certificate of authority, complete records of all transactions
made under his certificate of authority. Those records and the affairs of
the seller are subject to audit and examination by the Commissioner at
any reasonable time. The seller shall keep such records for not less than
5 years after the completion of all transactions to which they relate.
(Added to NRS by 1971, 1401; A 1987, 1269)
BURIAL AND CEMETERY SERVICES
As used in NRS 689.450 to 689.595 ,
inclusive, unless the context otherwise requires, the words and terms
defined in NRS 689.455 to 689.475
, inclusive, have the meanings ascribed
to them in those sections.
(Added to NRS by 1987, 1251)
“Burial merchandise”
means those items normally supplied by a cemetery authority under a
preneed sales agreement, including urns, memorials, scrolls, vases,
foundations, bases and other similar merchandise, but does not include
the sale of space for interment, entombment or inurnment.
(Added to NRS by 1987, 1251)
“Burial services” means
those services normally performed by a cemetery authority under a preneed
sales agreement for the opening and closing of graves, crypts and niches,
and other services in relation thereto.
(Added to NRS by 1987, 1251)
“Cemetery authority”
means any natural person, partnership, corporation, association or
cemetery district owning or controlling lands or property for a cemetery
and engaged in the operation of a cemetery in this State which provides
endowment care or sells burial merchandise or services under prepaid
contracts.
(Added to NRS by 1987, 1251; A 1993, 2617)
“Performer” means any person
designated in the prepaid contract to furnish the burial merchandise and
supplies and to perform the services covered by the contract, on the
demise of the beneficiary.
(Added to NRS by 1987, 1251)
1. “Prepaid contract” means any contract under which, for a
specified consideration paid in advance in a lump sum or by installments,
a person promises, either before or upon the death of a beneficiary named
in or otherwise ascertainable from the contract, to provide burial
services and to furnish adaptable or suitable personal property,
merchandise, supplies or facilities in connection with such services.
2. “Prepaid contract” does not include a contract of insurance or
any instrument in writing whereby any charitable, religious, benevolent
or fraternal benefit society, corporation, association, institution or
organization, not having for its object or purpose pecuniary profit,
promises or agrees to embalm, inter or otherwise dispose of the remains
of any person, or to procure or pay the expenses, or any part thereof,
for embalming, interring or otherwise disposing of the remains of any
person.
(Added to NRS by 1987, 1252)
1. It is unlawful for any person to receive, hold, control or
manage money or proceeds received or derived from the sale of, or from a
contract to sell, any personal property, equipment, merchandise or
supplies of any description not then already existing, available,
deliverable and suitable for use in, or for the performance of, any
services connected with the interment, entombment or inurnment of the
remains of any deceased person, whether any such payment is made in lump
sum or on an installment basis, before the demise of the contract
beneficiary for whom purchased, unless the provisions of NRS 689.450
to 689.595 , inclusive, are complied with.
2. The provisions of subsection 1 do not apply to:
(a) The sale of grave plots, interests in land of a cemetery or
space in a mausoleum vault or crypt or columbarium niche by any cemetery
authority otherwise authorized to make such sales under NRS 689.450
to 689.595 , inclusive, which sales must be separated and
distinctly defined in any agreement for burial merchandise and services.
(b) A bona fide prepaid agreement whereby a cemetery authority is
to furnish burial merchandise and services to a person who has a
medically diagnosed terminal illness and which agreement is entered into
and fully performed by the cemetery authority within 60 days of the date
medically predicted for the demise of the beneficiary named in any such
agreement.
(Added to NRS by 1987, 1252)
1. It is unlawful for any cemetery authority, or any person on
behalf of a cemetery authority, to offer or sell any burial merchandise
or services under a prepaid contract unless the cemetery authority has
been issued a seller’s permit by the Commissioner.
2. Subsection 1 does not apply to cemeteries owned and operated by
governmental agencies.
3. A person who offers or sells any burial merchandise or services
under a prepaid contract in this state in violation of the provisions of
this section is subject to an administrative fine of not more than $1,000
for each violation.
