Section 832IAC8-1-4. Board approval of disbursement

   2(a) The board shall determine to its satisfaction that the seller does not possess the financial means to deliver or provide the prepaid services or merchandise based on a review of any of the following:

(1) A disciplinary proceeding against the seller or other licensee under IC 25-1-11.

(2) Bankruptcy proceedings.

(3) Whether the seller has been acquired by a successor who by law has assumed the obligations of the seller, including the preneed funeral contracts.

(4) Trust or escrow accounts held by or entered into by the seller.

(5) Assets held by the seller.

  (b) Disbursements from the preneed consumer protection fund shall be determined after consideration of the following additional criteria:

(1) Whether the seller was licensed to sell preneed services under IC 30-2-13-33 when the contract was entered into.

(2) Whether adequate funds in the preneed consumer protection fund are available.

(3) Whether the requestor of restitution was required to obtain services and merchandise other than from the seller of the preneed contract.

(4) Whether the losses are not otherwise covered, protected, or reimbursable.

(5) Whether the requestor is eligible for or seeking reimbursement from a judgment or other right as a result of criminal or civil litigation.

(6) Whether credit for merchandise delivered or resources still existing in the trust or escrow must be subtracted from the amount of restitution.

  (c) Restitution from the preneed consumer protection fund is not available for any of the following:

(1) Defective merchandise or costs associated with reopening a grave in order to take corrective action on defective merchandise.

(2) Services or merchandise not included in the original preneed contract.

(3) Court costs or other fees associated with the original preneed contract.

(State Board of Funeral and Cemetery Service; 832 IAC 8-1-4; filed Mar 11, 2013, 2:50 p.m.: 20130410-IR-832120198FRA)