54.1-2822 - Deposit of money received pursuant to preneed funeral contract.
§ 54.1-2822. Deposit of money received pursuant to preneed funeral contract.
A. Within 30 days following the receipt of any money paid pursuant to anypreneed funeral contract or interest or income accrued thereon, unless suchamounts are paid to fund either an annuity or an insurance policy which willbe used to purchase the funeral supplies or services contracted for, theperson receiving such amounts shall deposit all consideration paid pursuantto the terms of a preneed funeral contract in which the price of the suppliesand services is not guaranteed, or ninety percent of all consideration paidpursuant to the terms of a preneed funeral contract in which the price of thesupplies and services is guaranteed, in a special account in a bank orsavings institution doing business in this Commonwealth.
B. The funds shall be deposited in separate, identifiable trust accountssetting forth the names of the depositor, the trustee for the person who isthe subject of the contract, the name of the person who will render thefuneral services and the name of the person who is the subject of thecontract. The purchaser shall have the right to change the beneficiary andtrustee of the trust at any time prior to the furnishing of the services orsupplies contracted for under the preneed funeral contract. Trust accountrecords shall be subject to examination by the Board.
C. No funeral director, embalmer, funeral service licensee, owner of afuneral establishment, or any person employed by or having an interest in afuneral establishment shall serve as trustee of a trust account for which anysuch person, or any funeral establishment owned by or employing such personor in which such person has an interest, has been named the beneficiary ordesignated the provider of services, unless two or more such persons arenamed and serve as trustees and are required to act jointly in such fiduciarycapacity. Subject to the terms of this subsection, and notwithstanding anyother provision of law, the trustee for any such trust account may be anincorporated association that is authorized to sell burial association grouplife insurance certificates in the Commonwealth, as described in thedefinition of limited burial insurance authority in § 38.2-1800, whoseprincipal purpose is to assist its members in (i) financial planning fortheir funerals and burials and (ii) obtaining insurance for the payment, inwhole or in part, for funeral, burial, and related expenses.
(1989, c. 684; 1992, c. 337; 2007, c. 621.)