(Added to NRS by 1987, 1252; A 1993, 2617; 2001, 2217 )
1. The proposed seller, or the appropriate corporate officer of
the seller, shall apply in writing to the Commissioner for a seller’s
permit, showing:
(a) The proposed seller’s name and address and his occupations
during the preceding 5 years;
(b) The name and address of the proposed trustee;
(c) The names and addresses of the proposed performers, specifying
what particular services, supplies and equipment each performer is to
furnish under the proposed prepaid contract; and
(d) Such other pertinent information as the Commissioner may
reasonably require.
2. The application must be accompanied by:
(a) A copy of the proposed trust agreement and a written statement
signed by an authorized officer of the proposed trustee to the effect
that the proposed trustee understands the nature of the proposed trust
fund and accepts it;
(b) A copy of each contract or understanding, existing or proposed,
between the seller and performers relating to the proposed prepaid
contract or items to be supplied under it;
(c) A certified copy of the articles of incorporation and the
bylaws of any corporate applicant;
(d) A copy of any other document relating to the proposed seller,
trustee, trust, performer or prepaid contract, as required by the
Commissioner;
(e) A complete set of his fingerprints and written permission
authorizing the Commissioner to forward those fingerprints to the Central
Repository for Nevada Records of Criminal History for submission to the
Federal Bureau of Investigation for its report;
(f) A fee representing the amount charged by the Federal Bureau of
Investigation for processing the fingerprints of the applicant; and
(g) The applicable fee established in NRS 680B.010 , which is not refundable.
(Added NRS by 1987, 1252; A 1993, 2617; 2003, 2869 )
1. Before the issuance of a permit to a seller, the seller shall
post with the Commissioner and thereafter maintain in force a bond in the
principal sum of $50,000 issued by an authorized corporate surety in
favor of the State of Nevada, or a deposit of cash or negotiable
securities or a combination of cash and negotiable securities. If a
deposit is made in lieu of a bond, the deposit must at all times have a
market value not less than the amount of the bond required by the
Commissioner.
2. The bond or deposit must be held for the benefit of buyers of
prepaid contracts, and other persons as their interests may appear, who
may be damaged by misuse or diversion of money by the seller or his
agents, or to satisfy any judgments against the seller for failure to
perform a prepaid contract. The aggregate liability of the surety for all
breaches of the conditions of the bond must not exceed the sum of the
bond. The surety on the bond has the right to cancel the bond upon giving
30 days’ notice to the Commissioner and thereafter is relieved of
liability for any breach of condition occurring after the effective date
of the cancellation.
3. The Commissioner shall release the bond or deposit after the
seller has ceased doing business as such and the Commissioner is
satisfied of the nonexistence of any obligation or liability of the
seller for which the bond or deposit was held.
(Added to NRS by 1987, 1253; A 1993, 2617)
1. If the Commissioner finds that the application is complete,
that the cemetery authority is in compliance with all requirements
therefor, that the applicant otherwise qualifies under the provisions of
NRS 689.450 to 689.595 , inclusive, and upon satisfactory evidence
that a burial merchandise and service trust fund has been established, he
shall issue a seller’s permit to the applicant.
2. The Commissioner shall refuse to issue a seller’s permit to any
applicant who does not comply with or otherwise meet the requirements of
NRS 689.450 to 689.595 , inclusive. Upon such refusal, the
Commissioner shall give written notice thereof to the applicant setting
forth the reasons for his refusal.
(Added to NRS by 1987, 1253; A 1993, 2618)
1. Each seller’s permit issued pursuant to NRS 689.450 to 689.595 ,
inclusive, continues in effect for 3 years unless it is suspended,
revoked or otherwise terminated.
2. The Commissioner shall renew a seller’s permit upon receiving a
written request for renewal from the seller, accompanied by the
applicable fee for renewal, which is not refundable, if he finds that the
seller is, at that time, in compliance with all applicable provisions of
NRS 689.450 to 689.595 , inclusive.
3. A permit which is not renewed expires at midnight on the last
day specified for its renewal. The Commissioner may accept a request for
renewal received by him within 30 days after the expiration of the permit
if the request is accompanied by a fee for renewal of 150 percent of the
fee otherwise required.
