Section 31Sec./Art. 31

Deposits to the Trust Fund. (a) The pre-need company shall make monthly deposits to the trust fund in an amount determined by the accredited actuary, sufficient to pay the benefits promised under the contract. For plans paid for in full, the pre-need company shall deposit into the trust fund at least forty - five percent (45%) for life plans and fifty - one percent (51%) for education and pension plans of said full payment or such higher amount as determine by the actuary.

In case of installment payments, the minimum limits of the deposit contributions to the trust fund, unless the viability study done by the actuary requires otherwise, shall be in accordance with the following schedule:

Life Plans

Other Plans

Collection of the 1st 20% of Contract Price

5%

5%

Collection of the 2nd 20% of Contract Price

10%

10%

Collection of the 3rd 20% of Contract Price

70%

80%

Collection of the 4th 20% of Contract Price

70%

80%

Collection of the 5th 20% of Contract Price

70%

80%

Contributions to the trust fund shall not form part of the income or gross receipts of the pre-need company and, therefore, shall not be available for dividend declaration or payment to creditors.

(b) The deposits to the trust fund shall be made within twenty (20) days from the end of each reference month for payments received from plans whether paid for in full or in installments. Failure to make the trust fund deposit shall subject the pre-need company to administrative liability as provided for under this Code.

(c) Should the Commission discover a deficiency in the trust fund, it shall give notice of the same to the pre-need company and require the said company to make additional deposits. The pre-need company shall have thirty (30) days from receipt of notice to make the said deposits and correct the deficiency. Failure to pay the deficiency inspite of notice by the Commission shall subject the pre-need company to the payment of a penalty, in addition to other sanctions imposable under this Code.

(d) For plans sold prior to the effectivity of this law, the minimum contributions to the trust fund shall be governed by rules and regulations in force at the time of sale.