12-1102 Terms, defined.
12-1102. Terms, defined.Forpurposes of the Burial Pre-Need Sale Act, unless the context otherwise requires:(1) Agent shall mean any person who acts for or on behalf of a pre-needseller in making pre-need sales;(2) Burial or funeral merchandise or services shall mean all items ofreal or personal property or a combination of both or services, sold or offeredfor sale to the general public by any pre-need seller, which may be used inany manner in connection with a funeral or the interment, entombment, inurnment,or other alternate disposition of human remains. Such term shall not includea lot or grave space or a crypt or niche located in a mausoleum, columbarium,or lawn crypt upon which construction has been substantially completed;(3) Columbarium shall mean an aboveground structure or building whichis used or intended to be used for the inurnment of human remains in a niche.A columbarium may be combined with a mausoleum;(4) Crypt or niche shall mean a chamber in a lawn crypt, columbarium,or mausoleum of sufficient size to inter or entomb cremated or noncrematedhuman remains;(5) Delivery shall mean the act of performing the service required byor the act of placing the item purchased in the physical possession of thepre-need purchaser, including, but not limited to, the installing or depositingof the item sold on or in real property owned by or designated by the personentitled to receive such item, except that (a) the pre-need burial of a vaultshall constitute delivery only if the burial is with the consent of the pre-needpurchaser and the pre-need seller has made other pre-need vault burials priorto January 1, 1986, and (b) delivery of a crypt or niche in a mausoleum, lawncrypt, or columbarium or a marker or monument may be accomplished by deliveryof a document of title;(6) Department shall mean the Department of Insurance;(7) Director shall mean the Director of Insurance;(8) Document of title shall mean a deed, bill of sale, warehouse receipt,or any other document which meets the following requirements:(a) The effect of the document is to immediately vest the ownershipof the item described in the person purchasing the item;(b) The document states the exact location of such item; and(c) The document gives assurances that the item described exists insubstantially completed form and is subject to delivery upon request;(9) Human remains shall mean the body of a deceased person;(10) Lawn crypt shall mean an inground burial receptacle of single ormultiple depth, installed in multiples of ten or more in a large mass excavation,usually constructed of concrete and installed on gravel or other drainageunderlayment and which acts as an outer container for the interment of humanremains;(11) Letter of credit shall mean an irrevocable undertaking issued byany financial institution which qualifies as a trustee under the Burial Pre-NeedSale Act, given to a pre-need seller and naming the director as the beneficiary,in which the issuer agrees to honor drafts or other demands for payment bythe beneficiary up to a specified amount;(12) Lot or grave space shall mean a space in a cemetery intended tobe used for the inground interment of human remains;(13) Marker, monument, or lettering shall mean an object or method usedto memorialize, locate, and identify human remains;(14) Master trust agreement shall mean an agreement between a pre-needseller and a trustee, a copy of which has been filed with the department,under which proceeds from pre-need sales may be deposited by the pre-needseller;(15) Mausoleum shall mean an aboveground structure or building whichis used or intended to be used for the entombment of human remains in a crypt.A mausoleum may be combined with a columbarium;(16) Pre-need purchaser shall mean a member of the general public purchasingburial or funeral merchandise or services or a marker, monument, or letteringfrom a pre-need seller for personal use;(17) Pre-need sale shall mean any sale by any pre-need seller to a pre-needpurchaser of:(a) Any items of burial or funeral merchandise or services which arenot purchased for the immediate use in a funeral or burial of human remains;(b) Any unspecified items of burial or funeral merchandise or serviceswhich items will be specified either at death or at a later date; or(c) A marker, monument, or lettering which will not be delivered withinsix months of the date of the sale;(18) Pre-need seller shall mean any person, partnership, limited liabilitycompany, corporation, or association on whose behalf pre-need sales are madeto the general public;(19) Substantially completed shall mean that time when the mausoleum,columbarium, or lawn crypt being constructed is then ready for the interment,entombment, or inurnment of human remains;(20) Surety bond shall mean an undertaking given by an incorporatedsurety company naming the director as the beneficiary and conditioned uponthe faithful performance of a contract for the construction of a mausoleum,columbarium, or lawn crypt by a pre-need seller;(21) Trust account shall mean either a separate trust account establishedpursuant to the Burial Pre-Need Sale Act for a specific pre-need purchaserby a pre-need seller or multiple accounts held under a master trust agreementwhen it is required by the act that all or some portion of the proceeds ofsuch pre-need sale be placed in trust by the pre-need seller;(22) Trustee shall mean a bank, trust company, building and loan association,or credit union within the state whose deposits or accounts are insured or guaranteed by the FederalDeposit Insurance Corporation or the National Credit Union Share InsuranceFund;(23) Trust principal shall mean all deposits, including amounts retainedas required by section 12-1114, made to a trust account by a pre-need sellerless all withdrawals occasioned by delivery or cancellation; and(24) Vault shall mean an item of burial or funeral merchandise or serviceswhich is an inground burial receptacle installed individually, as opposedto lawn crypts, which is constructed of concrete, steel, or any other material,and which acts as an outer container for the interment of human remains. SourceLaws 1986, LB 643, § 2; Laws 1992, LB 757, § 13; Laws 1993, LB 121, § 126; Laws 1999, LB 107, § 1; Laws 2003, LB 131, § 19; Laws 2009, LB259, § 2.