(Added to NRS by 1987, 1254; A 1993, 2618)
1. After giving written notice of charges to the seller, not less
than 30 days in advance of a hearing, the Commissioner may, after the
hearing, revoke the seller’s permit if he:
(a) Obtained his permit through misrepresentation or concealment of
a material fact;
(b) Is no longer qualified for such a permit; or
(c) Violates any provision of NRS 689.450 to 689.595 ,
inclusive, or any lawful order or regulation of the Commissioner.
2. If a seller is found to be in violation of paragraph (c) of
subsection 1, the Commissioner may, in lieu of revocation, suspend his
seller’s permit for a period not to exceed 90 days.
(Added to NRS by 1987, 1254; A 1993, 2618)
1. It is unlawful for any person to solicit the sale of a prepaid
contract in this state on behalf of a seller unless he holds a valid
agent’s license issued by the Commissioner.
2. This section does not apply to a seller who holds a valid
seller’s permit.
3. A person who solicits the sale of a prepaid contract in this
state without a license or seller’s permit is subject to an
administrative fine of not more than $1,000 for each violation.
(Added to NRS by 1987, 1254; A 1993, 2619; 2001, 2217 )
[Effective until the date of the repeal of the federal law requiring each
state to establish procedures for withholding, suspending and restricting
the professional, occupational and recreational licenses for child
support arrearages and for noncompliance with certain processes relating
to paternity or child support proceedings.]
1. To qualify for an agent’s license, the applicant:
(a) Must file a written application with the Commissioner on forms
prescribed by the Commissioner; and
(b) Must not have been convicted of, or entered a plea of guilty or
nolo contendere to, forgery, embezzlement, obtaining money under false
pretenses, larceny, extortion, conspiracy to defraud or any crime
involving moral turpitude.
2. The application must:
(a) Contain information concerning the applicant’s identity,
address, social security number, personal background and business,
professional or work history.
(b) Contain such other pertinent information as the Commissioner
may require.
(c) Be accompanied by a complete set of fingerprints and written
permission authorizing the Commissioner to forward those fingerprints to
the Central Repository for Nevada Records of Criminal History for
submission to the Federal Bureau of Investigation for its report.
(d) Be accompanied by a fee representing the amount charged by the
Federal Bureau of Investigation for processing the fingerprints of the
applicant.
(e) Be accompanied by the statement required pursuant to NRS
689.258 .
(f) Be accompanied by the applicable fee established in NRS
680B.010 , which is not refundable.
3. A conviction of, or plea of guilty or nolo contendere by, an
applicant or licensee for any crime listed in paragraph (b) of subsection
1 is a sufficient ground for the Commissioner to deny a license to the
applicant, or to suspend or revoke the agent’s license pursuant to NRS
689.535 .
(Added to NRS by 1987, 1254; A 1997, 2200, 3034; 1999, 520 ; 2003, 2869 )
[Effective on the date of the repeal of the federal law requiring each
state to establish procedures for withholding, suspending and restricting
the professional, occupational and recreational licenses for child
support arrearages and for noncompliance with certain processes relating
to paternity or child support proceedings.]
1. To qualify for an agent’s license, the applicant:
(a) Must file a written application with the Commissioner on forms
prescribed by the Commissioner; and
(b) Must not have been convicted of, or entered a plea of guilty or
nolo contendere to, forgery, embezzlement, obtaining money under false
pretenses, larceny, extortion, conspiracy to defraud or any crime
involving moral turpitude.
2. The application must:
(a) Contain information concerning the applicant’s identity,
address, personal background and business, professional or work history.
(b) Contain such other pertinent information as the Commissioner
may require.
(c) Be accompanied by a complete set of fingerprints and written
permission authorizing the Commissioner to forward those fingerprints to
the Central Repository for Nevada Records of Criminal History for
submission to the Federal Bureau of Investigation for its report.
(d) Be accompanied by a fee representing the amount charged by the
Federal Bureau of Investigation for processing the fingerprints of the
applicant.
