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Tennessee bonds

Tennessee — Cemetery Company Bond

Tennessee's Cemetery Company Surety Bond concerns the company's improvement care trust account. Identify the registered company and the actual cemetery or separate geographical location before applying. Burial Services lists a fidelity bond and trust agreements separately; this surety undertaking does not replace those requirements.

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

What this bond does

Provide the Department's accepted cemetery-company security associated with the improvement care trust fund under Tenn. Code Ann. § 46-1-203.

Who needs it
The cemetery company on the registration that owns and operates the named cemetery or separate geographical location. Have Burial Services confirm the required sum and filing for that actual site.
Who it protects
The actual Department form is payable to Tennessee's Department of Commerce and Insurance. Liability arises when the principal fails to comply strictly with the Cemetery Act or its rules relative to the improvement care trust account. It is not a general guarantee of every cemetery sale or a substitute for separate preneed merchandise and services arrangements.

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 the improvement care fund and location

The Department's form identifies both the company as shown on its registration and the cemetery or separate geographical location. It states that the company must establish and maintain an improvement care trust fund for each separate cemetery and geographical location. Match those identities with the actual trust agreement and registration.

Obtain Burial Services' required sum for the proposed registration and location before applying. Bring the county, whether this is a new cemetery or an addition, and the Department's written requirement under Section 46-1-203. Do not assume the same deposit or undertaking applies to every cemetery-company situation.

The form requires filing with the Commissioner and depositing the bond into the improvement care trust fund. Coordinate both steps with Burial Services and the trustee. An online purchase receipt is not evidence that the Department and trust have received the accepted document.

The surety may end liability for future acts or omissions by certified-mail notice to the Commissioner at least 90 days before the stated termination date. The form expressly retains the surety's obligation for the principal's acts or omissions before that date. Termination is not an immediate release or a settlement of earlier defaults.

The current registration checklist separately lists a fidelity bond, the owner-and-trustee improvement care agreement, and the preneed merchandise and services trust agreement. Prepare the actual principal and surety execution, seal, agent information and notarization. Maintain those accompanying requirements rather than using this bond as the whole registration packet.

Sources

Have these ready

  1. Use the company name on registration and the exact cemetery or separate geographical location.
  2. Obtain Burial Services' required sum and direction for the actual site and trust.
  3. Coordinate the improvement care agreement and separate fidelity/preneed requirements.
  4. Prepare principal and surety execution, seal, agent information and notarization.
  5. Complete Commissioner filing and trust deposit, with the actual dates and 90-day certified-mail termination terms understood.

Questions about this bond

Does this replace the separately listed fidelity bond?

No. Burial Services' current checklist lists the surety bond and fidelity bond separately. Its surety form concerns compliance relative to the improvement care trust account. Match each written requirement to its accepted document.

Can the surety end liability immediately?

The selected form requires at least 90 days' certified-mail notice to the Commissioner for termination as to future acts or omissions. It preserves obligations for acts or omissions before the effective termination date.

What follows Purchase Now?

Propeller's Tennessee Cemetery Company application opens in a new tab. Match the registered company and site, Department-confirmed sum, full accepted condition and actual dates, then complete execution, Commissioner filing and improvement care trust deposit. Payment does not complete the cemetery registration.

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