18VAC47-20-210: Preneed trust fund and bonding requirements

A. Each licensed cemetery company must establish a preneed trust fund and make deposits in accordance with § 54.1-2325 of the Code of Virginia.

B. If the trustee for the preneed trust fund is not a Virginia trust company or trust subsidiary or a federally insured bank or savings institution doing business in the Commonwealth, the trustee must be approved by the board and must deposit a fidelity bond with the board in accordance with § 54.1-2326 of the Code of Virginia.

C. Deposits into the fund must be made in accordance with § 54.1-2325 of the Code of Virginia.

D. All funds must be handled in accordance with §§ 54.1-2329 through 54.1-2331 of the Code of Virginia.

E. Each licensed cemetery company must submit a written financial report regarding preneed trust accounts to the board as prescribed by § 54.1-2333 of the Code of Virginia.

F. Transfer of funds to another trustee must be done in accordance with § 54.1-2337 of the Code of Virginia.