Preneed License; Financial Requirements

 

DEPARTMENT OF FINANCIAL SERVICES

Division of Funeral, Cemetery, and Consumer Services

RULE NO.:RULE TITLE:

69K-5.0016Preneed License; Financial Requirements

NOTICE OF CHANGE

Notice is hereby given that the following changes have been made to the proposed rule in accordance with subparagraph 120.54(3)(d)1., F.S., published in Vol. 44 No. 111, June 7, 2018 issue of the Florida Administrative Register.

The changes are in response to written comments submitted by the staff of the Joint Administrative Procedures Committee in a letter dated June 19, 2018. The changes are as follows:

 

69K-5.0016 Preneed License; Financial Requirements.

(1) No change.

(2) A Preneed Licensee or applicant must meet and maintain the following requirements on an annual basis, demonstrating its ability to discharge its liabilities as they become due in the normal course of business and must have sufficient funds available to perform its obligation under its existing preneed contracts.

(a) A Preneed Licensee or applicant must submit its most recent year-end financial statements (including a balance sheet and income statement) with the Preneed License application and annually thereafter as provided in Section 497.453(1), F.S. The financial statements must be prepared in accordance with generally accepted accounting principles (GAAP) as those principles have been defined by the Florida Board of Accountancy in Chapter 61H1-20, F.A.C. If the applicant does not have the minimum net worth as set forth in paragraph (2)(b) section three (3) or lacks sufficient liquid assets to satisfy current liabilities or does not appear to have any substantial long-term assets, the Department shall request additional financial information concerning financial statements and the statement of cash flows.

(b) and (c) No change.

(3) If the Preneed Licensee or applicant does not meet the financial requirements in paragraph (2)(b) subsection (3) above, the entity may voluntarily submit to the Board additional evidence or agree to additional oversight as to its meeting the requirements of subsection (2)(1) above and as a condition of receiving and retaining a Preneed License. Such additional evidence or oversight agreement shall include as appropriate:

(a) through (k) No change.

Upon the Board’s review of such additional information or agreements, submitted as stated above, the Board shall issue a Preneed License if such information or agreement results in the Board determining that the applicant or preneed license meets the requirements of Sections 497.452 and 497.453, F.S.

(4) As to all new applicants, this rule will become effective 20 days after filing with the Department of State. As to renewals of existing Preneed Licenses, this rule will become effective on April 1, 2001.

Rulemaking Authority 497.103 FS. Law Implemented 497.452, 497.453 FS. History–New 5-21-95, Amended 12-7-98, 10-18-99, 12-12-00, 6-26-02, Formerly 3F-5.0016,           .

 

THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE IS: Ellen Simon, Assistant Director, Division of Funeral, Cemetery, and Consumer Services, Department of Financial Services, 200 East Gaines Street, Tallahassee, Florida 32399-0361, [phone], Ellen [e-mail].