FUNERAL AND BURIAL SERVICES

Nev. Rev. Stat. 689
in effect

Nev. Rev. Stat. § 689.015 Definitions.

As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS 689.035 to 689.145, inclusive, have the meanings ascribed to them in those sections.

Nev. Rev. Stat. § 689.035 “Agent” defined.

“Agent” means an individual authorized by a seller to offer, sell or solicit the purchase of a prepaid contract on behalf of the seller.

Nev. Rev. Stat. § 689.065 “Net purchase price” defined.

“Net purchase price” means the purchase price, including interest earned on the trust funds attributable to the buyer, remaining after deduction of the sales commission.

Nev. Rev. Stat. § 689.105 “Purchase price” defined.

“Purchase price” means the aggregate amount to be paid by a buyer to a seller for a prepaid contract.

Nev. Rev. Stat. § 689.115 “Sales commission” defined.

“Sales commission” means that portion of the purchase price paid to or retained by the seller as compensation in connection with the sale of a prepaid contract.

Nev. Rev. Stat. § 689.135 “Trust fund” defined.

“Trust fund” means a fund containing any money deposited with a trustee by a seller with respect to a prepaid contract.

Nev. Rev. Stat. § 689.137 “Trust liability” defined.

“Trust liability” means 100 percent of the purchase price after deducting commissions.

Nev. Rev. Stat. § 689.145 “Trustee” defined.

“Trustee” means: 1. A state or national bank or savings bank; 2. A trust company; 3. A federally insured savings and loan association; or 4. A credit union insured by the National Credit Union Share Insurance Fund or by a private insurer approved pursuant to NRS 672.755 , Ê authorized to transact such business in the State of Nevada and designated as the trustee of the trust fund in a prepaid contract.

Nev. Rev. Stat. § 689.148 Regulations.

The Commissioner may adopt such regulations as may be necessary to carry out the purposes and provisions of this chapter.

Nev. Rev. Stat. § 689.150 Definitions.

As used in NRS 689.150 to 689.375, inclusive, unless the context otherwise requires: 1. “Funeral service or services” means those services performed normally by funeral directors, funeral arrangers or funeral or mortuary parlors and includes their sales of supplies and equipment for burial. The term includes cremations and crematory services. The term does not include services performed by a cemetery or the sale by a cemetery of services, interests in land, markers, memorials, monuments or merchandise and equipment in relation to the cemetery or the sale of crypts or niches constructed or to be constructed in a mausoleum or columbarium or otherwise on the property of a cemetery. 2. “Performer” means any person designated in a prepaid contract to furnish the funeral services, supplies and equipment covered by the contract on the demise of the beneficiary. 3. “Prepaid contract” means any contract under which, for a specified consideration paid in advance in a lump sum or by installments or payable solely from the proceeds of a policy of life insurance, the seller of the contract guarantees or promises either before or upon the death of a beneficiary named in or otherwise ascertainable from the contract to furnish funeral services and merchandise. The term does not include a contract of insurance or any instrument in writing whereby any charitable, religious, benevolent or fraternal benefit society, corporation, association, institution or organization, not having for its object or purpose pecuniary profit, promises or agrees to embalm, inter or otherwise dispose of the remains of any person, or to procure or pay the expenses, or any part thereof, of embalming, interring or otherwise disposing of the remains of any person.

Nev. Rev. Stat. § 689.155 Unlawful acts; exception.

1. It is unlawful for any person to receive, hold, control or manage money or proceeds received or derived from the sale of, or from a contract to sell, any personal property, merchandise, funeral supplies or services of any description not already existing, available, deliverable and suitable for use in, or for the performance of, any service before the final disposition of the remains of any deceased person, whether such payments are made in lump sum or on an installment basis, before the demise of the person purchasing them or the person for whose use and benefit they are purchased, unless the provisions of NRS 689.150 to 689.375 , inclusive, are complied with. 2. The provisions of subsection 1 do not apply to a bona fide prepaid agreement whereby a licensed mortuary or funeral home is to furnish funeral services to a person who has a medically diagnosed terminal illness and which agreement is entered into and fully performed by the mortuary or funeral home on a date which is within 60 days of the date medically predicted for the demise of the person.

Nev. Rev. Stat. § 689.160 Applicability of other provisions to agents, sellers and applicants for certificate of authority.

1. The provisions of NRS 683A.341 , 683A.451 , 683A.461 and 686A.010 to 686A.310 , inclusive, apply to agents and sellers. 2. For the purposes of subsection 1, unless the context requires that a section apply only to insurers, any reference in those sections to “insurer” must be replaced by a reference to “agent” and “seller.” 3. The provisions of NRS 679B.230 to 679B.300 , inclusive, apply to sellers. Unless the context requires that a provision apply only to insurers, any reference in those sections to “insurer” must be replaced by a reference to “seller.” 4. The provisions of NRS 683A.301 apply to applicants for and holders of a seller’s certificate of authority. Unless the context requires that a provision apply only to an applicant for or holder of a license as a producer of insurance, any reference in that section to: (a) An “applicant for a license as a producer of insurance” must be replaced by a reference to an “applicant for a seller’s certificate of authority”; and (b) A “licensee” must be replaced by a reference to a “holder of a seller’s certificate of authority.”

Nev. Rev. Stat. § 689.165 Certificate of authority and compliance with provisions required to sell or accept money under prepaid contract.

A person shall not sell any prepaid contract or accept any money under such a contract unless: 1. The person holds a valid certificate of authority as a seller issued by the Commissioner; and 2. The contract and the sale thereof are in compliance with the provisions of NRS 689.150 to 689.375 , inclusive.

Nev. Rev. Stat. § 689.175 Certificate of authority: Application and supporting documents; fees.

1. The proposed seller, or the appropriate corporate officer of the proposed seller, shall apply in writing to the Commissioner for a seller’s certificate of authority, showing: (a) The proposed seller’s name and address, and his or her occupations during the preceding 5 years; (b) The name and address of the proposed trustee; (c) The names and addresses of the proposed performers, specifying what particular services, supplies and equipment each performer is to furnish under the proposed prepaid contract; and (d) Such other pertinent information as the Commissioner may reasonably require. 2. The application must be accompanied by: (a) A copy of the proposed trust agreement and a written statement signed by an authorized officer of the proposed trustee to the effect that the proposed trustee understands the nature of the proposed trust fund and accepts it; (b) A copy of each contract or understanding, existing or proposed, between the seller and performers relating to the proposed prepaid contract or items to be supplied under it; (c) A certified copy of the articles of incorporation and the bylaws of any corporate applicant; (d) A copy of any other document relating to the proposed seller, trustee, trust, performer or prepaid contract, as required by the Commissioner; and (e) The applicable fee established in NRS 680B.010 , which is not refundable, and, in addition to any other fee or charge, all applicable fees required pursuant to NRS 680C.110 . 3. A natural person who is a resident of this State must, as part of his or her application and at the applicant’s own expense: (a) Arrange to have a complete set of his or her fingerprints taken by a law enforcement agency or other authorized entity acceptable to the Commissioner; and (b) Submit to the Commissioner: (1) A completed fingerprint card and written permission authorizing the Commissioner to submit the applicant’s fingerprints to the Central Repository for Nevada Records of Criminal History for submission to the Federal Bureau of Investigation for a report on the applicant’s background and to such other law enforcement agencies as the Commissioner deems necessary; or (2) Written verification, on a form prescribed by the Commissioner, stating that the fingerprints of the applicant were taken and directly forwarded electronically or by another means to the Central Repository and that the applicant has given written permission to the law enforcement agency or other authorized entity taking the fingerprints to submit the fingerprints to the Central Repository for submission to the Federal Bureau of Investigation for a report on the applicant’s background and to such other law enforcement agencies as the Commissioner deems necessary. 4. The Commissioner may: (a) Unless the applicant’s fingerprints are directly forwarded pursuant to subparagraph (2) of paragraph (b) of subsection 3, submit those fingerprints to the Central Repository for submission to the Federal Bureau of Investigation and to such other law enforcement agencies as the Commissioner deems necessary; and (b) Request from each such agency any information regarding the applicant’s background as the Commissioner deems necessary.

