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Why Would I Need a Tennessee Cemetery Improvement Care Trust Fund Bond?

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The State of Tennessee Department of Commerce and Insurance, Board of Funeral Directors and Embalmers, the Burial Services/Cemetery Division, oversees the requirements for the Improvement Care Trust Funds mandated by legislation. The establishment of the fund is to protect consumers who purchase cemetery and funeral property services from cemetery companies. The Tennessee Code Annotated Title 46 Chapter 1 Part 2 defines the fidelity and surety bond requirements for improvement care trust funds for cemetery companies.

Surety& Fidelty Bond Requirements:

  1. Obtain a $100,000 fidelity bond or more based on the number of officers and employees of the cemetery company that handle money and securities.
  2. Cemetery companies must submit an annual financial report to the Board that includes a copy of the fidelity bond indicating the amount of coverage, the classification of employees, the surety name and policy number and ending date.
  3. Fidelity bond requirements may be waived by the Division if the cemetery company has $40,000 or less (in cash, investments and assets) and if the company submits documentation that all financial transactions require two or more signatures from designated cemetery officials.
  4. If cash, investments, and assets exceed $40,000, the cemetery company has 60 days from the date of notification from the Division to obtain a fidelity bond.
  5. The cemetery company must have a trust agreement as required in the Tennessee Code Annotated Title 46 Chapter 1 Part 2 Section 204.
  6. Obtain a surety bond based on the population based on the federal census:
  • Population of 10,000 or under- bond amount $40,000
  • Population of 10,001 to 15,000- bond amount $60,000
  • Population of 15,001 to 20,000- bond amount $80,000
  • Population of 20,001 to 100,000- bond amount $100,000
  • Population of 100,001 or more- bond amount $200,000
  • Instead of a bond, a cash deposit of equal amount can be deposited with the state
  • How Much Will a Tennessee Cemetery Trust Fund Bond Cost?

    The premium that you pay for a Tennessee Cemetery Improvement Care Trust Fund Surety and/or Fidelity Bond will vary depending on the bond amount, type of bond and credit. Applicants may also need business and personal financial statements. Our rates start at low as 1% of the bond amount with good credit. Fidelity rates are based on the number of employees handling funds, starting as low as $360 for under five employees. Contact our Surety Bond Specialists for a free quote.

    Did You Know?

    The above requirements apply to all established, new, and an addition to an existing cemetery company on or after January 1, 2007.

    Related Links:

    Improvement Care Trust Fund
    Tennessee Code 2010 Title 46 Chapter 1 Part 2 Section 203
    Tennessee Code 2010 Chapter 1 Part 2 Section 202

    More Surety Bond Questions?

    Check out our FAQ page or What’s a Surety Bond? page. Should you need or choose to buy a surety bond, buy from us. SuretyGroup.com has been underwriting surety bonds throughout the U.S. for more than 35 years. When you work with us, you enjoy the unique benefit of dealing with a team of highly experienced surety agents with in-house underwriting authority. This allows you to receive competitive, low rates, quick approvals, and immediate bond delivery. In most cases, your bond will be delivered within 24 hours after you apply for it.


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