Section 832IAC7-2-7.1. Inability to perform contractual duties

  1. (a) A seller who is unable to perform its obligations under a preneed contract for any reason shall give notice to the board and to each preneed contract purchaser under the requirements of IC 30-2-13-15.

  (b) A purchaser who receives notice under subsection (a) has thirty (30) days after the date the notice was mailed to designate, under IC 30-2-13-13, a new seller to become the beneficiary of the trust or the designated recipient of the escrow funds. Should the newly designated seller consent to the designation, the original seller shall transfer the unperformed contract and funds held in trust or escrow to the newly designated seller. The newly designated seller shall perform the transferred contract. A purchaser receiving notice under IC 30-2-13-13 may not hold back or retain the right to make future delivery of any item of service or merchandise, or any cash advance item, set forth in the contract subject to transfer.

  (c) A seller who is unable to perform its obligations under a preneed contract and has not been informed by a purchaser regarding a newly designated seller within thirty (30) days of sending notice under subsection (a) shall send the board all unperformed preneed contracts for which there is no newly designated seller. The preneed contracts and all original supporting documentation shall be sent to the board within sixty (60) days after the date the notice required under subsection (a) was mailed by the seller to the purchaser.

  (d) Where a purchaser has not designated a new seller, the board shall designate a new seller, subject to acceptance by the new seller of such designation. In selecting a new seller, the board shall consider sellers in the geographic area where the preneed contract is to be performed. Each newly designated seller shall become the beneficiary of the trust or the designated recipient of the escrow funds of the purchaser.

  (e) In the event the board is required to designate a new seller, the board's action shall not limit or prohibit a purchaser from exercising the right to further designate a successor seller of the purchaser's choosing under IC 30-2-13-13.

  (f) A seller who is unable to perform its obligations under a preneed contract and fails to discharge its responsibilities under IC 30-2-13-15 and this rule may be subject to criminal and civil penalties, as provided by IC 30-2-13-38. (State Board of Funeral and Cemetery Service; 832 IAC 7-2-7.1; filed Mar 11, 2013, 2:50 p.m.: 20130410-IR-832120198FRA; readopted filed Nov 25, 2013, 9:23 a.m.: 20131225-IR-832130288RFA)