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: missouri

Missouri Preneed Seller Records: Communications

Posted in Compliance, Exams/audits, Recordkeeping
Missouri’s preneed seller records proposal would require preneed sellers to retain all communications that relate to their preneed contracts: Any written (including electronic) communications between the seller and any preneed agent, provider, trustee, investment advisor, insurance company, purchaser and/or beneficiary of the preneed contract and any other person related to preneed contracts and the funding… Continue Reading

Missouri Preneed Seller Records: Existing Insurance Policies

Posted in Compliance, Exams/audits, Recordkeeping
We anticipate that the following section of the Missouri record keeping proposal is directed at the situation where consumers assign an existing insurance policy to the funeral home: All information obtained or possessed by the seller related to any insurance policy used to fund any preneed contract that may include, but not be limited to,… Continue Reading

Missouri Seller Preneed Records: Cancellations

Posted in Compliance, Exams/audits, Recordkeeping
With regard to preneed contracts that are canceled, Missouri preneed sellers are being requested to retain the following documents:  (1)       All records providing any sort of notice to the seller of the cancellation of a preneed contract; and (2)        All records showing the date, name of who is paid, the amount paid out and a… Continue Reading

Missouri Preneed Records: Keep Your Bank Records and Insurance Records

Posted in Compliance, Exams/audits, Recordkeeping
The next section of the Missouri preneed seller records rule would require funeral homes to retain copies of the periodic statements provided by banks, trustees and insurance companies: Copies of account statements for joint accounts, trust statements for trust accounts, and any statements received from insurance companies listing the insurance policies in effect and/or the… Continue Reading

Missouri Preneed Seller Records: Insurance Payments

Posted in Compliance, Exams/audits, Recordkeeping
The next section of Missouri’s preneed record rule is confusing.  A prior provision of the rule (¶D(1)) would require a seller to maintain records reflecting the receipt of funds from an insurance company, and documents showing the seller’s performance of the contract.  However, for insurance funded contracts, the rule would also seek the following additional… Continue Reading

Missouri Seller Records: The Hidden Drawer

Posted in Compliance, Exams/audits, Recordkeeping
The next section of Missouri’s seller records rule proposal seeks the following documents: D.  For all fulfilled preneed contracts: (1)   Records showing seller’s performance for fulfilled preneed contracts including: (a)  Written certificate(s) of performance for each preneed contract fulfilled; (b)  Requests to the financial institution and/or insurance company for payment; (c) Evidence of the date… Continue Reading

Missouri Preneed Seller Records: Insurance Premium Payments

Posted in Compliance, Exams/audits, Missouri - SB1, Recordkeeping
The next section of Missouri record keeping proposal addresses funeral homes that handle insurance premium payments.  For funeral homes that rely upon insurance funding for their preneed program, the initial payment is typically handled by the funeral director or preneed agent, and then subsequent premium payments are made directly to the insurance company.  However, some… Continue Reading

Missouri Seller Records: Timely Deposits to Trust

Posted in Compliance, Missouri - SB1, Recordkeeping
The next section of the proposed record keeping rule for Missouri preneed sellers addresses the timely deposit of consumer funds to preneed trusts.  Missouri’s prior preneed law did not specify when consumer deposits were required to be deposited to trust, and National Prearranged Services exploited that omission.  NPS claimed that consumer funds need not be… 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 Seller Records: the Third Time did not prove a Charm

Posted in Compliance, Exams/audits, Missouri - SB1, Recordkeeping
It’s been fifteen months and counting, but the Missouri State Board of Embalmers and Directors and their Division staff are still at odds over a rule for defining minimum record keeping requirements for preneed sellers.  The Division staff first floated an “Adequate Records” rule in July 2015, but the draft was not formally submitted to… Continue Reading

Avoid the Long Spring Lines: File your Missouri Preneed Renewals Early

Posted in Compliance, Missouri - SB1, Recordkeeping
Missouri’s preneed seller and provider license renewals expire October 31st of each year, and many funeral directors approach this deadline like they would their tax return: if it is in the mail by Halloween I’m good.  But, dozens of Missouri funeral directors found otherwise this past year when they were summoned to appear before the… Continue Reading

Facing 14 Years’ of Hard Time: One Missouri Funeral Director’s Failure to Deposit Preneed Funds

Posted in Compliance, Exams/audits, Recordkeeping
The Missouri Iron County Mountain Echo ran the following story on August 15th: A former Ironton Funeral Home Director has pleaded guilty to two counts of stealing in Iron County Circuit Court.  The charges stem from the sale of pre-need funeral plans.  George Treaster of Ironton entered a plea of guilty to two counts of… 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 Records: KISS

Posted in Compliance, Recordkeeping
When the Missouri State Board of Embalmers and Funeral Directors met June 30th to discuss a proposed rule defining new record keeping requirements for preneed sellers, one Board member spoke a sentiment that many funeral directors share: keep it simple, stupid.   The Board member suggested that consumer receipt records could be as simple as copying… Continue Reading

Missouri’s June 30th Rules Committee Meeting: Time to Take the Lead

Posted in Compliance, Exams/audits, Recordkeeping
In our January 3rd Post, we described the process (or lack of process) between the State Board of Embalmers and Funeral Directors and the Division staff for establishing the examination procedures that would be applied to preneed sellers for the next five years.  The industry railed at the Staff’s recommendations for the scope of financial… 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 Preneed Seller Records: Receipt Journal

Posted in Compliance, Recordkeeping
The first record described in the proposed Missouri recordkeeping regulation could actually require preneed sellers to maintain three, maybe four, sets of journals: (1) receipt and disbursement journals containing a record of deposits to and withdrawals from both preneed trusts and preneed joint accounts, specifically identifying the date, source, and description of each item deposited… Continue Reading

A Missouri Mid-Semester Cram: the March agenda

Posted in Compliance, Recordkeeping
The staff for the Missouri State Board of Embalmers and Funeral Directors posted the 779 page agenda for next week’s meetings.  Doesn’t the state have a policy against the waste of natural resources?  Granted the agenda includes minutes and regulation proposals from several prior meetings, but a Cliff’s Notes would be helpful to know what’s… Continue Reading