Nev. Rev. Stat. § 689.185 Certificate of authority: Surety bond or deposit required; replacement bond; release of deposit; waiver.

1. Except as otherwise provided in subsection 2: (a) Before the issuance of a certificate of authority, the seller shall post with the Commissioner and thereafter maintain in force a bond which complies with NRS 679B.175 and is in an amount determined by the Commissioner, which must be not less than $50,000, or a deposit of cash or negotiable securities or a combination of cash and negotiable securities. If a deposit is made in lieu of a bond, the deposit must at all times have a market value of not less than the amount of the bond required by the Commissioner. (b) The bond or deposit must be held for the benefit of buyers of prepaid contracts, and other persons as their interests may appear, who may be damaged by misuse or diversion of money by the seller or the agents of the seller, or to satisfy any judgments against the seller for failure to perform a prepaid contract. The aggregate liability of the surety for all breaches of the conditions of the bond must not exceed the sum of the bond. (c) A replacement bond must meet all requirements of this subsection for the initial bond. (d) The Commissioner shall release the deposit after the seller has ceased doing business as such and the Commissioner is satisfied of the nonexistence of any obligation or liability of the seller for which the deposit was held. 2. The Commissioner may waive the requirements of subsection 1 if the seller agrees: (a) To offer for sale only prepaid contracts that are payable solely from the proceeds of a policy of life insurance; and (b) Not to collect any money from the purchaser of a prepaid contract.

Nev. Rev. Stat. § 689.195 Certificate of authority: Issuance; denial.

1. If the Commissioner finds that the application is complete and the applicant otherwise qualifies under the provisions of NRS 689.150 to 689.375 , inclusive, the Commissioner shall issue a seller’s certificate of authority to the applicant. 2. The Commissioner shall refuse to issue a seller’s certificate of authority to any applicant who does not comply with or otherwise meet the requirements of NRS 689.150 to 689.375 , inclusive. Upon such refusal, the Commissioner shall give written notice thereof to the applicant, setting forth the reasons for the refusal.

Nev. Rev. Stat. § 689.205 Certificate of authority: Expiration; renewal; fees for renewal.

1. Each seller’s certificate of authority issued pursuant to NRS 689.150 to 689.375 , inclusive, expires at midnight on April 30 of the third year following its date of issuance or renewal. 2. The Commissioner shall renew a certificate of authority upon receiving a written request for renewal from the seller, accompanied by all applicable fees for renewal, which are not refundable, if the Commissioner finds that the seller is, at that time, in compliance with all applicable provisions of NRS 689.150 to 689.375 , inclusive. 3. The Commissioner may accept a request for renewal received by the Commissioner within 30 days after the expiration of the certificate if the request is accompanied by a fee for renewal of 150 percent of all applicable fees otherwise required, except for any fee required pursuant to NRS 680C.110 .

Nev. Rev. Stat. § 689.215 Certificate of authority: Revocation; suspension.

1. After giving written notice of charges to the seller, not less than 30 days in advance of a hearing, the Commissioner may, after the hearing, revoke the seller’s certificate of authority if the seller: (a) Obtained the certificate of authority through misrepresentation or concealment of a material fact; (b) Is no longer qualified for such a certificate of authority; or (c) Knowingly violates any provision of NRS 689.150 to 689.375 , inclusive, or any lawful order or regulation of the Commissioner. 2. If a seller is found to be in violation of paragraph (c) of subsection 1, the Commissioner may, in lieu of revocation, suspend the seller’s certificate of authority for a period not to exceed 90 days.

Nev. Rev. Stat. § 689.225 Agent’s license required to solicit sale of prepaid contract on behalf of seller; exception; administrative fine.

1. It is unlawful for any person to solicit the sale of a prepaid contract in this state on behalf of a seller unless the person holds a valid agent’s license issued by the Commissioner. 2. This section does not apply to a seller who holds a valid seller’s certificate of authority. 3. A person who solicits the sale of a prepaid contract in this state without a license is subject to an administrative fine of not more than $1,000 for each violation.

Nev. Rev. Stat. § 689.235 Agent’s license: Qualifications; application; fees; conviction of or pleas to certain crimes by applicant or licensee sufficient ground for denial, suspension or revocation; fingerprints. [Effective until the date of the repeal of 42 U.S.C. § 666, the federal law requiring each state to establish procedures for withholding, suspending and restricting the professional, occupational and recreational licenses for child support arrearages and for noncompliance with certain processes relating to paternity or child support proceedings.]

1. To qualify for an agent’s license, the applicant: (a) Must file a written application with the Commissioner on forms prescribed by the Commissioner; (b) Must have a good business and personal reputation; and (c) Must not have been convicted of, or entered a plea of guilty, guilty but mentally ill or nolo contendere to, forgery, embezzlement, obtaining money under false pretenses, larceny, extortion, conspiracy to defraud or any crime involving moral turpitude. 2. The application must: (a) Contain information concerning the applicant’s identity, address, social security number and personal background and business, professional or work history. (b) Contain such other pertinent information as the Commissioner may require. (c) Be accompanied by the statement required pursuant to NRS 689.258 . (d) Be accompanied by the applicable fee established in NRS 680B.010 , which is not refundable, and, in addition to any other fee or charge, all applicable fees required pursuant to NRS 680C.110 . 3. A conviction of, or plea of guilty, guilty but mentally ill or nolo contendere by, an applicant or licensee for any crime listed in paragraph (c) of subsection 1 is a sufficient ground for the Commissioner to deny a license to the applicant, or to suspend or revoke the agent’s license pursuant to NRS 689.265 . 4. A natural person who is a resident of this State must, as part of his or her application and at the applicant’s own expense: (a) Arrange to have a complete set of his or her fingerprints taken by a law enforcement agency or other authorized entity acceptable to the Commissioner; and (b) Submit to the Commissioner: (1) A completed fingerprint card and written permission authorizing the Commissioner to submit the applicant’s fingerprints to the Central Repository for Nevada Records of Criminal History for submission to the Federal Bureau of Investigation for a report on the applicant’s background and to such other law enforcement agencies as the Commissioner deems necessary; or (2) Written verification, on a form prescribed by the Commissioner, stating that the fingerprints of the applicant were taken and directly forwarded electronically or by another means to the Central Repository and that the applicant has given written permission to the law enforcement agency or other authorized entity taking the fingerprints to submit the fingerprints to the Central Repository for submission to the Federal Bureau of Investigation for a report on the applicant’s background and to such other law enforcement agencies as the Commissioner deems necessary. 5. The Commissioner may: (a) Unless the applicant’s fingerprints are directly forwarded pursuant to subparagraph (2) of paragraph (b) of subsection 4, submit those fingerprints to the Central Repository for submission to the Federal Bureau of Investigation and to such other law enforcement agencies as the Commissioner deems necessary; and (b) Request from each such agency any information regarding the applicant’s background as the Commissioner deems necessary.

