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Urgent News Regarding Preneed Application Renewals

Penalties for Late Preneed Applications for Renewal

Contact: Insurance Department

(334)269-3550

3/26/2003

Alabama Code Section 27-17A-11(h) states “In addition to any other penalty that may be provided for under this article, the commissioner may levy a fine not to exceed fifty dollars ($50) per day for each day the certificate holder fails to file its annual statement, and the commissioner may levy a fine not to exceed fifty dollars ($50) per day for each day the certificate holder fails to file the statement of activities of the trust.  Upon notice to the certificate holder by the commissioner that the certificate holder has failed to file the annual statement or the statement of activities of the trust, the certificate holder’s authority to sell preneed contracts shall cease while the default continues.”

 

In accordance with Alabama Code Section 27-17A-11(h), for any renewal application that is not complete and that is postmarked after April 1, 2003, the commissioner will levy a fine of $50 per day for each day after April 1, 2003 to the date of the postmark (including the date of the postmark), with the total fine not to exceed $250.00.  As an example, for a renewal application postmarked April 4, 2003, the penalty would be $50.00 per day for 3 days or a total of $150.00.