Details for the seller's fidelity security

The current report's bond/letter-of-credit instructions state a minimum of $1,000 and require the security to run to or indemnify the Comptroller. Section 3 allows the Comptroller to require application security up to $10,000. Obtain the actual required sum rather than selecting a universal amount from the catalog name.

Additional security is a separate matter. After notice and an opportunity to be heard, a finding that the licensee violated the Act within the preceding five calendar years permits additional security equal to one-tenth of the trust funds. The base figure is not a cap on that additional requirement. Do not import the separate Cemetery Care Act's worksheet or $15,000 exclusion.

Use the licensed seller's exact name, license number, principal office and branch information. Section 3a-5 makes the licensee responsible for its representatives and requires their statutory affidavits, while not requiring individual licenses for those selling on its behalf. A separate business selling on its own account needs its own authority.

Trust funding remains a separate duty. The Act requires the specified deposits within 30 days of receipt, an authorized corporate fiduciary and filed trust agreements. Life-insurance or annuity funding instead has its own permitted structure and insurance-licensing requirements; it does not turn a policy into this fidelity undertaking.

The current annual report records the bond or credit number, amount and actual expiration date alongside the trustee and funding information. Coordinate the full Comptroller-accepted condition, execution, effective dates and continuation or replacement. The seller's five-year license renewal cycle does not establish the period of its bond.