Nev. Rev. Stat. § 689.245 Agent’s license: Issuance; denial.

1. If the Commissioner finds that the application is complete and the applicant meets the requirements of NRS 689.235 after an investigation not to exceed 30 days, the Commissioner shall issue at the request of the holder of a valid seller’s certificate of authority an agent’s license to the applicant. 2. If the license is denied the Commissioner shall immediately notify the applicant and the seller whom the applicant was to represent setting forth the reasons for the denial.

Nev. Rev. Stat. § 689.255 Agent’s license: Period of validity; renewal; fees for renewal; expiration. [Effective until the date of the repeal of 42 U.S.C. § 666, the federal law requiring each state to establish procedures for withholding, suspending and restricting the professional, occupational and recreational licenses for child support arrearages and for noncompliance with certain processes relating to paternity or child support proceedings.]

1. Each agent’s license issued or renewed pursuant to NRS 689.150 to 689.375 , inclusive, continues in force for 3 years unless it is suspended, revoked or otherwise terminated. 2. An agent’s license may be renewed at the request of the holder of a valid seller’s certificate of authority, upon filing a written request for renewal accompanied by all applicable fees for renewal and the statement required pursuant to NRS 689.258 . All applicable fees for renewal are nonrefundable. 3. Any license not so renewed expires on the renewal date. The Commissioner may accept a request for renewal received by the Commissioner within 30 days after the expiration of the license if the request is accompanied by a fee for renewal of 150 percent of all applicable fees otherwise required, except for any fee required pursuant to NRS 680C.110 , and the statement required pursuant to NRS 689.258 . 4. An agent’s license is valid only while the agent is employed by a holder of a valid seller’s certificate of authority. 5. As used in this section, “renewal date” means: (a) For the first renewal of the license, the last day of the month which is 3 years after the month in which the Commissioner originally issued the license. (b) For each renewal after the first renewal of the license, the last day of the month which is 3 years after the month in which the license was last due to be renewed.

Nev. Rev. Stat. § 689.258 Payment of child support: Statement by applicant for agent’s license; grounds for denial of agent’s license; duty of Commissioner. [Effective until the date of the repeal of 42 U.S.C. § 666, the federal law requiring each state to establish procedures for withholding, suspending and restricting the professional, occupational and recreational licenses for child support arrearages and for noncompliance with certain processes relating to paternity or child support proceedings.]

1. An applicant for the issuance or renewal of an agent’s license pursuant to this chapter shall submit to the Commissioner the statement prescribed by the Division of Social Services of the Department of Human Services pursuant to NRS 425.520 . The statement must be completed and signed by the applicant. 2. The Commissioner shall include the statement required pursuant to subsection 1 in: (a) The application or any other forms that must be submitted for the issuance or renewal of the license; or (b) A separate form prescribed by the Commissioner. 3. An agent’s license may not be issued or renewed by the Commissioner pursuant to this chapter if the applicant: (a) Fails to submit the statement required pursuant to subsection 1; or (b) Indicates on the statement submitted pursuant to subsection 1 that the applicant is subject to a court order for the support of a child and is not in compliance with the order or a plan approved by the district attorney or other public agency enforcing the order for the repayment of the amount owed pursuant to the order. 4. If an applicant indicates on the statement submitted pursuant to subsection 1 that the applicant is subject to a court order for the support of a child and is not in compliance with the order or a plan approved by the district attorney or other public agency enforcing the order for the repayment of the amount owed pursuant to the order, the Commissioner shall advise the applicant to contact the district attorney or other public agency enforcing the order to determine the actions that the applicant may take to satisfy the arrearage.

Nev. Rev. Stat. § 689.262 Suspension of agent’s license for failure to pay child support or comply with certain subpoenas or warrants; reinstatement of agent’s license. [Effective until the date of the repeal of 42 U.S.C. § 666, the federal law requiring each state to establish procedures for withholding, suspending and restricting the professional, occupational and recreational licenses for child support arrearages and for noncompliance with certain processes relating to paternity or child support proceedings.]

1. If the Commissioner receives a copy of a court order issued pursuant to NRS 425.540 that provides for the suspension of all professional, occupational and recreational licenses, certificates and permits issued to a person who is the holder of an agent’s license issued pursuant to this chapter, the Commissioner shall deem the license issued to that person to be suspended at the end of the 30th day after the date on which the court order was issued unless the Commissioner receives a letter issued to the holder of the license by the district attorney or other public agency pursuant to NRS 425.550 stating that the holder of the license has complied with the subpoena or warrant or has satisfied the arrearage pursuant to NRS 425.560 . 2. The Commissioner shall reinstate an agent’s license issued pursuant to this chapter that has been suspended by a district court pursuant to NRS 425.540 if the Commissioner receives a letter issued by the district attorney or other public agency pursuant to NRS 425.550 to the person whose license was suspended stating that the person whose license was suspended has complied with the subpoena or warrant or has satisfied the arrearage pursuant to NRS 425.560 .

Nev. Rev. Stat. § 689.265 Agent’s license: Revocation; suspension.

The Commissioner may proceed against an agent’s license in the same manner as provided in NRS 689.215 if the agent: 1. Obtained the license through misrepresentation or concealment of a material fact. 2. Is no longer qualified for such a license. 3. Knowingly violates any provision of NRS 689.150 to 689.375 , inclusive, or any lawful order or regulation of the Commissioner.

Nev. Rev. Stat. § 689.275 Prepaid contracts: Content; entire agreement; rescission.

1. All forms for a prepaid contract offered or sold in this state must contain: (a) The names and addresses of the seller, buyer, beneficiary and trustee and of each performer; (b) A clear and unambiguous statement of the services and property to be supplied and by whom; (c) The purchase price of each item of supply or service and how payable; (d) The date and place of execution; (e) Other reasonable and appropriate provisions as prescribed by the Commissioner by regulation; (f) The full percentage of the sales commission to be retained by the seller; (g) The seller’s or his or her agent’s signature on the original contract and his or her identification by name and title on any duplicate copy of the contract given to the buyer; (h) A provision in 14-point type or larger, stating in substance that the buyer is permitted to return the contract within 10 days after its delivery to the buyer and to have the full purchase price or amount paid thereon refunded if the buyer is not satisfied with it for any reason; (i) In print on its face sheet, in 14-point type or larger, a notice stating, “This is not an insurance contract.”; and (j) A provision for the return of the net purchase price at any time before the services are performed by the seller. 2. The written contract, when signed, constitutes the entire agreement between the parties relative to its subject matter. 3. If the buyer, pursuant to the provision required by paragraph (h) of subsection 1, returns the contract to the seller at the branch or home office of the seller or to the agent through whom it was purchased, the contract is void from the beginning and the parties return to the same position they occupied before the contract was entered into.

Nev. Rev. Stat. § 689.285 Prepaid contracts: Filing, approval and disapproval of forms; waiting period.