(e) Be accompanied by the applicable fee established in NRS
680B.010 , which is not refundable.
3. A conviction of, or plea of guilty or nolo contendere by, an
applicant or licensee for any crime listed in paragraph (b) of subsection
1 is a sufficient ground for the Commissioner to deny a license to the
applicant, or to suspend or revoke the agent’s license pursuant to NRS
689.535 .
(Added to NRS by 1987, 1254; A 1997, 2200, 3034; 2003, 2869 , effective on the date of the repeal of
the federal law requiring each state to establish procedures for
withholding, suspending and restricting the professional, occupational
and recreational licenses for child support arrearages and for
noncompliance with certain processes relating to paternity or child
support proceedings)
1. If the Commissioner finds that the application is complete and
the applicant meets the requirements of NRS 689.520 after an investigation not to exceed 30 days,
he shall issue at the request of the holder of a valid seller’s permit an
agent’s license to the applicant.
2. If the license is denied the Commissioner shall immediately
notify the applicant and the seller that the applicant was to represent
setting forth the reasons for the denial.
(Added to NRS by 1987, 1255; A 1993, 2619)
[Effective until the date of the repeal of the federal law
requiring each state to establish procedures for withholding, suspending
and restricting the professional, occupational and recreational licenses
for child support arrearages and for noncompliance with certain processes
relating to paternity or child support proceedings.]
1. Each agent’s license issued pursuant to NRS 689.450 to 689.595 ,
inclusive, continues in effect for 3 years unless it is suspended,
revoked or otherwise terminated.
2. An agent’s license may be renewed, unless it has been suspended
or revoked, at the request of the holder of a valid seller’s permit upon
filing a written request for renewal accompanied by the applicable fee
for renewal and the statement required pursuant to NRS 689.258 . The fee for renewal is not refundable.
3. The Commissioner may accept a request for renewal which is
received by him within 30 days after the expiration of the license if the
request is accompanied by a fee for renewal of 150 percent of the fee
otherwise required and the statement required pursuant to NRS 689.258
.
4. An agent’s license is valid only while the agent is employed by
a holder of a valid seller’s permit.
(Added to NRS by 1987, 1255; A 1993, 2619; 1997, 2200)
[Effective on the date of the repeal of the federal law
requiring each state to establish procedures for withholding, suspending
and restricting the professional, occupational and recreational licenses
for child support arrearages and for noncompliance with certain processes
relating to paternity or child support proceedings.]
1. Each agent’s license issued pursuant to NRS 689.450 to 689.595 ,
inclusive, continues in effect for 3 years unless it is suspended,
revoked or otherwise terminated.
2. An agent’s license may be renewed, unless it has been suspended
or revoked, at the request of the holder of a valid seller’s permit upon
filing a written request for renewal accompanied by the applicable fee
for renewal, which is not refundable.
3. The Commissioner may accept a request for renewal which is
received by him within 30 days after the expiration of the license if the
request is accompanied by a fee for renewal of 150 percent of the fee
otherwise required.
4. An agent’s license is valid only while the agent is employed by
a holder of a valid seller’s permit.
(Added to NRS by 1987, 1255; A 1993, 2619; 1997, 2200, effective on
the date of the repeal of the federal law requiring each state to
establish procedures for withholding, suspending and restricting the
professional, occupational and recreational licenses for child support
arrearages and for noncompliance with certain processes relating to
paternity or child support proceedings)
The
Commissioner may proceed against an agent’s license in the same manner as
provided in NRS 689.510 if the agent:
1. Obtained his license through misrepresentation or concealment
of a material fact.
2. Is no longer qualified for such a license.
3. Knowingly violates any provision of NRS 689.450 to 689.595 ,
inclusive, or any lawful order or regulation of the Commissioner.
