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Oklahoma bonds

Oklahoma — Prepaid Cemetery Merchandise Contracts Bond

Oklahoma permits a surety bond as an alternative to the trust funding required for prepaid cemetery merchandise. The required sum follows the merchandise funding calculation, so gather the undelivered contracts and current supplier figures before applying. This is separate from a funeral home's prepaid-benefits security or a cemetery's perpetual-care fund.

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Recorded state
Oklahoma
Bond type
Cemetery / Preneed Bond
Category
Real estate & property

What this bond does

Provide the accepted alternative security for an organization's Cemetery Merchandise Trust funding obligations under 36 O.S. § 7127.

Who needs it
The organization holding or applying for Oklahoma Insurance Department authority to accept advance payments for covered cemetery merchandise. Match the actual permit holder and its undelivered contracts.
Who it protects
The bond replaces the specified merchandise-trust funding and must meet the minimum funding requirement. It is payable to the State of Oklahoma for the benefit of the Insurance Commissioner and purchasers of prepaid cemetery merchandise. Use the Commissioner's accepted undertaking for those obligations; do not substitute a general cemetery-care or prepaid funeral-benefits bond.

Your bond option

This is the option on record for this bond.

The bond amount describes the limit of the bond obligation, not the price. A listed amount does not establish what the requesting party requires. The premium is what you pay and must be confirmed for the actual option. An E&O limit, where listed, is separate errors and omissions insurance.

Details for undelivered merchandise and funding changes

The Department defines minimum funding as 110% of wholesale merchandise cost, plus delivery charges. Its wholesale definition uses published supplier quotations and price lists without available discounts. Bring the undelivered contract inventory and current manufacturer lists, and have the Department confirm the calculation and required sum.

Covered merchandise includes markers, monuments, memorial vases and specified crypts, niches and outer enclosures. The definition excludes grave lots, burial or interment rights, and delivered or installed crypts, niches and outer enclosures. Identify what remains undelivered instead of using the total value of every cemetery sale.

OID's published rules require the Commissioner's approved bond form; a variation needs prior written approval. Bonded permit holders submit quarterly reports within 30 days after each quarter. If a report shows inadequate security, the rules require an additional or amended bond within ten days after Department notification.

Opening and closing burial spaces has a separate rule: unless sold under the specified funeral-home prepaid-benefit permit, the Department describes trust funding of at least 65% of the services' principal or a bond for the full principal. Do not apply the merchandise wholesale formula to those services without OID's direction.

Coordinate the actual effective dates, cancellation notice and continuing obligations with OID and the surety. The republished statute preserves liability for obligations arising before cancellation, termination or expiry. An organization that stops new sales but retains merchandise-trust funds or surety obligations must continue the required annual reporting; stopping sales does not settle the outstanding contracts.

Sources

Have these ready

  1. Match the actual CMT organization, permit and covered merchandise.
  2. List undelivered contracts and current published wholesale figures without supplier discounts.
  3. Obtain OID's confirmed minimum funding calculation, including delivery charges.
  4. Use the approved undertaking and coordinate quarterly reports and any required increase.
  5. Confirm actual dates, execution, cancellation notice, outstanding obligations and Department filing.

Questions about this bond

Is the required sum a standard cemetery-wide amount?

No. The merchandise calculation follows the covered undelivered contracts and minimum funding requirement. OID defines that requirement as 110% of wholesale merchandise cost plus delivery charges; have it confirm your inventory, calculation and required sum.

Does the merchandise formula also govern opening and closing burial spaces?

Do not assume so. OID describes a separate service-funding provision, subject to the specified funeral-home permit exception. Identify the services and obtain its direction before matching the required security.

What follows Purchase Now?

Propeller's Oklahoma Prepaid Cemetery Merchandise Contracts application opens in a new tab. Match the CMT permit holder, OID-confirmed sum and full accepted undertaking, then complete execution and Department filing. Payment does not approve a permit, contract form or a reduction in outstanding funding obligations.

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