1. A seller shall not offer, sell or deliver in this state any prepaid contract unless the form of the contract has been filed with and approved in writing by the Commissioner. 2. The Commissioner shall disapprove any form of contract which the Commissioner finds: (a) Printed or reproduced in such a manner as to be substantially illegible in whole or in part; (b) Contains ambiguous or misleading provisions, clauses or titles; (c) Includes or combines in the prepaid contract provisions for the purchase of a cemetery plot and incidental burial services; or (d) Does not comply or is inconsistent with any applicable requirement of NRS 689.150 to 689.375 , inclusive, or for other good cause shown. 3. No amendment or modification of any form may be made unless the amendment or modification has been filed with and approved in writing by the Commissioner. 4. Each filing is subject to a waiting period of up to 30 days before it becomes effective. 5. Upon written application by the holder of a seller’s certificate of authority, the Commissioner may authorize a filing which the Commissioner has reviewed to become effective before the expiration of the waiting period or any extension thereof. 6. A filing shall be deemed to meet the requirements of NRS 689.150 to 689.375 , inclusive, unless disapproved by the Commissioner within the waiting period or any extension thereof.

Nev. Rev. Stat. § 689.295 Prepaid contracts: Credit life insurance.

If the purchase price for a prepaid contract is to be paid in installments, the seller may make available to the buyer credit life insurance on a form and terms filed with and approved by the Commissioner. The buyer must be provided with a certificate of the credit insurance by the seller or as otherwise required by the Commissioner.

Nev. Rev. Stat. § 689.305 Prepaid contracts: Maximum sales commission.

The sales commission on any prepaid contract shall not exceed 25 percent of the purchase price.

Nev. Rev. Stat. § 689.315 Prepaid contracts: Maintenance and administration of trust fund; exception.

1. Except as otherwise provided in subsection 2: (a) The seller shall establish and maintain a trust fund with an authorized trustee, for the benefit of the beneficiary of the prepaid contract, in accordance with the trust agreement filed with and approved by the Commissioner. (b) The seller shall maintain unimpaired and shall deposit in the trust fund, within 15 days after the end of the month in which payment was received, all installments received on prepaid contracts sold after the sales commission has been deducted. (c) The trustee shall, with respect to the money in the trust fund, exercise the judgment and care under the circumstances then prevailing which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not in regard to speculation, but in regard to the permanent disposition of their money, considering the probable income as well as the probable safety of their capital. Within the limitations of such standards, and subject to any express provision or limitation contained in any particular trust instrument, a trustee may acquire and retain every kind of investment, specifically including bonds, debentures and other corporate obligations and stocks, preferred or common, which persons of prudence, discretion and intelligence acquire or retain for their own account. (d) Except as otherwise provided in NRS 689.150 to 689.375 , inclusive, or the trust agreement approved in writing by the Commissioner or as may be required by an order of a court of competent jurisdiction, the trustees shall maintain the trust fund intact and unimpaired and shall make no other payment or disbursement from the trust fund. 2. The requirements of subsection 1 do not apply if: (a) The prepaid contract is payable solely from the proceeds of a policy of life insurance; and (b) The seller of the prepaid contract does not collect any money from the purchaser of the prepaid contract.

Nev. Rev. Stat. § 689.325 Prepaid contracts: Distributions to seller from trust fund; required amounts for reserve and liabilities in trust fund; filing of financial reports by trustee; fee and penalty related to such reports; determination of total value of trust.

1. Not more than 75 percent of the earnings of such investments, including capital gains, as they accrue and are received, may be disbursed by the trustee to the seller or the designee of the seller. The remainder of any earnings must be held by the trustee to establish a reserve for securities valuation until the reserve equals 25 percent of the total trust liabilities. 2. The trustee shall maintain in the trust fund an amount of money equal to 125 percent of the total trust liabilities. 3. If money in the trust fund is invested or reinvested in: (a) Securities which are issued or guaranteed by the United States of America; (b) Bonds of this state or the bonds of any other state; (c) Bonds of counties or municipalities of any state; (d) Deposits in any bank, credit union, savings and loan association or savings bank that is federally insured or insured by a private insurer approved pursuant to NRS 672.755 ; or (e) With the written approval of the Commissioner, any investment which would have guaranteed liquidity, Ê then no earnings of those investments, including capital gains, if any, as such earnings accrue and are received, may be disbursed by the trustee to the seller or the designee of the seller which would reduce the corpus of the trust fund below 100 percent of the required value of the trust. Earnings in excess of 100 percent of the required value of the trust or 125 percent of the total trust liability, whichever is appropriate, may be distributed annually. 4. Earnings are defined as any sum remaining in the trust fund after deducting costs of administration over and above 100 percent of the required value of the trust. 5. Every trustee handling money in a trust fund pursuant to NRS 689.150 to 689.375 , inclusive, shall file with the Commissioner, within 15 days after the first day of each calendar quarter, a financial statement showing the activity of all trusts required to be maintained by any seller and the total market value of each trust as of the first day of the calendar quarter. The statement must be on forms prescribed and adopted by the Commissioner. Every quarterly report must be accompanied by a fee of $10. If the statement is not received by the Commissioner as required, the Commissioner may, after giving the seller 10 days’ written notice, revoke the seller’s certificate of authority. 6. The trust must be valued quarterly and averaged annually to determine the total value of the trust. If the average market value as of December 31 of each year is below 100 percent of the required value of the trust or 125 percent of the total trust liability, the Commissioner may suspend the seller’s certificate of authority until the deficiency is made up.

Nev. Rev. Stat. § 689.345 Prepaid contracts: Net purchase price required to be available upon notice by buyer, estate or heirs of intent to terminate.

The net purchase price of the preneed contract shall be available to the buyer or the estate or heirs of the buyer at any time prior to performing the service described in the preneed contract upon written notice to the seller and trustee of the intent of the buyer or the estate or heirs of the buyer to terminate the preneed contract and withdraw trust funds attributable to the buyer.

Nev. Rev. Stat. § 689.355 Prepaid contracts: Termination upon notice from buyer or demise of beneficiary; action by trustee or seller.

1. Except as otherwise provided in subsection 2, if the buyer moves to another geographic area beyond the normal facilities of the seller and performers under the prepaid contract, the contract automatically terminates upon the buyer’s written notice to the seller and trustee of the buyer’s move and of the buyer’s desire to terminate the contract. The trustee, as soon as reasonably possible after receipt of the notice, shall refund to the buyer all money in the trust fund, including earned interest, held for the buyer’s account. 2. If the contract continues in force and the buyer is not in default thereunder, upon the demise of the contract beneficiary, the contract automatically terminates. Upon termination, the seller shall refund to the buyer or to the representative or estate of the buyer, or transfer to a substituted performer, if any, all money paid on the contract.

Nev. Rev. Stat. § 689.365 Prepaid contracts: Termination on insolvency or other inability of seller to perform unless assigned; distribution of money in trust fund.

1. An executory prepaid contract automatically terminates if the seller or any performer under the contract goes out of business, dies, becomes insolvent or bankrupt, makes an assignment for the benefit of creditors or is otherwise unable to fulfill the obligations under the contract unless, within 30 days after the going out of business, death, insolvency or bankruptcy of the seller, or within any extension of time granted by the Commissioner, the contract is assigned to a holder of a valid seller’s certificate of authority who agrees in writing to accept the liabilities under the contract and agrees to fulfill all obligations set forth therein. 2. Upon any such termination, the money in the trust fund, including earned interest, held by the trustee for the account of the buyer must be distributed by the trustee to the buyer or to a qualified seller or performer assuming the outstanding contractual liabilities, as authorized by the Commissioner.

Nev. Rev. Stat. § 689.375 Records of seller; examination by Commissioner.

