(a)
(1) An officer, director, agent, or employee of an organization subject to this chapter who makes, or attempts to make, a contract in violation of this chapter, or refuses to allow an inspection of the organization's records shall be punished by a fine of not less than one thousand dollars ($1,000) and not more than ten thousand dollars ($10,000), or by imprisonment in the county jail for at least six (6) months and not more than twelve (12) months, or by both fine and imprisonment.
(2)
(A) An officer, director, agent, or employee of an organization is guilty of a Class D felony if the officer, director, agent, or employee:
(i) Collects contract proceeds on cash-funded prepaid funeral contracts and fails to deposit the proceeds with a trustee as required under § 23-40-114; or
(ii) Collects proceeds on insurance-funded or annuity-funded contracts, or both, and fails to forward the proceeds to the insurance company or the third-party administrator within twenty (20) business days.
(B) A person convicted of a violation of § 23-40-114 shall be ordered to pay restitution to persons aggrieved by the violation.
(C) Restitution shall be ordered in addition to a fine or imprisonment.
(b) Each violation of any provision of this chapter shall be deemed a separate offense and prosecuted individually.
(c) The Criminal Investigation Division shall have jurisdiction to investigate and prosecute any officer, director, agent, or employee of any organization who collects contract proceeds on cash-funded prepaid funeral contracts and fails to deposit such funds with a trustee as required under § 23-40-114.
Structure Arkansas Code
Title 23 - Public Utilities and Regulated Industries
Subtitle 2 - Financial Institutions And Securities
Chapter 40 - Arkansas Prepaid Funeral Benefits Law
§ 23-40-104. Arkansas Insurance Code not affected
§ 23-40-105. Burial associations exempted
§ 23-40-106. Violations — Penalties
§ 23-40-107. Division of Prepaid Funeral Benefits — State Insurance Department Prepaid Trust Fund
§ 23-40-110. Application for initial or renewed permit
§ 23-40-111. Issuance of permit — Cancellation or denial
§ 23-40-112. Prepaid funeral benefits contracts
§ 23-40-113. Change of ownership
§ 23-40-114. Trust funds — Creation — Deposits, withdrawals, and transfers of funds
§ 23-40-115. Trust funds — Investments
§ 23-40-116. Trust funds — Disbursements
§ 23-40-117. Trust funds — Exemption from attachment, etc
§ 23-40-118. Agent for deposit of contract proceeds
§ 23-40-119. Annual report and fee
§ 23-40-120. Records required — Examination
§ 23-40-122. Cancellation or transfer
§ 23-40-123. Delinquency proceedings
§ 23-40-126. Unfair competition or unfair or deceptive acts or practices prohibited — Penalties