367.942 Records of licensee -- Examination by Attorney General.
496 words·~2 min read·
/ky/chapter-367/367-942A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(1)Every licensee shall keep and maintain adequate records including but not limited to
the following:
(a)A cash receipts journal listing moneys received in chronological order, dates,
and amounts received, and identification of the payor or purchaser;
(b)A cash disbursement journal containing the same information for moneys
disbursed. If a separate bank account is kept exclusively for any such funds,
the checkbook could be used as a cash disbursement journal;
(c)A "reconciliation" done at least once every twelve
(12)months. The
reconciliation shall indicate the beginning balance in the trust account,
payments received during the period, interest earned during the period,
disbursements on either cancellation or the death of the beneficiary, and the
ending balance for the period. The ending balance for each period is
determined as follows:
Beginning Balance
+ Payments received
+ Interest
- Disbursements
Ending Balance;
(d)Documentation files supporting the reconciliation and containing the preneed
burial contract. Each file, consisting of a separate file for each contract, should
include the name and address of the purchaser, the beneficiary, and the
financial institution in which the trust funds were deposited. Passbooks,
certificates, and other evidence of the account with the financial institution
should be kept with the individual files, depending on the safety and security
of the files; and
(e)A certified copy of a verification of death, issued by the state registrar of the
Vital Statistics Branch or its successor agency as authorized by KRS Chapter
213, or a provisional certificate of death as described in KRS 213.076, upon
the death of each person for whose service funds were paid to the licensee by
the trustee under a preneed burial contract.
(2)All sales, trust fund, and accounting records of the agent licensee shall be readily
available at the agent's principal place of business in this state at reasonable times
for examination by an authorized representative of the Attorney General's office.
(3)The necessary expenses of any examination made pursuant to this section shall be
paid by the licensee, but in no case shall the Attorney General or his or her
authorized representatives be paid more than the actual expenses of such
examination not to exceed the lesser of the following amounts: one hundred dollars
($100) per day for each auditor or five dollars ($5) for each agent's sales contract
examined. The agent may pay for this expense using interest moneys which have
accrued on the agent's existing preneed funeral trust fund accounts. Any withdrawal
of interest for this purpose shall be taken as a pro rata share of all of the agent's
existing preneed funeral trust fund accounts. The Attorney General shall be advised
in writing by the agent when interest moneys is the source of payment and shall
receive written certification from the financial institution or agent that the
withdrawal was a pro rata share.
(4)This section shall apply to examinations of all preneed funeral contracts whether
entered into prior to or after July 13, 1984.