1. Every seller shall keep: (a) Accurate accounts, books and records of all transactions; (b) Copies of all agreements and dates and amounts of payments made and accepted; (c) The names and addresses of the contracting parties; and (d) The persons for whose benefit the payments are accepted and the names of the depositories in which the payments are deposited. 2. The seller shall keep within this State, at the address shown upon the certificate of authority, complete records of all transactions made under the certificate of authority of the seller. Those records and the affairs of the seller are subject to audit and examination by the Commissioner at any reasonable time. The seller shall keep such records for not less than 5 years after the completion of all transactions to which they relate.

Nev. Rev. Stat. § 689.450 Definitions.

As used in NRS 689.450 to 689.595, inclusive, unless the context otherwise requires, the words and terms defined in NRS 689.455 to 689.475, inclusive, have the meanings ascribed to them in those sections.

Nev. Rev. Stat. § 689.455 “Burial merchandise” defined.

“Burial merchandise” means those items normally supplied by a cemetery authority under a preneed sales agreement, including urns, memorials, scrolls, vases, foundations, bases and other similar merchandise, but does not include the sale of space for interment, entombment or inurnment.

Nev. Rev. Stat. § 689.460 “Burial services” defined.

“Burial services” means those services normally performed by a cemetery authority under a preneed sales agreement for the opening and closing of graves, crypts and niches, and other services in relation thereto.

Nev. Rev. Stat. § 689.465 “Cemetery authority” defined.

“Cemetery authority” means any natural person, partnership, corporation, association or cemetery district owning or controlling lands or property for a cemetery and engaged in the operation of a cemetery in this State which provides endowment care or sells burial merchandise or services under prepaid contracts.

Nev. Rev. Stat. § 689.470 “Performer” defined.

“Performer” means any person designated in the prepaid contract to furnish the burial merchandise and supplies and to perform the services covered by the contract, on the demise of the beneficiary.

Nev. Rev. Stat. § 689.475 “Prepaid contract” defined.

1. “Prepaid contract” means any contract under which, for a specified consideration paid in advance in a lump sum or by installments or payable solely from the proceeds of a policy of life insurance, the seller of the contract guarantees or promises, either before or upon the death of a beneficiary named in or otherwise ascertainable from the contract, to provide burial services and to furnish adaptable or suitable personal property, merchandise, supplies or facilities in connection with such services. 2. “Prepaid contract” does not include a contract of insurance or any instrument in writing whereby any charitable, religious, benevolent or fraternal benefit society, corporation, association, institution or organization, not having for its object or purpose pecuniary profit, promises or agrees to embalm, inter or otherwise dispose of the remains of any person, or to procure or pay the expenses, or any part thereof, for embalming, interring or otherwise disposing of the remains of any person.

Nev. Rev. Stat. § 689.480 Unlawful acts; exception.

1. It is unlawful for any person to receive, hold, control or manage money or proceeds received or derived from the sale of, or from a contract to sell, any personal property, equipment, merchandise or supplies of any description not then already existing, available, deliverable and suitable for use in, or for the performance of, any services connected with the interment, entombment or inurnment of the remains of any deceased person, whether any such payment is made in lump sum or on an installment basis, before the demise of the contract beneficiary for whom purchased, unless the provisions of NRS 689.450 to 689.595 , inclusive, are complied with. 2. The provisions of subsection 1 do not apply to: (a) The sale of grave plots, interests in land of a cemetery or space in a mausoleum vault or crypt or columbarium niche by any cemetery authority otherwise authorized to make such sales under NRS 689.450 to 689.595 , inclusive, which sales must be separated and distinctly defined in any agreement for burial merchandise and services. (b) A bona fide prepaid agreement whereby a cemetery authority is to furnish burial merchandise and services to a person who has a medically diagnosed terminal illness and which agreement is entered into and fully performed by the cemetery authority within 60 days of the date medically predicted for the demise of the beneficiary named in any such agreement.

Nev. Rev. Stat. § 689.485 Permit required for cemetery authority to offer or sell burial merchandise or services under prepaid contract; exception; administrative fine.

1. It is unlawful for any cemetery authority, or any person on behalf of a cemetery authority, to offer or sell any burial merchandise or services under a prepaid contract unless the cemetery authority has been issued a seller’s permit by the Commissioner. 2. Subsection 1 does not apply to cemeteries owned and operated by governmental agencies. 3. A person who offers or sells any burial merchandise or services under a prepaid contract in this state in violation of the provisions of this section is subject to an administrative fine of not more than $1,000 for each violation.

Nev. Rev. Stat. § 689.490 Permit: Application and supporting documents; fees.

1. The proposed seller, or the appropriate corporate officer of the seller, shall apply in writing to the Commissioner for a seller’s permit, showing: (a) The proposed seller’s name and address and his or her occupations during the preceding 5 years; (b) The name and address of the proposed trustee; (c) The names and addresses of the proposed performers, specifying what particular services, supplies and equipment each performer is to furnish under the proposed prepaid contract; and (d) Such other pertinent information as the Commissioner may reasonably require. 2. The application must be accompanied by: (a) A copy of the proposed trust agreement and a written statement signed by an authorized officer of the proposed trustee to the effect that the proposed trustee understands the nature of the proposed trust fund and accepts it; (b) A copy of each contract or understanding, existing or proposed, between the seller and performers relating to the proposed prepaid contract or items to be supplied under it; (c) A certified copy of the articles of incorporation and the bylaws of any corporate applicant; (d) A copy of any other document relating to the proposed seller, trustee, trust, performer or prepaid contract, as required by the Commissioner; and (e) The applicable fee established in NRS 680B.010 , which is not refundable, and, in addition to any other fee or charge, all applicable fees required pursuant to NRS 680C.110 . 3. A natural person who is a resident of this State must, as part of his or her application and at the applicant’s own expense: (a) Arrange to have a complete set of his or her fingerprints taken by a law enforcement agency or other authorized entity acceptable to the Commissioner; and (b) Submit to the Commissioner: (1) A completed fingerprint card and written permission authorizing the Commissioner to submit the applicant’s fingerprints to the Central Repository for Nevada Records of Criminal History for submission to the Federal Bureau of Investigation for a report on the applicant’s background and to such other law enforcement agencies as the Commissioner deems necessary; or (2) Written verification, on a form prescribed by the Commissioner, stating that the fingerprints of the applicant were taken and directly forwarded electronically or by another means to the Central Repository and that the applicant has given written permission to the law enforcement agency or other authorized entity taking the fingerprints to submit the fingerprints to the Central Repository for submission to the Federal Bureau of Investigation for a report on the applicant’s background and to such other law enforcement agencies as the Commissioner deems necessary. 4. The Commissioner may: (a) Unless the applicant’s fingerprints are directly forwarded pursuant to subparagraph (2) of paragraph (b) of subsection 3, submit those fingerprints to the Central Repository for submission to the Federal Bureau of Investigation and to such other law enforcement agencies as the Commissioner deems necessary; and (b) Request from each such agency any information regarding the applicant’s background as the Commissioner deems necessary.

Nev. Rev. Stat. § 689.495 Permit: Surety bond or deposit required; replacement bond; release of deposit; waiver.

