10.29.15 Family Security Trust Fund Flashcards
This chapter governs the collection of fees from licensed funeral establishments for claimants to recover compensation from the Family Security Trust Fund for an actual pre-need trust fund loss that occurred in this State due to theft, embezzlement, false pretenses, forgery, fraud, or misrepresentation by a licensed mortician, funeral director, or holder of a surviving spouse license.
10.29.15.01 Scope
A.
This chapter applies to all preneed contracts entered into by a licensed mortician, funeral director, or a holder of a surviving spouse license with a buyer, including those preneed contracts arranged on behalf of a holder of a corporate license.
10.29.15.01 Scope
B.
A committee comprised of three Board members and a representative from both of the trade associations which is assisted by Board Counsel provided by the Attorney General’s Office and Board Administrative personnel to administer the Fund.
Advisory Committee
The Maryland State Board of Morticians and Funeral Directors
Board
A request filed in writing, under oath, with supporting documentation by a claimant to obtain compensation from the Family Security Trust Fund for a preneed trust fund loss as a result of malfeasance, default, failure, or insolvency of any licensee under Health Occupations Article 7-4A-06, Annotated Code of Maryland.
Claim
An individual or legal representative of that individual, or any other individual who on behalf of themselves or any other individual failes a claim for loss.
Claimant
Means a public record issued by the Board resolving a contested case either by consent or after an adjudication, which includes findings of fact, conclusions of law, and a disposition which:
- Denies a license;
- Sanctions by reprimand, probation, fine, or suspension or revocation of a license;
- Summarily suspends a license;
- Dismisses charges;
- Surrenders a license; or
- Takes any other action that the Board may do by law.
Final Order
The Family Security Trust Fund, a special, nonlasping, interest bearing account.
Fund
An agreement entered into by a licensed mortician, a licensed funeral director, or a holder of a surviving spouse license with a buyer in advance of the death of that individual or beneficiary.
Preneed Contract
A licensed mortician, licensed funeral director, or holder of a surviving spouse license who agrees to sell certain mortuary science services or merchandise in a contractual arrangement between a buyer and a funeral establishment.
Seller
A licensed funeral establishment may not be exempt from the fees outlined in this regulation.
10.29.15.03 Mandatory Fees
A.
The Board shall send out fee notices to the licensed establishments via first class main by September 1.
10.29.15.03 Mandatory Fees
B.
Annual payments shall be due on November 30 of every year. All active licensed establishments shall be required to pay a fee of $375 to the Family Security Trust Fund.
10.29.15.03 Mandatory Fees
C.
A late fee of $500 will be assessed on December 1 for any licensed establishment that is deliquent in paying the mandatory contribution to the Fund.
10.29.15.03 Mandatory Fees
D.
If the establishment does not pay the mandatory fee by December 30, the Committee shall refer the delinquent establishments to the Board for formal action.
10.29.15.03 Mandatory Fees
E.
The Board shall assess a $40 fee for returned checks.
10.29.15.03 Mandatory Fees
F.
A licensee is not entitled to a refund of its contribution to the Fund.
10.29.15.03 Mandatory Fees
G.
