Rule 13. Disclosure to Prospective Planholders

13.1.  No Pre-Need Plans registered with the SEC shall be sold unless an Information Brochure has been filed pursuant to Rule 4.1,par.4 (c) and approved by the SEC together with the Registration Statement and is made available to the prospective Planholder .

13.2.    The Information Brochure shall contain the following information:

a.)    Name, address, telephone number and identity of the person to contact to answer any questions or address any complaint;

b.)    The name and address of the trustee who will manage the Trust Fund;

c.)    Name, address, telephone number and identity of agent, if any;

d.)    A statement that the salesmen of the Pre-Need Company or the Agent has been authorized to sell Pre-Need Plans and licensed by the SEC, indicating that the Planholder can check these data with the office of the Pre-Need Company or the Agent;

e.)    A statement that :

i.)     The Pre-Need Company is required to contribute a certain percentage of payments received to a Trust Fund to be administered by a Trustee ;

ii.)     To monitor the performance of the Trust Fund and the solvency of the Pre-Need Company, the Pre-Need Plan Company is required to file financial statements and audited reports with the SEC which may be inspected by Planholders at the Non-Traditional Securities and Instruments Dept.;

iii.)     Any default in payment  which continues for more than  two (2) years from  date of lapse of the grace period of sixty (60 ) days will result in the cancellation of the plan contract and the forfeiture of any claims of  the Planholder.

13.3.  An Information Brochure shall not be used  if the information contained therein is outdated or does not accurately reflect the terms of the  Plan or the financial ability of the Pre-Need Company through the use of Trust Fund Assets. In such cases the Pre-Need Company shall submit an updated Information Brochure for approval of the SEC.

13.4.  The SEC may suspend the Permit to sell Pre-Need Plans when there is a material change in the Information contained in the Information Brochure.

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