Part VI. Funding
18VAC65-30-100. Finance charges prohibited.
A licensee shall not charge finance charges on a preneed arrangement.
Statutory Authority
§§ 54.1-2400, 54.1-2803(10) and 54.1-2820 of the Code of Virginia.
Historical Notes
Derived from VR320-01-3 § 6.1, eff. March 1, 1991; amended, Virginia Register Volume 9, Issue 22, eff. August 25, 1993; Volume 11, Issue 14, eff. May 3, 1995.
18VAC65-30-110. Cancellation or transfer of contract.
A. Any person who makes payment under this contract may terminate the agreement at any time prior to the time for which the services or supplies are furnished.
B. If the contract buyer terminates the contract within 30 days of the execution of the contract, the contract buyer shall be refunded all consideration paid or delivered and any interest or income accrued on it.
C. If the contract buyer uses a revocable trust as the funding source and terminates the contract after 30 days of the execution of the contract, the contract buyer shall be refunded:
1. All consideration paid or delivered on nonguaranteed items;
2. At least 90% of all consideration paid for guaranteed items; and
3. All interest or income accrued on it.
D. If the contract buyer uses an irrevocable trust as the funding source, the contract buyer is not able to cancel the trust after 30 days following its execution except in accordance with §§ 64.2-729 and 64.2-730 of the Code of Virginia.
E. The contract buyer shall have the right to change the contract provider and the trustee at any time prior to the furnishing of the services or supplies contracted for under the preneed contract.
Statutory Authority
§§ 54.1-2400 and 54.1-2803 of the Code of Virginia.
Historical Notes
Derived from VR320-01-3 § 6.2, eff. March 1, 1991; amended, Virginia Register Volume 9, Issue 22, eff. August 25, 1993; Volume 11, Issue 14, eff. May 3, 1995; Volume 15, Issue 7, eff. January 20, 1999; Volume 29, Issue 3, eff. November 23, 2012; Volume 37, Issue 12, eff. March 3, 2021.
18VAC65-30-120. Escrow account.
Within five banking days after the day of receipt of any money from the contract buyer and until the time the money is invested in a trust, life insurance, or annuity policy, the contract seller or the contract provider shall deposit the money into an escrow account in a bank or savings institution approved to do business in the Commonwealth.
Statutory Authority
§§ 54.1-2400, 54.1-2803 and 54.1-2820 of the Code of Virginia.
Historical Notes
Derived from VR320-01-3 § 6.3, eff. March 1, 1991; amended, Virginia Register Volume 9, Issue 22, eff. August 25, 1993; Volume 11, Issue 14, eff. May 3, 1995; Volume 15, Issue 7, eff. January 20, 1999.
18VAC65-30-130. Real estate.
When the consideration consists in whole or in part of any real estate, the following shall occur:
1. The preneed contract shall be recorded as an attachment to the deed whereby the real estate is conveyed; and
2. The deed shall be recorded in the clerk's office in the circuit court of the city or county in which the real estate being conveyed is located.
Statutory Authority
§§ 54.1-2400, 54.1-2803(10) and 54.1-2820 of the Code of Virginia.
Historical Notes
Derived from VR320-01-3 § 6.4, eff. March 1, 1991; amended, Virginia Register Volume 9, Issue 22, eff. August 25, 1993; Volume 11, Issue 14, eff. May 3, 1995.
18VAC65-30-140. Personal property.
When the consideration consists in whole or in part of any personal property, the following shall occur:
1. Personal property shall be transferred by:
a. Actual delivery of the personal property; or
b. Transfer of the title to the personal property.
2. Within 30 days of receiving the personal property or the title to the personal property, the licensee or person delivering the property shall:
a. Execute a written declaration of trust setting forth the terms, conditions, and considerations upon which the personal property is delivered; and
b. Record the trust agreement in the clerk's office of the circuit court of the locality in which the person delivering the property is living; or
c. Record the preneed contract in the clerk's office of the circuit court of the locality in which the person delivering the property or trust agreement is living provided that the preneed contract sets forth the terms, conditions, and considerations of the trust.
Statutory Authority
§§ 54.1-2400, 54.1-2803 and 54.1-2820 of the Code of Virginia.
Historical Notes
Derived from VR320-01-3 § 6.5, eff. March 1, 1991; amended, Virginia Register Volume 9, Issue 22, eff. August 25, 1993; Volume 11, Issue 14, eff. May 3, 1995; Volume 15, Issue 7, eff. January 20, 1999.
18VAC65-30-150. (Repealed.)
Historical Notes
Derived from VR320-01-3 §§ 6.6 and 6.7, eff. March 1, 1991; amended, Virginia Register Volume 9, Issue 22, eff. August 25, 1993; Volume 11, Issue 14, eff. May 3, 1995; repealed, Virginia Register Volume 15, Issue 7, eff. January 20, 1999.
18VAC65-30-170. Trust accounts.
If funds are to be trusted, the trust account is to be established according to provisions of §§ 54.1-2822 and 54.1-2824 of the Code of Virginia and the following information shall be disclosed in writing to the contract buyer:
1. The amount to be trusted;
2. The name of the trustee;
3. The disposition of the interest;
4. The fees, expenses, and taxes which may be deducted from the interest;
5. Whether up to 10% is retained by the contract provider; and
6. A statement of the contract buyer's responsibility for taxes owed on the interest.
Statutory Authority
§§ 54.1-2400, 54.1-2803 and 54.1-2820 of the Code of Virginia.
Historical Notes
Derived from VR320-01-3 § 6.8, eff. March 1, 1991; amended, Virginia Register Volume 9, Issue 22, eff. August 25, 1993; Volume 11, Issue 14, eff. May 3, 1995; Volume 15, Issue 7, eff. January 20, 1999.
18VAC65-30-180. Life insurance or annuity.
If a life insurance or annuity policy is used to fund the preneed funeral contract, the contract shall be in compliance with provisions of §§ 38.2-3100.3 and 54.1-2820 C of the Code of Virginia and shall contain the following information:
1. Name of the contract provider;
2. Name and funeral license number of contract seller;
3. Place of employment of contract seller;
4. Name of insurance agent and agent's insurance license number;
5. Insurance agent's employer and insurance company represented by insurance agent; and
6. Identification as to whether the insurance agent is a funeral service licensee and, if so, the funeral service license number.
Statutory Authority
§§ 54.1-2400 and 54.1-2803 of the Code of Virginia.
Historical Notes
Derived from VR320-01-3 § 6.9, eff. March 1, 1991; amended, Virginia Register Volume 9, Issue 22, eff. August 25, 1993; Volume 11, Issue 14, eff. May 3, 1995; Volume 15, Issue 7, eff. January 20, 1999; Volume 25, Issue 17, eff. July 1, 2009; Volume 37, Issue 12, eff. March 3, 2021.
18VAC65-30-190. (Repealed.)
Historical Notes
Derived from VR320-01-3 § 7.1, eff. March 1, 1991; amended, Virginia Register Volume 9, Issue 22, eff. August 25, 1993; Volume 11, Issue 14, eff. May 3, 1995; repealed, Virginia Register Volume 15, Issue 7, eff. January 20, 1999.