2016 PRENEED RENEWALS
ATTENTION: APPLICATIONS & FEES ARE DUE JULY 1
ONLINE SUBMISSION REQUIRED
The default period begins July 2nd; fines of $50 per day will automatically begin to accrue. No preneed sales should occur while in default. Renewals not submitted online by September 1st, will result in expiration of the Certificate of Authority, and in the termination of any related Branch and Preneed Sales Agent Registrations.
Hardcopy financial statements are not required, unless specifically requested. Instead, the Certificate Holder will enter and submit key financial figures from its most recent year-end financial statements online.
For more details visit: www.aldoi.gov/preneed
Each Certificate Holder should have received an e-mail in mid-April with their user name and password. If not, contact the Preneed Division: (334)240-4420 or preneed@insurance.alabama.gov.
BELOW ARE SCREENSHOTS AND EXPLANATIONS FOR THE BLANKS AND QUESTIONS YOU WILL SEE IN THE ONLINE RENEWAL.
LOG-IN: www.aldoi.gov/PreneedOnline
Your log in is your COA # and a password which we e-mailed you in April.
Once logged in, you will see the following screen:
Preneed Sales Agent Renewal: For your convenience, from the initial log-in screen, this link will take you to the NIPR website to renew your Preneed Sales Agents. Preneed Sales Agents must be renewed before your COA and Branch Registration renewals will be approved.
Submit Renewal Information: Click this link to submit the renewal application for your COA, and pay the renewal fees for your COA and Branch Registrations. When you renew your COA, so long as the invoice is paid, your Branch Registrations, if any, will also be renewed.
After Clicking “Submit Renewal Information," verify the Company listed is the correct company and the correct year is displayed.
The Holding Company types are for those entities that are not physical funeral home or cemetery locations and do not actually sell preneed/at-need merchandise and services, but for reporting purposes own a number of physical branches which are combined in the financial statements. The Combination is for entities that operate a combined funeral home/cemetery as one entity. Usually, the combination operation is one in which the funeral home and cemetery are located physically near each other, with a shared name and a common owner. The locations share a COA/branch registration & financial statements; there is usually only one log, but both funeral home and cemetery contracts may be used.
Select the Certificate Holder’s Organizational Structure. Most are organized as an LLC or C-Corporation. If you are unsure, check the Secretary of State’s website: http://arc-sos.state.al.us/CGI/CORPNAME.MBR/INPUT
Who prepared the financial figures? We may contact the preparer with questions regarding the reported financial figures.
FINANCIAL STATEMENT INFORMATION
Your Preneed Receivables should be divided into Pre-law (Preneed written prior to May 1, 2002) and Post-Law (Preneed Contracts written May 1, 2002 through the end of the company’s fiscal year). Trust Funded - total of future preneed payments by preneed purchasers plus the amount already in trust. Insurance/Annuity Funded – total face amount of life insurance/annuity purchased to fund the preneed contracts. Letter of credit or a surety bond – total of future preneed payments by preneed purchasers at the date of the financial statement. Add all funding methods for Pre-law (enter "0" if none) and all for Post-law.
If your financial statements include a line item for Goodwill, then enter it here. If you are not carrying Goodwill, then enter “0”.
This should be the total of all of your assets (cash, investments, inventory, property, Goodwill (if any) and your Preneed Receivables already entered above, etc.). This should not include any funds held in an Endowment Care Account other than earnings that may be used by a cemetery for the upkeep of a cemetery
Regardless of funding method, the current cost to fulfill the Pre-law (prior to May 1, 2002) preneed contracts. If you have no pre-law, enter “0”.
Regardless of the funding method, the retail value of the unfulfilled preneed contracts entered into May 1, 2002, and later.
This is the total of all liabilities (accounts payable, loans and other debt, taxes, and Deferred Preneed Revenue already entered above, etc.). This should not include any endowment care funds unless there is an amount due to be trusted in endowment care for interment rights sold/paid in full.
Assets – Liabilities = Equity. This amount includes retained earnings, stock, additional paid-in capital, etc. Depending on the type of company, this may be unassigned or unrestricted funds. This should not include any endowment care funds held in trust.
All sources of Income less cost of sales and other expenses, including income taxes. The amount reported on the Income Statement or Tax Return.
For further assistance in the calculation of any of the above figures, please visit our website: http://www.aldoi.gov/Preneed/FinancialStatements.aspx
You may also wish to contact your Preparer, CPA, Bookkeeper or the Preneed Division.
Renewal Questions
We are interested in the method used in preparing your Financial Statements, which were used to provide the financial figures above. If you have changed methods since last year, we will need to know that as well. In the past, we have only accepted GAAP or Statutory.
You must notify the Department regarding changes in ownership. This may be as simple as one shareholder sold their shares or passed away and the stock has been divided between the heirs or other shareholders, etc.
If your contact information changes, you must notify the Department.
If you have filed bankruptcy, you are required to notify the Department. You will be required to file the details of that bankruptcy before you will be allowed to proceed with the renewal.
You will be asked about additional locations that operate under the same name, but do not hold a separate COA or Branch Registration. The Department receives calls from consumers regarding licensing, so we would like to have the correct answer as to whether the location is legally allowed to sell Preneed. We also plan to post a list for consumers.
Once you have clicked the “Submit renewal and pay invoice” button and your information has passed all of our checks, you will be re-directed to a screen to pay your invoice which includes your COA and Branch Registrations. After July 1ST, it will also include a $50 per day late fee.
Your Renewal Application will not be submitted for our review and approval until paymentis submitted.