(Added to NRS by 1987, 1255)
1. All forms for a prepaid contract offered or sold in this state
must contain:
(a) The names and addresses of the seller, buyer, beneficiary and
trustee and of each performer;
(b) A clear and unambiguous statement of the services and
merchandise to be supplied and by whom;
(c) The purchase price of each item of supply or service and how
payable;
(d) The date and place of execution;
(e) Other reasonable and appropriate provisions as prescribed by
the Commissioner by regulation;
(f) The full percentage of the sales commission to be retained by
the seller;
(g) The seller’s or his agent’s signature on the original contract
and his identification by name and title on any duplicate copy of the
contract given to the buyer;
(h) A provision in 14-point type or larger, stating in substance
that the buyer is permitted to return the contract within 10 days after
its delivery to the buyer and to have the full purchase price or amount
paid thereon refunded if the buyer is not satisfied with it for any
reason; and
(i) In print on its face sheet, in 14-point type or larger, a
notice stating, “This is not an insurance contract.”
2. The written contract, when signed, constitutes the entire
agreement between the parties relative to its subject matter.
3. If the buyer, pursuant to the provision required by paragraph
(h) of subsection 1, returns the contract to the seller at his branch or
home office or to the agent through whom it was purchased, the contract
is void from the beginning and the parties return to the same position
they occupied before the contract was entered into.
(Added to NRS by 1987, 1255)
1. A seller shall not offer, sell or deliver in this state any
prepaid contract unless the form of the contract has been filed with and
approved in writing by the Commissioner.
2. The Commissioner shall disapprove any form of contract which he
finds:
(a) Printed or reproduced in such a manner as to be substantially
illegible in whole or in part;
(b) Contains ambiguous or misleading provisions, clauses or titles;
(c) Includes or combines in the prepaid contract provisions for the
purchase of cemetery plots and existing burial spaces, unless such sales
are separated and distinctly defined as burial merchandise and services;
or
(d) Does not comply or is inconsistent with any applicable
requirement of NRS 689.450 to 689.595
, inclusive,
Ê or for other good cause shown.
3. No amendment or modification of any form may be made unless the
amendment or modification has been filed with and approved in writing by
the Commissioner.
4. Each filing is subject to a waiting period of up to 30 days
before it becomes effective.
5. Upon written application by the holder of a seller’s permit,
the Commissioner may authorize a filing which he has reviewed to become
effective before the expiration of the waiting period or any extension
thereof.
6. A filing shall be deemed to meet the requirements of NRS
689.450 to 689.595 , inclusive, unless disapproved by the
Commissioner within the waiting period or any extension thereof.
(Added to NRS by 1987, 1256; A 1993, 2619)
If the
purchase price for a prepaid contract is to be paid in installments, the
seller may make available to the buyer credit life insurance on a form
and terms filed with and approved by the Commissioner. The buyer must be
provided with a certificate of the credit insurance by the seller or as
otherwise required by the Commissioner.
(Added to NRS by 1987, 1256)
The
sales commission on any prepaid contract must not exceed 40 percent of
the purchase price.
(Added to NRS by 1987, 1257)
1. The seller shall establish and maintain a trust fund with an
authorized trustee, for the benefit of the beneficiary of the prepaid
contract, in accordance with the trust agreement filed with and approved
by the Commissioner.
2. The seller shall maintain unimpaired and shall deposit in the
trust fund, within 15 days after the end of the month in which payment
was received, all installments received on prepaid contracts sold after
the sales commission has been deducted.
3. The trustee shall, with respect to the money in the trust fund,
exercise the judgment and care under the circumstances then prevailing
which persons of prudence, discretion and intelligence exercise in the
management of their own affairs, not in regard to speculation, but in
regard to the permanent disposition of their money, considering the
probable income as well as the probable safety of their capital. Within
the limitations of such standards, and subject to any express provision
or limitation contained in any particular trust instrument, a trustee may
acquire and retain every kind of investment, specifically including
bonds, debentures and other corporate obligations and stocks, preferred
or common, which persons of prudence, discretion and intelligence acquire
or retain for their own account.
4. Except as otherwise provided in NRS 689.450 to 689.595 ,
inclusive, or the trust agreement approved in writing by the Commissioner
or as may be required by an order of a court of competent jurisdiction,
the trustees shall maintain the trust fund intact and unimpaired and
shall not make any payment or disbursement from the trust fund.
