Rule 35. Prohibited Acts

35.1.   As commission, the Pre-Need Company shall not pay in cash or securities, directly or indirectly, any amount in excess of ten per cent (10%) of the Contract Price of the plans authorized to be sold, payable only from the proceeds of the sale thereof, as and when they are actually collected and received by the  Issuer, and provided that the amount of the commission herein granted shall be paid only to duly registered dealers or agent who effected the sale.  However, no payment of commission shall be made if plans have not been actually sold by the dealers or agents, but were purchased by the buyers directly from the Pre-Need Company.

35.2.  The issuance/sale of Pre-Need Plans in excess of the amount authorized under a registration granted to the issuer shall be penalized by a fine, in such amount depending on the frequency of the violation and/or by suspension of operation:

35.3.  Overpricing of plans above the amounts stated under said registration shall be penalized by a fine.

35.4.  Financial Statements submitted to the Commission shall adhere strictly to the PNUCA set forth in these Rules.  Any  Financial Statement filed not in accordance with the PNUCA shall be considered as not having been filed, and subject the Pre-Need Company to the corresponding penalties imposed by the Commission.

35.5.   Any person who issues a false or misleading statement or omits to state a material fact when required to do so and who prepares certifications required in these Rules containing such false or misleading information shall be barred from practicing his profession in the Commission without prejudice to criminal or civil liabilities imposed under the Revised Securities Act.

Back        Next