Alabama § 34-13-197 - Inactive Certificate Holder; Surrender of License.
Full text of Alabama Code of Alabama § 34-13-197 — Inactive Certificate Holder; Surrender of License., with citation guidance and answers to common questions.
§ 34-13-197. Inactive Certificate Holder; Surrender of License.
(a) A certificate holder shall be considered inactive upon the acceptance of the surrender of its license by the board or upon the nonreceipt by the board of the certificate of authority renewal application and fees.
(b) A certificate holder shall cease all preneed sales to the public upon becoming inactive. The certificate holder shall collect and deposit into trust all of the funds paid toward preneed contracts sold prior to becoming inactive.
(c) Any certificate holder desiring to surrender its license to the board shall first do all of the following:
(1) File notice with the board.
(2) Submit copies of its existing trust agreements.
(3) Submit a sample copy of each type of preneed contract sold.
(4) Resolve to the satisfaction of the board all findings and violations resulting from the last examination conducted.
(5) Pay all outstanding fines and invoices due the board.
(6) Submit its current certificate of authority.
(d) Upon receipt of the notice, the board shall review the certificate holder’s trust funds, trust agreements, and evidence of all outstanding preneed contracts.
(e) After a review to the satisfaction of the board, the board shall terminate the certificate of authority by an order that shall set forth the conditions of termination established by the board to ensure that the preneed funds will be available for their intended purpose.
(f) The trust fund of the certificate holder shall be held intact and in trust after the certificate holder has become inactive, and the funds in that trust shall be disbursed in accordance with the requirements of the written contracts until the funds have been exhausted.
(g) The board shall continue to have jurisdiction over the inactive certificate holder as if the certificate were active and to require the reports and inspect the records as the board deems appropriate so long as there are funds in trust or preneed contracts that are not fulfilled.
(h) Other terms of revocation or suspension ordered pursuant to this chapter may apply.
Source: official Alabama text · Last verified 2026-08-27
Frequently Asked Questions About Alabama § 34-13-197
What does Code of Alabama § 34-13-197 cover?
Section 34-13-197 ("Inactive Certificate Holder; Surrender of License.") is part of the Code of Alabama, the codified statutory law of Alabama. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Alabama § 34-13-197?
A common citation format is "Code of Alabama § 34-13-197" (Alabama). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Alabama law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Alabama official source linked on this page or consult a licensed Alabama attorney.
How does Alabama § 34-13-197 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Alabama can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Alabama.