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Newfoundland and Labrador
Prepaid Funeral Services Regulations (Amendment)
(Filed December 8, 2017)
Under the authority of section 14 of the Prepaid Funeral Services Act, the Lieutenant-Governor in Council makes the following regulations.
Ann Marie Hann
1. Subsections 4(5) and (6) of the Prepaid Funeral Services Regulations are repealed and the following substituted:
(5) Where, before the coming into force of the Act, a seller has entered into a prepaid funeral contract, the seller shall, not later than 90 days after the end of the fiscal year of the seller, provide to the registrar the audited statements and records required under paragraph 17(1)(a) of the Act.
(6) Where, upon receipt of an audited statement and records under subsection (5), the registrar determines that all or a portion of the amount of money received in payment under the prepaid funeral contracts that are the subject of the audit has not been deposited into a trust account as required under section 6 of the Act, an amount of money shall be paid into a trust account as required under that section at a rate of not less than 20% of that total amount of money received under the contracts in each year for 5 years immediately after the coming into force of the Act.
2. Subsections 6(1) and (3) of the regulations are repealed.
3. Section 8 of the regulations is repealed and the following substituted:
Payment out of fund
8. (1) A buyer or an agent or legal representative of a buyer may apply to the registrar, association or board, whichever has been directed by the minister under subsection 5(3) of the Act to administer the assurance fund, for compensation from the assurance fund where, after the coming into force of the Act,
(a) a seller has become bankrupt and the trustee does not refund the buyer the amount due him or her under the prepaid funeral contract in bankruptcy;
(b) a prepaid funeral contract entered into by the buyer is cancelled and the seller has not, within 6 months of the cancellation, reimbursed the buyer the amount paid by the buyer under the contract together with income accrued on the amount; or
(c) a prepaid funeral contract entered into by the buyer has not been carried out as provided for by the contract and the buyer has, as a result, purchased other funeral goods and services.
(2) Where a person makes an application under subsection (1), the registrar, association or board, whichever has been directed by the minister under subsection 5(3) of the Act to administer the assurance fund, shall determine the amount due to the buyer or his or her agent or legal representative in accordance with the prepaid funeral contract entered into by that buyer but, where an application is made under paragraph (1)(a), the applicant shall only be reimbursed the difference between the amount due under the contract and an amount paid to the applicant by the trustee in bankruptcy.
(3) Notwithstanding subsection (2), where a person makes an application under subsection (1) because he or she believes that the funeral goods or services provided were not in accordance with those required by the prepaid funeral contract, the registrar, association or board, whichever has been directed by the minister under subsection 5(3) of the Act to administer the assurance fund, may award to the person an amount that is determined to be the difference between the goods and services supplied and the goods and services that were contracted under the contract.
(4) The minister shall determine the information, forms and documentation that are to be provided in support of an application under subsection (1) and failure to provide the required information is a reason to deny the application.
4. Subsections 9(2) to (5) of the regulations are repealed and the following substituted:
(2) Where a seller does not receive a response to a letter sent to a buyer under subsection (1) within the time stated in the letter, the seller, or, where the seller is a corporation, a director of the corporation, shall, in writing, immediately notify the registrar that he or she believes that the money held in trust with respect to the prepaid funeral contract to which subsection (1) applies is and will remain unclaimed and shall state the reasons for this belief.
(3) After receiving a letter from a seller under subsection (2), the registrar may instruct the seller and the trustee of the money held with respect to the prepaid funeral contract to pay that money, less an amount referred to in subsection (6), into the assurance fund and that money shall be paid as instructed.
(4) A person entitled to money paid into the assurance fund under subsection (3) may apply to the registrar requesting him or her to pay over to the person the money and income that has accrued on the money.
(5) Where the registrar is satisfied that a person who has applied under subsection (4) is entitled to be paid money together with accrued income, the registrar shall direct the payment of the money and income set out in the order from the assurance fund to the appropriate person.