(a) Except as provided in Sections 34-13-171 and 34-13-195, every preneed contract shall require the monies paid to the seller or trustee to be placed in trust in accordance with Division 3, for funeral merchandise and services sold by funeral establishments or third party sellers, or Division 4, for cemetery merchandise and services sold by cemetery authorities.
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Terms Used In Alabama Code 34-13-194

  • Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
  • Contract: A legal written agreement that becomes binding when signed.
  • Trustee: A person or institution holding and administering property in trust.
(b) Although this chapter does not apply to preneed contracts entered into prior to May 1, 2002, a preneed provider which contends that a preneed trust fund which was in effect prior to May 1, 2002, complies with this chapter with respect to the contracts entered into prior to May 1, 2002, may provide to the board documentary proof thereof. Upon the board determining that compliance has been established, the pre-existing preneed trust fund assets may be merged with or into the trust fund required under this chapter or continued as the trust fund and that determination by the board shall be noted on the certificate of authority, and thereafter all preneed contracts covered by the trust fund, including those entered into prior to May 1, 2002, shall be subject to this chapter.
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