1. Except as otherwise provided in subsection 2: (a) Before the issuance of a permit to a seller, the seller shall post with the Commissioner and thereafter maintain in force a bond which complies with NRS 679B.175 and is in an amount determined by the Commissioner, which must be not less than $50,000, or a deposit of cash or negotiable securities or a combination of cash and negotiable securities. If a deposit is made in lieu of a bond, the deposit must at all times have a market value not less than the amount of the bond required by the Commissioner. (b) The bond or deposit must be held for the benefit of buyers of prepaid contracts, and other persons as their interests may appear, who may be damaged by misuse or diversion of money by the seller or the agents of the seller, or to satisfy any judgments against the seller for failure to perform a prepaid contract. The aggregate liability of the surety for all breaches of the conditions of the bond must not exceed the sum of the bond. (c) A replacement bond must meet all requirements of this subsection for the initial bond. (d) The Commissioner shall release the deposit after the seller has ceased doing business as such and the Commissioner is satisfied of the nonexistence of any obligation or liability of the seller for which the deposit was held. 2. The Commissioner may waive the requirements of subsection 1 if the seller agrees: (a) To offer for sale only prepaid contracts that are payable solely from the proceeds of a policy of life insurance; and (b) Not to collect any money from the purchaser of a prepaid contract.

Nev. Rev. Stat. § 689.500 Permit: Issuance; denial.

1. If the Commissioner finds that the application is complete, that the cemetery authority is in compliance with all requirements therefor, that the applicant otherwise qualifies under the provisions of NRS 689.450 to 689.595 , inclusive, and upon satisfactory evidence that a burial merchandise and service trust fund has been established, the Commissioner shall issue a seller’s permit to the applicant. 2. The Commissioner shall refuse to issue a seller’s permit to any applicant who does not comply with or otherwise meet the requirements of NRS 689.450 to 689.595 , inclusive. Upon such refusal, the Commissioner shall give written notice thereof to the applicant setting forth the reasons for the refusal.

Nev. Rev. Stat. § 689.505 Permit: Period of validity; renewal; fees for renewal; expiration.

1. Each seller’s permit issued or renewed pursuant to NRS 689.450 to 689.595 , inclusive, continues in effect for 3 years unless it is suspended, revoked or otherwise terminated. 2. The Commissioner shall renew a seller’s permit upon receiving a written request for renewal from the seller, accompanied by all applicable fees for renewal, which are not refundable, if the Commissioner finds that the seller is, at that time, in compliance with all applicable provisions of NRS 689.450 to 689.595 , inclusive. 3. A permit which is not renewed expires on the renewal date. The Commissioner may accept a request for renewal received by the Commissioner within 30 days after the expiration of the permit if the request is accompanied by a fee for renewal of 150 percent of all applicable fees otherwise required, except for any fee required pursuant to NRS 680C.110 . 4. As used in this section, “renewal date” means: (a) For the first renewal of the permit, the last day of the month which is 3 years after the month in which the Commissioner originally issued the permit. (b) For each renewal after the first renewal of the permit, the last day of the month which is 3 years after the month in which the permit was last due to be renewed.

Nev. Rev. Stat. § 689.510 Permit: Revocation; suspension.

1. After giving written notice of charges to the seller, not less than 30 days in advance of a hearing, the Commissioner may, after the hearing, revoke the seller’s permit if the seller: (a) Obtained the permit through misrepresentation or concealment of a material fact; (b) Is no longer qualified for such a permit; or (c) Violates any provision of NRS 689.450 to 689.595 , inclusive, or any lawful order or regulation of the Commissioner. 2. If a seller is found to be in violation of paragraph (c) of subsection 1, the Commissioner may, in lieu of revocation, suspend the seller’s permit for a period not to exceed 90 days.

Nev. Rev. Stat. § 689.515 Agent’s license required to solicit sale of prepaid contract on behalf of seller; exception; administrative fine.

1. It is unlawful for any person to solicit the sale of a prepaid contract in this state on behalf of a seller unless the person holds a valid agent’s license issued by the Commissioner. 2. This section does not apply to a seller who holds a valid seller’s permit. 3. A person who solicits the sale of a prepaid contract in this state without a license or seller’s permit is subject to an administrative fine of not more than $1,000 for each violation.

Nev. Rev. Stat. § 689.520 Agent’s license: Qualifications; application; fees; conviction of or pleas to certain crimes by applicant or licensee sufficient ground for denial, suspension or revocation; fingerprints. [Effective until the date of the repeal of 42 U.S.C. § 666, the federal law requiring each state to establish procedures for withholding, suspending and restricting the professional, occupational and recreational licenses for child support arrearages and for noncompliance with certain processes relating to paternity or child support proceedings.]

1. To qualify for an agent’s license, the applicant: (a) Must file a written application with the Commissioner on forms prescribed by the Commissioner; (b) Must have a good business and personal reputation; and (c) Must not have been convicted of, or entered a plea of guilty, guilty but mentally ill or nolo contendere to, forgery, embezzlement, obtaining money under false pretenses, larceny, extortion, conspiracy to defraud or any crime involving moral turpitude. 2. The application must: (a) Contain information concerning the applicant’s identity, address, social security number, personal background and business, professional or work history. (b) Contain such other pertinent information as the Commissioner may require. (c) Be accompanied by the statement required pursuant to NRS 689.258 . (d) Be accompanied by the applicable fee established in NRS 680B.010 , which is not refundable, and, in addition to any other fee or charge, all applicable fees required pursuant to NRS 680C.110 . 3. A conviction of, or plea of guilty, guilty but mentally ill or nolo contendere by, an applicant or licensee for any crime listed in paragraph (c) of subsection 1 is a sufficient ground for the Commissioner to deny a license to the applicant, or to suspend or revoke the agent’s license pursuant to NRS 689.535 . 4. A natural person who is a resident of this State must, as part of his or her application and at the applicant’s own expense: (a) Arrange to have a complete set of his or her fingerprints taken by a law enforcement agency or other authorized entity acceptable to the Commissioner; and (b) Submit to the Commissioner: (1) A completed fingerprint card and written permission authorizing the Commissioner to submit the applicant’s fingerprints to the Central Repository for Nevada Records of Criminal History for submission to the Federal Bureau of Investigation for a report on the applicant’s background and to such other law enforcement agencies as the Commissioner deems necessary; or (2) Written verification, on a form prescribed by the Commissioner, stating that the fingerprints of the applicant were taken and directly forwarded electronically or by another means to the Central Repository and that the applicant has given written permission to the law enforcement agency or other authorized entity taking the fingerprints to submit the fingerprints to the Central Repository for submission to the Federal Bureau of Investigation for a report on the applicant’s background and to such other law enforcement agencies as the Commissioner deems necessary. 5. The Commissioner may: (a) Unless the applicant’s fingerprints are directly forwarded pursuant to subparagraph (2) of paragraph (b) of subsection 4, submit those fingerprints to the Central Repository for submission to the Federal Bureau of Investigation and to such other law enforcement agencies as the Commissioner deems necessary; and (b) Request from each such agency any information regarding the applicant’s background as the Commissioner deems necessary.

Nev. Rev. Stat. § 689.525 Agent’s license: Issuance; denial.

1. If the Commissioner finds that the application is complete and the applicant meets the requirements of NRS 689.520 after an investigation not to exceed 30 days, the Commissioner shall issue at the request of the holder of a valid seller’s permit an agent’s license to the applicant. 2. If the license is denied the Commissioner shall immediately notify the applicant and the seller that the applicant was to represent setting forth the reasons for the denial.

Nev. Rev. Stat. § 689.530 Agent’s license: Period of validity; renewal; fees for renewal; expiration. [Effective until the date of the repeal of 42 U.S.C. § 666, the federal law requiring each state to establish procedures for withholding, suspending and restricting the professional, occupational and recreational licenses for child support arrearages and for noncompliance with certain processes relating to paternity or child support proceedings.]

