Preneed: A Pandora's Box of Problems
Funeral directors will attempt to leverage the Funeral Service Insider’s report about the NPS contributions to state politicians, but they should do so with caution.
The story does not paint the entire picture of NPS’ efforts to influence the politics that controlled Missouri’s preneed industry. The amount attributed to the Missouri efforts ($168,000) seems low. Granted it…
Everyone complains about continuing education, but occasionally the concept is reinforced when a timely program provides needed insight. Such should be the case when the Missouri Funeral Directors and Embalmers Association sponsors a class on the tax consequences of servicing an NPS contract.
Funeral directors need to understand that they do not necessarily incur a tax…
The Cassitys have a rearguard strategy after all.
The Texas Department of Insurance paid a price for gaining control of NPS and its sister insurance companies: A Rule 11 Agreement. Texas has agreed to not bring litigation against the companies, or various individuals and firms related to NPS. A very steep price, but…
As news of the NPS meltdown began to leak last month, several proposals to reform Missouri’s preneed law were hastily drafted. Not knowing the extent of NPS’ problems, some reform advocates felt the need to strike while the iron was hot.
Even as the legislative session ended on May 16th, it was not clear whether…
One positive aspect of Texas appointing a “Rehabilitator” for NPS and its sister insurance companies is the emergence of a single authority over the NPS empire, a godfather so to speak. Rather, a Godmother.
Funeral directors have been chasing legislators, regulators, government officials, and judges for help. This is quite understandable when your entire preneed program was…
The dominoes are beginning to fall. The Texas Department of Insurance has disclosed that Lincoln Memorial and its sister Memorial Service Life have been put into receivership. The Department’s website provides a copy of the order appointing a Donna J. Garrett as the companies’ rehabilitator, and a Q&A for consumers.
David L. Bingham, Jr. (Junior) is getting his 15 minutes of fame.
The Associated Press ran Junior’s story about the wrong David L. Bingham, Sr. having been buried next to his mother. The cemetery has offered Junior some options for correcting the misburial, but he has rejected them all. A demand for compensation is in the…
Yesterday, the St. Louis Post-Dispatch ran an article that examined the history of NPS, and raised some of the questions that need to be explored in depth in the months to come. The system failed in several states, for both consumers and funeral homes. While most funeral homes will try to make good on the…
The Missouri preneed industry faces a long and stormy summer.
The Missouri legislature seems to be listening to regulators’ requests for much needed authorities for examinations, audits and rulemaking. A draft bill providing emergency powers to the Division of Professional Registration has emerged as legislation that may be signed into law before the current session ends…
On Wednesday, April 30th, the Missouri Department of Insurance fired off the first salvo in the legal proceedings to recover funds from Lincoln Memorial Life Insurance Company. In an effort to prepare those affected by the NPS meltdown, the Missouri State Board of Embalmers and Funeral Directors and the Division of Professional Registration have…