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23-40-106. Violations — Penalties.
Arkansas Code — all titles (historical 2020) · legal_authorities
23-40-106. Violations — Penalties.
(a)(1) An officer, director, agent, or employee of an organization subject to this chapter who makes, or attempts to make, a contract in violation of this chapter, or refuses to allow an inspection of the organization's records shall be punished by a fine of not less than one thousand dollars ($1,000) and not more than ten thousand dollars ($10,000), or by imprisonment in the county jail for at least six (6) months and not more than twelve (12) months, or by both fine and imprisonment.
(2)(A) An officer, director, agent, or employee of an organization is guilty of a Class D felony if the officer, director, agent, or employee:
(i) Collects contract proceeds on cash-funded prepaid funeral contracts and fails to deposit the proceeds with a trustee as required under § 23-40-114; or
(ii) Collects proceeds on insurance-funded or annuity-funded contracts, or both, and fails to forward the proceeds to the insurance company or the third-party administrator within twenty (20) business days.
(B) A person convicted of a violation of § 23-40-114 shall be ordered to pay restitution to persons aggrieved by the violation.
(C) Restitution shall be ordered in addition to a fine or imprisonment.
(b) Each violation of any provision of this chapter shall be deemed a separate offense and prosecuted individually.
(c) The Criminal Investigation Division shall have jurisdiction to investigate and prosecute any officer, director, agent, or employee of any organization who collects contract proceeds on cash-funded prepaid funeral contracts and fails to deposit such funds with a trustee as required under § 23-40-114.
Source: Arkansas Code — historical release 78 (November 6, 2020) · 23-40-106
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. A text match is a research starting point; applicability is not established.
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Record provenance
Stable record: arkansas_code:legal_authorities:23-40-106
Source file: gov.ar.code.title.23.odt
Pages: Not recorded – Not recorded
Passage SHA-256: 2a08fd1d3a764edd5bfecedbaecec3cd465fec7e011177451579c9bcaafbd39a
Source location: content.xml paragraph 19253
Stored source content
23-40-106. Violations — Penalties.
(a)(1) An officer, director, agent, or employee of an organization subject to this chapter who makes, or attempts to make, a contract in violation of this chapter, or refuses to allow an inspection of the organization's records shall be punished by a fine of not less than one thousand dollars ($1,000) and not more than ten thousand dollars ($10,000), or by imprisonment in the county jail for at least six (6) months and not more than twelve (12) months, or by both fine and imprisonment.
(2)(A) An officer, director, agent, or employee of an organization is guilty of a Class D felony if the officer, director, agent, or employee:
(i) Collects contract proceeds on cash-funded prepaid funeral contracts and fails to deposit the proceeds with a trustee as required under § 23-40-114; or
(ii) Collects proceeds on insurance-funded or annuity-funded contracts, or both, and fails to forward the proceeds to the insurance company or the third-party administrator within twenty (20) business days.
(B) A person convicted of a violation of § 23-40-114 shall be ordered to pay restitution to persons aggrieved by the violation.
(C) Restitution shall be ordered in addition to a fine or imprisonment.
(b) Each violation of any provision of this chapter shall be deemed a separate offense and prosecuted individually.
(c) The Criminal Investigation Division shall have jurisdiction to investigate and prosecute any officer, director, agent, or employee of any organization who collects contract proceeds on cash-funded prepaid funeral contracts and fails to deposit such funds with a trustee as required under § 23-40-114.
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Arkansas Code — all titles (historical 2020) · legal_authorities
23-40-114. Trust funds — Creation — Deposits, withdrawals, and transfers of funds.
(a) All contract proceeds collected under contracts for prepaid funeral benefits, including funds collected under contracts entered into before June 28, 1985, shall be deposited with a trustee within twenty (20) business days after receipt of proceeds, to be held, invested, and administered in a trust fund for the benefit and protection of the contract purchasers pursuant to this chapter.
(b) Each trust fund shall be created by a letter or written agreement which shall be filed with and approved by the Insurance Commissioner prior to placement of funds.
(c) The seller may deposit money or property as surplus at any time.
(d) The commissioner shall prescribe by regulation proper affidavits and forms for the withdrawal of funds from the trust fund.
(e) The commissioner shall first approve and authorize in writing any transfer of funds from an existing trustee to a proposed new trustee if the proposed new trustee meets the requirements of this chapter and the rules promulgated thereunder.
(f) The licensee shall file a request for a transfer of funds, together with a filing fee of two hundred fifty dollars ($250), and any other information required by rule.
(g) This section shall not apply to the proceeds of insurance policies or contracts, and it shall not be necessary to establish a trust for the payment of such proceeds to the beneficiary designated in the policy or contract or the assignee or transferee thereof.
(h) [Repealed.]
Source: Arkansas Code — historical release 78 (November 6, 2020) · 23-40-114
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. The source passage cites 23-40-114. This identifies an authority to review, not proof of applicability.