If you are a cemetery company in Tennessee, you are likely aware of the state’s Cemetery Company Surety Bond requirement. This bond guarantees that your company will comply with all state laws and regulations relating to cemeteries. In this blog post, we will discuss who needs to carry this bond and what it covers.
What is a Tennessee Cemetery Company Bond?
A Tennessee Cemetery Company Bond is a type of surety bond used by cemetery companies in the state of Tennessee. The bond protects consumers from any unethical or fraudulent activities that may occur on behalf of the cemetery company.
How to obtain a Tennessee Cemetery Company Bond?
To obtain a Tennessee Cemetery Company Bond, the business must prove to the surety carrier that it is financially stable and can handle all costs associated with providing cemetery services. Once this has been established, the surety company will issue a bond for a predetermined amount for the cemetery company’s use.
How does a Tennessee Cemetery Company Bond work?
The bond guarantees that any losses or damages incurred due to the negligence of the cemetery company will be paid for by the surety company up to the bond limit. This provides peace of mind for consumers who are entrusting their loved one’s burial arrangements to a particular cemetery company.
Who is required to carry the Cemetery Company Surety Bond in Tennessee?
In Tennessee, all cemeteries must be licensed and bonded by the state. The bond requirement is outlined in Tennessee Code Annotated 62-5-105. The cemetery company surety bond ensures that a cemetery or funeral home business will comply with local laws and regulations as well as fulfill its obligations to customers.
The cemetery or funeral home business, known as the Principal, is responsible for any claims that may arise due to their failure to abide by local laws and regulations or fulfill obligations to customers. If a claim is made against the bond, the surety company will investigate the claim and decide whether or not it is valid.
What is the cost of the Tennessee Cemetery Company Surety Bond?
The cost of the Tennessee Cemetery Company Surety Bond can vary depending on the size and complexity of your business. Generally, the bond amount will range from $500 to $50,000. The cost of a surety bond is typically a percentage of the full bond amount. For example, if you are required to purchase a $10,000 surety bond, you may have to pay a premium of $187.50 (1.875% of the bond amount). It is important to note that surety bond prices can vary significantly based on your credit score, financial history, and other factors.
Why do I need Tennessee Cemetery Surety Bond?
Tennessee Cemetery Surety Bonds are required by the Tennessee Department of Commerce and Insurance. These bonds ensure that a cemetery company will comply with all applicable laws and regulations regarding its operation. This includes adhering to financial obligations related to maintaining the grounds, collecting funds for plots, grave services, or any other products provided by the cemetery.
Tennessee Cemetery Surety Bond claims?
These surety bond claims can arise for a variety of reasons, such as non-payment of burial expenses or unlicensed cemetery operators. In the event of a surety bond claim, the bondholder may submit a request for reimbursement from the surety company to help make up for any financial losses incurred by the public.
What is the Tennessee Cemetery Surety Bond claims process?
The Tennessee Cemetery Surety Bond Claim process is fairly straightforward and involves filing a complaint with the State Board of Funeral Directors & Embalmers. The claim must include documentation of the cemetery’s financial obligation and an itemized list of damages that were incurred as a result of the breach. After the claim is submitted, the surety company will review all documents provided and either approve or reject the claim. If approved, they will then issue a reimbursement to cover any losses incurred by the public.
Is Tennessee Cemetery Surety Bond renewable?
Yes, the Tennessee Cemetery Surety Bond is renewable. The bond can be renewed upon expiration and must be kept in effect to remain compliant with the Tennessee Funeral and Cemetery Services Act of 1998. Renewal of this bond can be done either by submitting a renewal application directly to your surety provider or by having your surety provider contact you before expiration.