Which may an applicant to assign a funeral establishment's license obtain if the applicant cannot submit an audit report regarding the accuracy of the preneed trust?

• A. A surety bond in an amount equal to 150 percent greater than the corpus of the trust, if approved by the bureau
• B. A surety bond in an amount equal to 50 percent greater than the corpus of the trust, if approved by the bureau
• C. A surety bond in an amount equal to 150 percent greater than the corpus of the trust, if approved by the trustee
• D. A surety bond in an amount equal to 50 percent greater than the corpus of the trust, if approved by the trustee

Answer: (A)

When an applicant cannot submit an audit of the preneed trust, the regulation provides a fallback to protect the funds: post a surety bond in a set amount. The required amount is 150 percent of the corpus of the preneed trust, and the bond must be approved by the Bureau. This arrangement gives the regulatory body a financial remedy to rely on if audit verification isn’t available, ensuring consumer funds remain safeguarded.

The bureau’s approval is key because it’s the agency overseeing license eligibility and trust protection, not the trustee. A bond approved by the trustee wouldn’t satisfy the regulatory requirement, and a smaller bond (50 percent) wouldn’t meet the mandated protection level.