1. Each agent’s license issued or renewed pursuant to NRS 689.450 to 689.595 , inclusive, continues in effect for 3 years unless it is suspended, revoked or otherwise terminated. 2. An agent’s license may be renewed, unless it has been suspended or revoked, at the request of the holder of a valid seller’s permit upon filing a written request for renewal accompanied by all applicable fees for renewal and the statement required pursuant to NRS 689.258 . All applicable fees for renewal are not refundable. 3. An agent’s license which is not renewed expires on the renewal date. The Commissioner may accept a request for renewal which is received by the Commissioner within 30 days after the expiration of the license if the request is accompanied by a fee for renewal of 150 percent of all applicable fees otherwise required, except for any fee required pursuant to NRS 680C.110 , and the statement required pursuant to NRS 689.258 . 4. An agent’s license is valid only while the agent is employed by a holder of a valid seller’s permit. 5. As used in this section, “renewal date” means: (a) For the first renewal of the license, the last day of the month which is 3 years after the month in which the Commissioner originally issued the license. (b) For each renewal after the first renewal of the license, the last day of the month which is 3 years after the month in which the license was last due to be renewed.

Nev. Rev. Stat. § 689.535 Agent’s license: Revocation; suspension.

The Commissioner may proceed against an agent’s license in the same manner as provided in NRS 689.510 if the agent: 1. Obtained the license through misrepresentation or concealment of a material fact. 2. Is no longer qualified for such a license. 3. Knowingly violates any provision of NRS 689.450 to 689.595 , inclusive, or any lawful order or regulation of the Commissioner.

Nev. Rev. Stat. § 689.540 Prepaid contracts: Content; entire agreement; rescission.

1. All forms for a prepaid contract offered or sold in this state must contain: (a) The names and addresses of the seller, buyer, beneficiary and trustee and of each performer; (b) A clear and unambiguous statement of the services and merchandise to be supplied and by whom; (c) The purchase price of each item of supply or service and how payable; (d) The date and place of execution; (e) Other reasonable and appropriate provisions as prescribed by the Commissioner by regulation; (f) The full percentage of the sales commission to be retained by the seller; (g) The seller’s or his or her agent’s signature on the original contract and his or her identification by name and title on any duplicate copy of the contract given to the buyer; (h) A provision in 14-point type or larger, stating in substance that the buyer is permitted to return the contract within 10 days after its delivery to the buyer and to have the full purchase price or amount paid thereon refunded if the buyer is not satisfied with it for any reason; and (i) In print on its face sheet, in 14-point type or larger, a notice stating, “This is not an insurance contract.” 2. The written contract, when signed, constitutes the entire agreement between the parties relative to its subject matter. 3. If the buyer, pursuant to the provision required by paragraph (h) of subsection 1, returns the contract to the seller at the branch or home office of the seller or to the agent through whom it was purchased, the contract is void from the beginning and the parties return to the same position they occupied before the contract was entered into.

Nev. Rev. Stat. § 689.545 Prepaid contracts: Filing and approval and disapproval of forms; waiting period.

1. A seller shall not offer, sell or deliver in this state any prepaid contract unless the form of the contract has been filed with and approved in writing by the Commissioner. 2. The Commissioner shall disapprove any form of contract which the Commissioner finds: (a) Printed or reproduced in such a manner as to be substantially illegible in whole or in part; (b) Contains ambiguous or misleading provisions, clauses or titles; (c) Includes or combines in the prepaid contract provisions for the purchase of cemetery plots and existing burial spaces, unless such sales are separated and distinctly defined as burial merchandise and services; or (d) Does not comply or is inconsistent with any applicable requirement of NRS 689.450 to 689.595 , inclusive, Ê or for other good cause shown. 3. No amendment or modification of any form may be made unless the amendment or modification has been filed with and approved in writing by the Commissioner. 4. Each filing is subject to a waiting period of up to 30 days before it becomes effective. 5. Upon written application by the holder of a seller’s permit, the Commissioner may authorize a filing which the Commissioner has reviewed to become effective before the expiration of the waiting period or any extension thereof. 6. A filing shall be deemed to meet the requirements of NRS 689.450 to 689.595 , inclusive, unless disapproved by the Commissioner within the waiting period or any extension thereof.

Nev. Rev. Stat. § 689.550 Prepaid contracts: Credit life insurance.

If the purchase price for a prepaid contract is to be paid in installments, the seller may make available to the buyer credit life insurance on a form and terms filed with and approved by the Commissioner. The buyer must be provided with a certificate of the credit insurance by the seller or as otherwise required by the Commissioner.

Nev. Rev. Stat. § 689.555 Prepaid contracts: Maximum sales commission.

The sales commission on any prepaid contract must not exceed 40 percent of the purchase price.

Nev. Rev. Stat. § 689.560 Prepaid contracts: Maintenance and administration of trust fund; exception.

1. Except as otherwise provided in subsection 2: (a) The seller shall establish and maintain a trust fund with an authorized trustee, for the benefit of the beneficiary of the prepaid contract, in accordance with the trust agreement filed with and approved by the Commissioner. (b) The seller shall maintain unimpaired and shall deposit in the trust fund, within 15 days after the end of the month in which payment was received, all installments received on prepaid contracts sold after the sales commission has been deducted. (c) The trustee shall, with respect to the money in the trust fund, exercise the judgment and care under the circumstances then prevailing which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not in regard to speculation, but in regard to the permanent disposition of their money, considering the probable income as well as the probable safety of their capital. Within the limitations of such standards, and subject to any express provision or limitation contained in any particular trust instrument, a trustee may acquire and retain every kind of investment, specifically including bonds, debentures and other corporate obligations and stocks, preferred or common, which persons of prudence, discretion and intelligence acquire or retain for their own account. (d) The trustee shall, except as otherwise provided in NRS 689.450 to 689.595 , inclusive, or the trust agreement approved in writing by the Commissioner or as may be required by an order of a court of competent jurisdiction, maintain the trust fund intact and unimpaired and not make any payment or disbursement from the trust fund. 2. The requirements of subsection 1 do not apply if: (a) The prepaid contract is payable solely from the proceeds of a policy of life insurance; and (b) The seller of the prepaid contract does not collect any money from the purchaser of the prepaid contract.

Nev. Rev. Stat. § 689.565 Prepaid contracts: Distributions to seller from trust fund; required amounts for reserve and liabilities in trust fund; filing of financial reports by trustee; fee and penalty related to such reports; determination of total value of trust.