(Added to NRS by 1987, 1257; A 1997, 1627)
1. Not more than 60 percent of the earnings of such investments,
including capital gains, as they accrue and are received, may be
disbursed by the trustee to the seller or his designee. The remainder of
any earnings must be held by the trustee to establish a reserve for
securities valuation until the reserve equals 40 percent of the total
trust liabilities.
2. The trustee shall maintain in the trust fund an amount of money
equal to 125 percent of the total trust liabilities.
3. If money in the trust fund is invested or reinvested in:
(a) Securities which are issued or guaranteed by the United States
of America;
(b) Bonds of this state or the bonds of any other state;
(c) Bonds of counties or municipalities of any state;
(d) Deposits in any bank, credit union or savings and loan
association that is federally insured or insured by a private insurer
approved pursuant to NRS 678.755 ; or
(e) With the written approval of the Commissioner, any investment
which has guaranteed liquidity,
Ê then no earnings of those investments, including capital gains, if any,
as such earnings accrue and are received, may be disbursed by the trustee
to the seller or his designee which would reduce the corpus of the trust
fund below 100 percent of the required value of the trust. Earnings in
excess of 100 percent of the required value of the trust or 125 percent
of the total trust liability, whichever is appropriate, may be
distributed annually.
4. Earnings are defined as any sum remaining in the trust fund
after deducting costs of administration over and above 100 percent of the
required value of the trust.
5. Every trustee handling money in a trust fund pursuant to NRS
689.450 to 689.595 , inclusive, shall file with the Commissioner,
within 15 days after the first day of each calendar quarter, a financial
statement showing the activity of all trusts required to be maintained by
any seller and the total market value of each trust as of the first day
of the calendar quarter. The statement for the fourth quarter must be a
summary of all transactions involving the account. The statement must be
on forms prescribed and adopted by the Commissioner. Every quarterly
report must be accompanied by a fee of $10. If the statement is not
received by the Commissioner as required, he may, after giving the seller
10 days’ written notice, revoke the seller’s permit.
6. The trust must be valued quarterly and averaged annually to
determine the total value of the trust. If the average market value of
the trust as of December 31 of each year is below 100 percent of the
required value of the trust or 125 percent of the total trust liability,
the Commissioner may suspend the seller’s permit until the deficiency is
made up.
(Added to NRS by 1987, 1257; A 1993, 2620; 1999, 1551 )
1. The corpus of all money deposited in the burial merchandise and
service trust fund must be kept unimpaired until the prepaid contract is
performed on the death of the person for whose benefit the contract was
made, or the contract is otherwise terminated and distribution or
disposition of money in the trust fund is made as authorized in
accordance with applicable law and the rights of interested persons.
2. Upon receiving a certified copy of a death certificate or a
certification by the cemetery authority that a particular prepaid
contract has been fully performed, the trustee of the burial merchandise
and service trust fund shall pay all money in the trust fund for that
contract to the cemetery authority.
3. The trustee shall not make any payments out of the trust fund
unless he receives a death certificate or certification as provided in
subsection 2. In paying out money in such circumstances, the trustee may
rely upon all such death certificates and certifications presented to him
which appear valid on their faces, and he is not liable to any person for
paying out money upon such reliance.
(Added to NRS by 1987, 1258)
1. Except as otherwise provided in subsection 2, if the buyer
moves to another geographic area beyond the normal service facilities of
the seller and performers under the prepaid burial merchandise and
service contract, the contract automatically terminates upon the buyer’s
written notice to the seller and trustee of his move and of his desire to
terminate the contract. The trustee, as soon as reasonably possible after
receipt of the notice, shall refund to the buyer all money, including
earned interest, in the trust fund held for the buyer’s account.
2. If the contract continues in force and the buyer is not in
default thereunder, upon the demise of the buyer, the contract
automatically terminates. Upon termination, the seller shall:
(a) Furnish the merchandise and perform or arrange to perform the
services;
(b) Make arrangements for the fulfillment of the agreement on a
dollar-for-dollar basis with another performer serving the area to which
the buyer has moved; or
(c) Refund to the buyer or his representative or estate, or
transfer to a substituted performer, all money, including earned
interest, in the trust fund held for the buyer’s account.
