{"data":{"id":"us-ky/krs-367.942","jurisdiction":"us-ky","citation":"KRS 367.942","heading":"Records of licensee -- Examination by Attorney General.","body":"(1) Every licensee shall keep and maintain adequate records including but not limited to\nthe following:\n(a) A cash receipts journal listing moneys received in chronological order, dates,\nand amounts received, and identification of the payor or purchaser;\n(b) A cash disbursement journal containing the same information for moneys\ndisbursed. If a separate bank account is kept exclusively for any such funds,\nthe checkbook could be used as a cash disbursement journal;\n(c) A \"reconciliation\" done at least once every twelve (12) months. The\nreconciliation shall indicate the beginning balance in the trust account,\npayments received during the period, interest earned during the period,\ndisbursements on either cancellation or the death of the beneficiary, and the\nending b alance for the period. The ending balance for each period is\ndetermined as follows:\nBeginning Balance\n+ Payments received\n+ Interest\n- Disbursements\nEnding Balance;\n(d) Documentation files supporting the reconciliation and containing the preneed\nburial contract. Each file, consisting of a separate file for each contract, should\ninclude the name and address of the purchaser, the beneficiary, and the\nfinancial institution in which the trust funds were deposited. Passbooks,\ncertificates, and other ev idence of the account with the financial institution\nshould be kept with the individual files, depending on the safety and security\nof the files; and\n(e) A certified copy of a verification of death, issued by the state registrar of the\nVital Statistics Bra nch or its successor agency as authorized by KRS Chapter\n213, or a provisional certificate of death as described in KRS 213.076, upon\nthe death of each person for whose service funds were paid to the licensee by\nthe trustee under a preneed burial contract.\n(2) All sales, trust fund, and accounting records of the agent licensee shall be readily\navailable at the agent's principal place of business in this state at reasonable times\nfor examination by an authorized representative of the Attorney General's office.\n(3) The necessary expenses of any examination made pursuant to this section shall be\npaid by the licensee, but in no case shall the Attorney General or his or her\nauthorized representatives be paid more than the actual expenses of such\nexamination not to exceed the lesser of the following amounts: one hundred dollars\n($100) per day for each auditor or five dollars ($5) for each agent's sales contract\nexamined. The agent may pay for this expense using interest moneys which have\naccrued on the agent's existing preneed funeral trust fund accounts. Any withdrawal\nof interest for this purpose shall be taken as a pro rata share of all of the agent's\nexisting preneed funeral trust fund accounts. The Attorney General shall be advised\nin writing by the agent when interest moneys is the source of payment and shall\nreceive written certification from the financial institution or agent that the\nwithdrawal was a pro rata share.\n(4) This section shall apply to examinations of all preneed funeral contracts whether\nentered into prior to or after July 13, 1984.","path":["KRS Chapter 367"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=35118","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:59:06Z","sha256":"b6c395004ea28d79451cc6b5473b80fe8f6284624de3c1cfd722298e226a04a8","source_id":"us-ky","stale":false,"prev":"us-ky/krs-367.940","next":"us-ky/krs-367.944"},"notice":"GroundRules: Original legal text. Not legal advice."}