§ 1267. Keeping of Preneed Books, Accounts, Contracts, and Records.
16 CA ADC § 1267Barclays Official California Code of RegulationsEffective: February 9, 2023
Effective: February 9, 2023
16 CCR § 1267
§ 1267. Keeping of Preneed Books, Accounts, Contracts, and Records.
Each funeral establishment charged with the reporting of preneed funds hereunder shall at all times maintain or cause the trustee of the preneed trust to maintain in California and available for inspection by the bureau during reasonable working hours, complete financial records of all preneed contracts and arrangements, which records shall be established and maintained in accordance with generally accepted accounting principles. Such records shall include the following, provided, however, that records may otherwise be established and maintained in accordance with generally accepted accounting principles:
(b) An individual trustor or beneficiary ledger account which shall set forth the amount of the contract, all payments received, all disbursements made, and all income prorated in accordance with the ratio which the trust corpus of the account bears to the entire corpus invested as set forth in Section 1265.
(c) For a licensed successor funeral establishment that has accepted the transfer of preneed contracts and arrangements from another funeral establishment pursuant to Section 7737(c)(1) of the Code, a copy of the written notice to all beneficiaries, trustors, legal representatives of the beneficiaries or trustors, and trustees (“consumers”) associated with the preneed funeral agreements required by Section 7737.1(a)(4)(B) of the Code and proof the notice was provided as defined in Section 1267.1.
(f) In the case where a checking account is used to deposit payments received or disbursements to the funeral establishment and/or the funeral director, a trustor, or an investment, it shall be designated as a trust fund account, and be reported as such. It shall be reconciled each month with the balance shown in the trust account by accounting for checks not yet presented and outstanding, bank deposits not shown on the bank statements, and other adjustments required.
(l) All of the foregoing records shall be retained for a period of one (1) year after the account has been canceled, serviced, or escheated and audited by the bureau and compliance with all recommendations made and audit exceptions resolved or seven (7) years from the date of service, cancellation, or escheatment, whichever comes first.
The required books and records for more than one (1) licensed funeral establishment may be centrally maintained at a single location in California with notification to the bureau or the main office as defined in Section 1204(c)(2), provided that a monthly summary of all financial transactions pertaining to each individual trust account for each licensed funeral establishment is available, at each such establishment during reasonable working hours, to the bureau or its authorized representatives; and provides further that the monthly summary contains sufficient information from which the current balance of each individual trustor's account or each individual trustor's share of any commingled trust account may be identified.
Credits
Note: Authority cited: Sections 7606 and 7740, Business and Professions Code. Reference: Sections 7735, 7737 and 7740, Business and Professions Code.
History
1. Amendment filed 7-3-80; effective thirtieth day thereafter (Register 80, No. 27). For prior history, see Register 72, No. 9; and 77, No. 25.
2. Amendment file 7-3-86; effective thirtieth day thereafter (Register 86, No. 27).
3. Amendment of first paragraph, subsections (d) and (e), and last paragraph filed 10-31-97; operative 11-30-97 (Register 97, No. 44).
4. Change without regulatory effect amending first paragraph and subsections (f) and (j) filed 9-22-2011 pursuant to section 100, title 1, California Code of Regulations (Register 2011, No. 38).
5. Amendment of section heading and section filed 2-9-2023; operative 2-9-2023 pursuant to Government Code section 11343.4(b)(3) (Register 2023, No. 6).
This database is current through 4/19/24 Register 2024, No. 16.
Cal. Admin. Code tit. 16, § 1267, 16 CA ADC § 1267
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