1. Not more than 60 percent of the earnings of such investments, including capital gains, as they accrue and are received, may be disbursed by the trustee to the seller or his or her designee. The remainder of any earnings must be held by the trustee to establish a reserve for securities valuation until the reserve equals 40 percent of the total trust liabilities. 2. The trustee shall maintain in the trust fund an amount of money equal to 125 percent of the total trust liabilities. 3. If money in the trust fund is invested or reinvested in: (a) Securities which are issued or guaranteed by the United States of America; (b) Bonds of this state or the bonds of any other state; (c) Bonds of counties or municipalities of any state; (d) Deposits in any bank, credit union, savings and loan association or savings bank that is federally insured or insured by a private insurer approved pursuant to NRS 672.755 ; or (e) With the written approval of the Commissioner, any investment which has guaranteed liquidity, Ê then no earnings of those investments, including capital gains, if any, as such earnings accrue and are received, may be disbursed by the trustee to the seller or his or her designee which would reduce the corpus of the trust fund below 100 percent of the required value of the trust. Earnings in excess of 100 percent of the required value of the trust or 125 percent of the total trust liability, whichever is appropriate, may be distributed annually. 4. Earnings are defined as any sum remaining in the trust fund after deducting costs of administration over and above 100 percent of the required value of the trust. 5. Every trustee handling money in a trust fund pursuant to NRS 689.450 to 689.595 , inclusive, shall file with the Commissioner, within 15 days after the first day of each calendar quarter, a financial statement showing the activity of all trusts required to be maintained by any seller and the total market value of each trust as of the first day of the calendar quarter. The statement for the fourth quarter must be a summary of all transactions involving the account. The statement must be on forms prescribed and adopted by the Commissioner. Every quarterly report must be accompanied by a fee of $10. If the statement is not received by the Commissioner as required, the Commissioner may, after giving the seller 10 days’ written notice, revoke the seller’s permit. 6. The trust must be valued quarterly and averaged annually to determine the total value of the trust. If the average market value of the trust as of December 31 of each year is below 100 percent of the required value of the trust or 125 percent of the total trust liability, the Commissioner may suspend the seller’s permit until the deficiency is made up.

Nev. Rev. Stat. § 689.570 Prepaid contracts: Distributions from corpus of trust fund.

1. The corpus of all money deposited in the burial merchandise and service trust fund must be kept unimpaired until the prepaid contract is performed on the death of the person for whose benefit the contract was made, or the contract is otherwise terminated and distribution or disposition of money in the trust fund is made as authorized in accordance with applicable law and the rights of interested persons. 2. Upon receiving a certified copy of a death certificate or a certification by the cemetery authority that a particular prepaid contract has been fully performed, the trustee of the burial merchandise and service trust fund shall pay all money in the trust fund for that contract to the cemetery authority. 3. The trustee shall not make any payments out of the trust fund unless the trustee receives a death certificate or certification as provided in subsection 2. In paying out money in such circumstances, the trustee may rely upon all such death certificates and certifications presented to the trustee which appear valid on their faces, and the trustee is not liable to any person for paying out money upon such reliance.

Nev. Rev. Stat. § 689.575 Prepaid contracts: Termination upon notice from buyer or demise of buyer; action by trustee or seller; required provision related to termination for default in payment.

1. Except as otherwise provided in subsection 2, if the buyer moves to another geographic area beyond the normal service facilities of the seller and performers under the prepaid burial merchandise and service contract, the contract automatically terminates upon the buyer’s written notice to the seller and trustee of the move of the buyer and of the desire of the buyer to terminate the contract. The trustee, as soon as reasonably possible after receipt of the notice, shall refund to the buyer all money, including earned interest, in the trust fund held for the buyer’s account. 2. If the contract continues in force and the buyer is not in default thereunder, upon the demise of the buyer, the contract automatically terminates. Upon termination, the seller shall: (a) Furnish the merchandise and perform or arrange to perform the services; (b) Make arrangements for the fulfillment of the agreement on a dollar-for-dollar basis with another performer serving the area to which the buyer has moved; or (c) Refund to the buyer or the representative or estate of the buyer, or transfer to a substituted performer, all money, including earned interest, in the trust fund held for the buyer’s account. 3. The cemetery authority shall include a provision in each prepaid contract substantially stating: “If the purchaser defaults in making any payment under this contract, the cemetery authority may terminate the contract and is entitled to retain as damages not more than 40 percent of the total purchase price. The balance remaining, if any, must be refunded to the purchaser.”

Nev. Rev. Stat. § 689.580 Prepaid contracts: Termination on insolvency or other inability of seller to perform unless assigned; distribution of money in trust fund.

1. An executory prepaid contract automatically terminates if the seller or any performer under the contract goes out of business, dies, becomes insolvent or bankrupt, makes an assignment for the benefit of creditors or is otherwise unable to fulfill the obligations under the contract, unless the successors or assignees of the business agree to accept all liability and to fulfill all obligations as originally set forth in the contract. 2. Upon any such termination, the money in the trust fund, including earned interest, held by the trustee for the account of the buyer must be distributed by the trustee to the buyer or to a qualified seller or performer assuming the outstanding contractual liabilities, as authorized by the Commissioner.

Nev. Rev. Stat. § 689.585 Records of seller; examination by Commissioner.

1. Every seller shall keep: (a) Accurate accounts, books and records of all transactions; (b) Copies of all agreements and dates and amounts of payments made and accepted; (c) The names and addresses of the contracting parties; and (d) The persons for whose benefit the payments are accepted and the names of the depositories in which the payments are deposited. 2. The seller shall keep within this State, at the address shown upon the permit of the seller, complete records of all transactions under the permit. Those records and the affairs of the seller are subject to audit and examination by the Commissioner at any reasonable time. Any costs incurred by the Commissioner to conduct an audit or examination must be paid by the seller. 3. The seller shall keep such records for not less than 5 years after the completion of all transactions to which they relate.

Nev. Rev. Stat. § 689.590 Exemption of person maintaining cemetery but not operating as cemetery on July 5, 1971.

The provisions of NRS 689.450 to 689.595, inclusive, do not apply to a person maintaining a cemetery but not operating as a cemetery authority on July 5, 1971.

Nev. Rev. Stat. § 689.595 Applicability of other provisions to agents, sellers and applicants for permit.

1. The provisions of NRS 683A.341 , 683A.451 , 683A.461 and 686A.010 to 686A.310 , inclusive, apply to agents and sellers. 2. For the purposes of subsection 1, unless the context requires that a section apply only to insurers, any reference in those sections to “insurer” must be replaced by a reference to “agent” and “seller.” 3. The provisions of NRS 679B.230 to 679B.300 , inclusive, apply to sellers. Unless the context requires that a provision apply only to insurers, any reference in those sections to “insurer” must be replaced by a reference to “seller.” 4. The provisions of NRS 683A.301 apply to applicants for and holders of a seller’s permit. Unless the context requires that a provision apply only to an applicant for or a holder of a license as a producer of insurance, any reference in that section to: (a) An “applicant for a license as a producer of insurance” must be replaced by a reference to an “applicant for a seller’s permit”; and (b) A “licensee” must be replaced by a reference to a “holder of a seller’s permit.”

Nev. Rev. Stat. § 689.700 Money in trust fund exempt from attachment and other process in absence of fraud.

In the absence of fraud, all money in a trust fund held or invested in accordance with the provisions of this chapter is not liable to attachment, garnishment or other process or to be seized, taken, appropriated or applied to pay any debt or liability of the seller, buyer, beneficiary or performer by any legal or equitable process or by operation of law.

Nev. Rev. Stat. § 689.715 Preneed sales agreement required to be provided by funeral director, funeral arranger or cemetery authority to person entitled to custody of remains of buyer; administrative fine.

1. A funeral director, funeral arranger or cemetery authority that enters into a preneed sales agreement shall, upon the death of the buyer, provide a copy of the agreement to each person entitled to custody of the remains. 2. The Commissioner may impose upon any person who knowingly violates the provisions of subsection 1 an administrative fine of three times the amount of the preneed sales agreement.

Nev. Rev. Stat. § 689.730 Criminal penalty.

In addition to any other penalty provided for in this chapter, any person who violates any provision of this chapter or any rule or regulation promulgated pursuant to this chapter, for which a greater penalty is not otherwise provided by law, is guilty of a misdemeanor.
Source: NV Statutes (Official Site)URL: https://www.leg.state.nv.us/nrs/NRS-689.htmlFetched: 10/4/2026

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