Death Care Compliance Law

Death Care Compliance Law

Preneed: A Pandora's Box of Problems

William Stalter is the founder of Stalter Legal Services and the Preneed Resource Company. Bill focuses his law practice on preneed and death care compliance, serving banks, funeral homes, crematories, and cemeteries. He has written multiple published articles

Tag Archives: Exams/audits

The MFT Complaint: Rollovers and Common Trust Funds

Posted in Administration, Investments, Recordkeeping, Reporting
In paragraphs 39 through 52, and paragraphs 79 through 95, of the Complaint filed against the Missouri Funeral Trust, the State Board of Embalmers and Funeral Directors raises issues with regard to the preneed trusts that were transferred by funeral homes to MFT.  The re-write of Missouri’s preneed law in 2009 provided the MFT an… Continue Reading

MFT Complaint: Canceled and Performed Contract Accounts

Posted in Exams/audits, Missouri - SB1, Recordkeeping
The next claim made in the Missouri State Board Complaint against the Missouri Funeral Trust is that the program is holding funds for preneed contracts that have either been serviced or canceled.   The Complaint cites Section 436.456 as legally requiring the MFT trustee to distribute an account’s funds when it receives documentation that the contract… Continue Reading

The MFT Complaint: Principal in Excess of the Preneed Contract

Posted in Compliance, Exams/audits, Missouri - SB1, Recordkeeping
Paragraph 26b of the Complaint filed by the Missouri State Board of Embalmers and Funeral Directors alleges that the Missouri Funeral Trust fails to maintain “records that explain why the principal held in trust exceeds the face value of the preneed contract associated with that account…”  We anticipate that this claim is considering the contract… Continue Reading

Missouri’s Longest Preneed Audit: Continued until October

Posted in Exams/audits, Master Trusts, Missouri - SB1, Recordkeeping, Uncategorized
After five months of trading Complaints and Answers, the Missouri State Board of Embalmers and Funeral Directors and the Missouri Funeral Trust have been assigned an October hearing date before the Administrative Hearing Commission.   The dispute between the State Board and the MFDEA’s master trust program has been waging for years over issues such as… Continue Reading

Round 2 of Missouri’s Preneed Exams: The Document Request

Posted in Exams/audits, Missouri - SB1
It has been more than a year since the Missouri State Board of Embalmers and Funeral Directors approved the expansion of the scope of financial examinations.  Consequently, preneed sellers up for their second preneed audit are receiving notices that request the following reports and documents: A current statement from your state or federally chartered financial… Continue Reading

Missouri Rule Rollback: The 18 Month Deadline

Posted in Missouri - SB1
Keeping true to a campaign promise, one of the first acts of Missouri Governor Eric Greitens was to issue an executive order that gives each state agency until June 30, 2018 to repeal or cease any regulation that is ineffective, unnecessary of unduly burdensome.  The Governor’s order sets out the following review procedures: Every State… Continue Reading

Missouri’s Adequate Seller Records: the Contracts and Agreements

Posted in Compliance, Exams/audits, Recordkeeping
In our continuing review of the Missouri Seller Record Keeping proposal, the rule next addresses what a preneed seller must retain with regard to its consumer contracts.  However, the proposal actually contains two sections requiring the retention of contracts and agreements (Section 2.A and Section 2.F). Of the two, Section 2.F is the more detailed:… Continue Reading

Missouri Seller Record Keeping: A Misstep Right out of the Box

Posted in Compliance, Exams/audits, Missouri - SB1, Recordkeeping
The purpose for a record keeping rule is to inform licensees what reports and documents that they must either maintain, or create, to enable the preneed examiner to determine compliance with state law requirements.  But, the opening paragraph of the proposal given the Missouri State Board puts the cart in front of the horse: A… Continue Reading

Missouri Preneed Records: Disbursements

Posted in Compliance, Exams/audits, Missouri - SB1, Recordkeeping, Reporting
When the State Board first discussed the seller records proposal in December 2015, the disbursements records drew complaints from industry members that the examination process was delving too deeply into how funeral homes were conducting their business.   Some comments were directed at whether examiners would review statements of goods and services to determine if consumers… Continue Reading

Missouri Preneed Records: Trustee’s Deposit Records

Posted in Compliance, Exams/audits, Fiduciary, Missouri - SB1, Recordkeeping
In our prior post (Missouri Seller Exams: Timely Deposits), we discussed the receipt and deposit records that funeral homes may be required to maintain.  However, to demonstrate that they are complying with the preneed law’s deposit requirements, funeral homes will also be dependent upon the records generated by their funding source to confirm consumer funds… Continue Reading

Missouri Seller Exams: Timely Deposits

Posted in Compliance, Exams/audits, Recordkeeping
Missouri’s preneed funeral law imposes time requirements on funeral homes that accept consumer funds.  For funeral homes using depository accounts to fund preneed contracts, the funeral home must deposit consumer funds with the bank within 10 days.  Funeral homes using insurance to fund preneed contracts must remit the consumers funds to the insurance company within… Continue Reading

Missouri Seller Exams: Trustee Recordkeeping and Disbursements

Posted in Exams/audits, Fiduciary, Missouri - SB1, Recordkeeping
The clock is on for the second round of Missouri preneed audits  financial examinations, and the Missouri Division of Professional Registration wants to avoid the slow start that plagued the process 5 years ago.   Although the State Board has yet to approve the Division’s proposals for seller recordkeeping and the scope of the exams, exam… Continue Reading

Missouri Seller Records: The State Board Proposal

Posted in Compliance, Exams/audits, Recordkeeping
At its March meetings, the State Board again received from the Division staff a rule proposal that would define the minimum records that a preneed seller would have to maintain.  The first recordkeeping proposal was offered last July, but was never discussed.  The recordkeeping proposal was subsequently included on the December agenda, but was only… Continue Reading

Missouri’s Financial Examination Committee: What role?

Posted in Compliance, Exams/audits, Missouri - SB1
When the Missouri State Board of Embalmers and Funeral Directors meet this week, the role of the Board’s Financial Examination Committee will be discussed.  As established, the Financial Examination Committee was intended to expedite the exam process.  The initial Committee consisted of the Board’s public member and a former industry member who had previously acknowledged… Continue Reading

Missouri’s Next Round of Preneed Examinations: Drilling Deeper?

Posted in Compliance, Exams/audits, Missouri - SB1
When the Missouri State Board of Embalmers and Funeral Directors meets this week, their staff will be seeking input regarding the scope of the second round of preneed audits.  Each preneed seller is to be audited at least once every five years, and the first round of audits was ‘concluded’ this year.   Included on the… Continue Reading

Out of Left Field: Missouri’s insurance assignments

Posted in Exams/audits, Insurance Funded, Missouri - SB1
Who can honestly say they saw this one coming?  On July 5, 2012, the Missouri State Board of Embalmers and Funeral Directors filed a complaint with the Missouri Administrative Hearing Commission against a Missouri funeral home for alleged violations of Chapter 436, including several transactions that predate Senate Bill No. 1. So, three years after the… Continue Reading

Missouri’s desk audit: the first look will take the longest

Posted in Exams/audits, Funeral, Missouri - SB1, Preneed
As discussed in prior posts, the Missouri preneed audit process begins with a notice to the preneed seller for the production of documents and data. After a review is made of the documents, data and the annual reports filed with the State Board, an on-site examination is scheduled with the seller. Most Missouri preneed sellers… Continue Reading