With the proposal of House Bill 677, an amendment to section 41-43-47 of the Mississippi Code of 1972 would require all applicable cemetery owners who are subject to the obligations stated in the same section to post a surety bond as a new form of financial security. The bond must be posted in the amount of $500,000, but can be lowered on a case-by-case basis as determined by the Secretary of State.
The purpose of this bond is to guarantee that the families or legal representatives of those who are deceased will not face any financial burdens if a specific cemetery becomes insolvent or bankrupt. This bond also includes coverage for the owners or purchasers of any lot, grave, plot or burial space within the cemetery, as well.
The instatement of this bill would also make amendments to section 73-63-59 of the Code requiring all preneed contract sellers in Mississippi that are funded by trust to post a surety bond in the same amount of $500,000. This amount can also be lowered if the Secretary of State deems it necessary for each applicant.
This bond would act as a form of financial protection for the beneficiaries as well as the estate listed in the contract. By posting a preneed contract seller bond, contract providers are legally responsible for pursuing all actions and services provided with a sense of integrity and good intent.
If it’s discovered that the trust fund involved in the contract is being used improperly and not in the best interest of the beneficiary or other applicable individual, or if the trust fund does not contain the correct amount of money as required by the contract, those who suffer financial losses or other damages will not be held responsible or permanently harmed as claims can be filed.
If instated, this act will become effective by law on July 1, 2015. If you know that you need to post this surety bond before the effective date in order to continue providing lawful services as either a cemetery owner or preneed contract provider, contact SuretyBonds.com today to begin our simple bonding process. To speak personally with one of our surety experts, call 1 (800) 308-4358. You will be able to enjoy quick, easy and accurate bonding services from our team of specialists who make your bonding needs our number one priority. For your convenience, you can also click here to fill out an online bond request form.