3. The cemetery authority shall include a provision in each
prepaid contract substantially stating: “If the purchaser defaults in
making any payment under this contract, the cemetery authority may
terminate the contract and is entitled to retain as damages not more than
40 percent of the total purchase price. The balance remaining, if any,
must be refunded to the purchaser.”
(Added to NRS by 1987, 1258; A 2001, 2217 )
1. An executory prepaid contract automatically terminates if the
seller or any performer under the contract goes out of business, dies,
becomes insolvent or bankrupt, makes an assignment for the benefit of
creditors or is otherwise unable to fulfill the obligations under the
contract, unless the successors or assignees of the business agree to
accept all liability and to fulfill all obligations as originally set
forth in the contract.
2. Upon any such termination, the money in the trust fund,
including earned interest, held by the trustee for the account of the
buyer must be distributed by the trustee to the buyer or to a qualified
seller or performer assuming the outstanding contractual liabilities, as
authorized by the Commissioner.
(Added to NRS by 1987, 1259; A 2001, 2217 )
1. Every seller shall keep:
(a) Accurate accounts, books and records of all transactions;
(b) Copies of all agreements and dates and amounts of payments made
and accepted;
(c) The names and addresses of the contracting parties; and
(d) The persons for whose benefit the payments are accepted and the
names of the depositories in which the payments are deposited.
2. The seller shall keep within this State, at the address shown
upon his permit, complete records of all transactions under the permit.
Those records and the affairs of the seller are subject to audit and
examination by the Commissioner at any reasonable time. Any costs
incurred by the Commissioner to conduct an audit or examination must be
paid by the seller.
3. The seller shall keep such records for not less than 5 years
after the completion of all transactions to which they relate.
(Added to NRS by 1987, 1259; A 1993, 2621)
The provisions of NRS 689.450
to 689.595 , inclusive, do not apply to a person
maintaining a cemetery but not operating as a cemetery authority on July
5, 1971.
(Added to NRS by 1987, 1259)
1. The provisions of NRS 683A.341 , 683A.451 , 683A.461 , 683A.480 and 686A.010 to 686A.310 , inclusive, apply to agents and sellers.
2. For the purposes of subsection 1, unless the context requires
that a section apply only to insurers, any reference in those sections to
“insurer” must be replaced by a reference to “agent” and “seller.”
3. The provisions of NRS 679B.230 to 679B.300 , inclusive, apply to sellers. Unless the
context requires that a provision apply only to insurers, any reference
in those sections to “insurer” must be replaced by a reference to
“seller.”
(Added to NRS by 1987, 1260; A 2001, 2218 )
MISCELLANEOUS PROVISIONS
In the absence of fraud, all money in a trust fund held or
invested in accordance with the provisions of this chapter is not liable
to attachment, garnishment or other process or to be seized, taken,
appropriated or applied to pay any debt or liability of the seller,
buyer, beneficiary or performer by any legal or equitable process or by
operation of law.
(Added to NRS by 1987, 1260)
1. A funeral director or cemetery authority that enters into a
preneed sales agreement shall, upon the death of the buyer, provide a
copy of the agreement to each person entitled to custody of the remains.
2. The Commissioner may impose upon any person who knowingly
violates the provisions of subsection 1 an administrative fine of three
times the amount of the preneed sales agreement.
(Added to NRS by 1993, 2616)
The Commissioner may adopt such
regulations as may be necessary to carry out the purposes and provisions
of this chapter.
(Added to NRS by 1971, 1402; A 1987, 1270)—(Substituted in revision
for NRS 689.405)
In addition to any other penalty provided
for in this chapter, any person who violates any provision of this
chapter or any rule or regulation promulgated pursuant to this chapter,
for which a greater penalty is not otherwise provided by law, is guilty
of a misdemeanor.
(Added to NRS by 1971, 1402)—(Substituted in revision for NRS
689.425)
