(a) The board, as often as deemed necessary, shall examine the business of any person writing, or holding himself or herself out to be writing, preneed contracts under this chapter to the extent applicable. The examination shall be made by designated representatives employed or contracted by the board.
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Terms Used In Alabama Code 34-13-196

  • circuit: means judicial circuit. See Alabama Code 1-1-1
  • Complaint: A written statement by the plaintiff stating the wrongs allegedly committed by the defendant.
  • person: includes a corporation as well as a natural person. See Alabama Code 1-1-1
  • writing: includes typewriting and printing on paper. See Alabama Code 1-1-1
(b) The written report of each examination, when completed, shall be filed in the office of the board and, when so filed, shall not constitute a public record.
(c) Any person being examined shall produce, upon request, all records of the person. The designated representative of the board may at any time examine the records and affairs of the person, whether in connection with a formal examination or not.
(d) The board shall waive the examination requirements of this section if the certificate holder submits audited financial statements. Upon receipt of a verifiable complaint, the board may perform a target market conduct examination as a part of an investigation.
(e) The person examined shall pay the examination expenses, travel expense, and per diem subsistence allowance provided for examiners and incurred by the board’s representatives or examiners in connection with an examination as prescribed by rule of the board.
(f) Whenever any special examination of the premises, facilities, books, or records of a licensee is necessary based on the failure of the licensee to comply with this chapter or rule adopted by the board, the board shall charge a fee based on the cost of the special examination including, but not limited to, the prorated compensation of board employees involved in the special examination and any expenses incurred.
(g) If the board finds that a certificate of authority holder or licensee has failed to operate in accordance with this chapter and, by their action, has created a deficit of preneed funds entrusted to them by the consumer, then the board may:

(1) Bring an action for injunctive relief against the responsible licensee or the holder of the certificate of authority in the Circuit Court of Montgomery County.
(2) Issue an emergency suspension of all licenses held by the holder of the certificate of authority, and its associated personnel, in accordance with the Administrative Procedure Act.
(3) Take any other disciplinary action authorized by this chapter.
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