[§441-24.6]  Pre-need trusts and perpetual
care funds; actuarial studies.  (a)  Every cemetery authority operating a
perpetual care cemetery and every cemetery or pre-need funeral authority
offering pre-need services shall contract with an independent actuary to
conduct an annual study of its level of funding.  In the case of a perpetual
care cemetery, the study shall be to determine whether the authority's
perpetual care fund will provide sufficient income to cover the costs of the
perpetual care of the cemetery.  In the case of a cemetery or pre-need funeral
authority, the study shall be to determine whether the authority's pre-need
trust will be sufficient to cover the claims of pre-need plan participants.



(b)  The actuarial study shall be submitted to the
director within one hundred twenty days after the close of the authority's
books for the fiscal or calendar year.  At a minimum, such study shall detail
the assets and liabilities of the fund or trust, the actuarial assumptions used
in preparing the report and the actuary's conclusions as to whether the levels
of funding are adequate.  If the actuary concludes that the funding is not
adequate, the actuary shall recommend what actions are necessary to protect the
perpetual care fund or pre-need trust participants.



(c)  If the study concludes that the levels of
funding are not adequate or that the interests of the participants in the
perpetual care fund or pre-need trusts are in any other respect not adequately
protected, the director may require that a greater portion of the income be
transferred to the fund or trust or may take such other action as is necessary
to correct any inadequacies or may suspend the authority's right to accept
further participants in the fund or trust.  If requested by the authority, a
hearing on the action taken by the director shall be conducted pursuant to
chapter 91. [L 1985, c 101, §25]