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Cease & Desist Notice

Alabama Preneed Funeral & Cemetery Act

Contact: Vincent Ledlow

(334)241-4199

5/2/2002

As you know, the Alabama Preneed Funeral and Cemetery Act (the "Act") became effective May 1, 2002. Pursuant to the Act, no funeral director, funeral establishment, or cemetery authority can sell funeral or cemetery merchandise or services preneed without first having obtained a certificate of authority from the Commissioner of the Alabama Department of Insurance. In addition, any individual who engages in the sale of preneed funeral or cemetery merchandise or services must be registered with the Department of Insurance as a preneed sales agent. All forms necessary for compliance with the Act can be obtained from the Department's website. The Act requires certain forms used in preneed sales be approved by the Department. The Act also requires holders of preneed certificates of authority to deposit certain percentages of funds received from preneed sales into approved trusts or otherwise provide the Department with security for the performance of the certificate holder’s obligations under preneed contracts.

Violations of the Act can be punished by, among other things, a fine of up to $10,000.00 per willful violation. Because the Department considers any violation of the Act to be significant, preneed sales consummated in violation of the Act will be considered willful violations of the law, and the Department will seek to impose the maximum penalty for such violations against any individual or entity violating the terms of the Act.

This notice is being provided to any and all individuals or entities who or which have not obtained certificates of authority, who have not registered as preneed sales agents, or who or which are not otherwise in compliance with all the Act's provisions. You are hereby notified to CEASE and DESIST from any and all activities that violate the Act's provisions. The failure to do so may subject you to civil and criminal penalties. If you are aware of any entity or individual engaging in conduct that violates the Act, you are encouraged to report such violations to the Department.