A. In all cases where funeral plans are sold, all money paid, directly or indirectly, under such agreement, or under any agreement collateral thereto, shall be held in trust for the purpose for which it was paid until the obligation is fulfilled according to its terms; provided, however, that any payment made pursuant to this section shall be released upon death of the person for whose benefit such payment was made, and no payments so made shall be subject to forfeiture. Accruals of interest upon this money shall be subject to the same trust.

B. All funds received as herein provided shall be placed in trust with a trustee pursuant to an agreement executed by the depositor and trustee which shall provide that the trustee shall hold the same in trust for the purposes for which deposited; that the trustee shall pay the same to the depositor upon the filing of a certified copy of the death certificate or other satisfactory evidence of the death of the beneficiary; and that the beneficiary or his duly appointed guardian may, in writing, demand the return of the money, together with accrued interest, if any, less cost incurred in the operation of such trust, and the depositor shall be entitled to receive such money from the trustee for payment to the beneficiary upon delivery of such written demand to the trustee. The payment of such funds and accumulated interest, pursuant to the terms of this article and the agreement herein referred to, shall relieve the trustee of any further liabilities with regard to such funds or interest thereon.

C. Each seller of funeral plans shall submit such accounting or accountings of all monies collected or received on account of or in connection with the sale of funeral plans, and of all money deposited or withdrawn from a trustee, as the superintendent may reasonably direct, by regulation or order.

D. The premium tax as levied in Section 102 [59A-6-2 NMSA 1978] of the Insurance Code shall not be applicable to money collected and placed in trust pursuant to this section, nor shall funds collected and placed in such a trust be used as the basis for the calculation of the capital and surplus, general deposits and fees otherwise required under Section 83 [59A-5-16 NMSA 1978] of the Insurance Code.

History: Laws 1984, ch. 127, § 904.