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 institution/s authorized to exercise trust powers in Missouri of any preneed trust account/s that you have identifying the payments, earnings, and distributions for each active preneed contract
  • A current statement from any/all applicable insurance companies with which you have insurance-funded preneed contracts for each active preneed contract
  • A current listing of any other insurance assignments which require insurance funded preneed contracts that are not included in the above bullet
  • A current statement from your financial institution/s of preneed joint account/s for each active preneed contract
  • A current statement from any other sellers reflecting contracts listing you as provider
  • For any joint accounts, an attestation from each bank that the accounts are under joint control of the seller and consumer
  • A copy of a ledger or computerized report showing all outstanding preneed contracts, including consumer addresses, if available
  • Total payments and applicable payment dates on preneed contracts, if available (not necessary for payments on insurance funded preneed contracts)
  • Copies of agreement(s) with providers, if any
  • A copy of the trust agreement with the financial institution for any preneed trusts
  • A blank preneed contract currently used by you as a seller
  • Written policy regarding retention of records, if available
  • Written policy regarding cancelled and transferred contracts, if available
  • Explanation of sequential numbering system for preneed contracts
  • A report showing all contracts that have been canceled transferred or fulfilled since your previous exam.

We will address some of the requests in greater detail in future posts.