Common use of THIS CONTRACT IS TRUST FUNDED Clause in Contracts

THIS CONTRACT IS TRUST FUNDED. Unless Provider has furnished a surety bond or letter of credit acceptable to the Insurance Commissioner, Provider will deposit all funds in accordance with USE OF AMOUNT TO BE TRUSTED (Disclosure 4) required for Funeral Merchandise and Services in a state or national bank, trust company, federally insured savings and loan association or with a person lawfully appointed as fiduciary of the funds in accordance with Ala. Code § 27-17A-1 et seq. The trustee will be chosen by the Provider and the trust will be subject to a trust agreement approved by the Insurance Commissioner. As an alternative to the trust requirement, the Provider may purchase a surety bond in an amount not less than the aggregate value of outstanding liabilities on undelivered preneed contracts for merchandise, services and cash advances. The term outstanding liabilities means the original retail amount of services and cash advances and the actual cost to the Provider to provide the undelivered merchandise sold on each contract. In lieu of a surety bond, the Provider may purchase a letter of credit in the amount of the outstanding liabilities.

THIS CONTRACT IS TRUST FUNDED. Unless Provider has furnished a surety bond or letter of credit acceptable to the Insurance Commissioner, Provider will deposit all funds in accordance with USE OF AMOUNT TO BE TRUSTED (Disclosure 4) required for Funeral Cemetery Merchandise and Services in a state or national bank, trust company, federally insured savings and loan association or with a person lawfully appointed as fiduciary of the funds in accordance with Ala. Code § 27-17A-1 et seq. The trustee will be chosen by the Provider and the trust will be subject to a trust agreement approved by the Insurance Commissioner. As an alternative to the trust requirement, the Provider may purchase a surety bond in an amount not less than the aggregate value of outstanding liabilities on undelivered preneed contracts for merchandise, services and cash advances. The term outstanding liabilities means the original retail amount of services and cash advances and the actual cost to the Provider to provide the undelivered merchandise sold on each contract. In lieu of a surety bond, the Provider may purchase a letter of credit in the amount of the outstanding liabilities.