Our next criticism of Missouri’s pending Exam Handbook is its violation of the Four Corners Rule, which requires a document to stand on its own when being interpreted and applied. Common law precludes parties from going to outside sources when applying the document to different situations. While the Handbook gives lip service to the Four
Exams/audits
Missouri’s Exam Handbook: Reviewing All Contracts for What Purposes?
By Bill Stalter on
The newest edition of the Missouri Preneed Exam Handbook has some significant problems. The one we will discuss today is ambiguous instructions regarding the review of preneed contracts. Paragraph 13 of the Handbook’s scope of financial examination states:
13) Staff shall look at 100% of all active preneed contracts that have been sold since the…
Missouri’s Preneed Exam: Prioritizing the Exceptions
By Bill Stalter on
Posted in Exams/audits, Missouri - SB1
“Nitpicking” was one of the terms frequently used by Missouri funeral directors when referencing their preneed exam exceptions report. (Other descriptions are not appropriate for print.) The initial exam guideline provided no guidance to examiners for prioritizing problems found in preneed contracts and records. It was common to see exception reports with dozens, even hundreds,…
Missouri Preneed Exams: Examiner Desk Top Reviews
By Bill Stalter on
Posted in Exams/audits, Missouri - SB1
The Missouri State Board’s proposed exam handbook would have examiners perform more of their review before an onsite visit is scheduled at the funeral home. By performing a desk top review, the examiner would be better prepared when visiting the funeral home. This should expedite the examination process. There would be four stages to…
Missouri Preneed Exam Procedures: New Receipt and Transmission Records
By Bill Stalter on
Missouri’s pending preneed exam handbook will establish a new record keeping requirement for the state’s preneed sellers: monthly records of consumer payment receipts and the transmission of those funds to the preneed funding agent. Seller record keeping proposals are not new to the Board. (Missouri Seller Records: The State Board Proposal) The Board’s…
Missouri’s Preneed Exam Handbook: How to Spot the Cheaters
By Bill Stalter on
Posted in Exams/audits, Missouri - SB1
The Missouri State Board’s proposed exam handbook places a new emphasis on tracking consumer payments to funeral homes. There are two elements to the Board’s strategy: confirming the consumer’s funds make it to the appropriate funding agent, and that those funds are remitted to that funding agent within the time periods required by Chapter 436. …
Missouri’s Next Preneed Exam Manual: Start Following the Money
By Bill Stalter on
The Missouri State Board of Embalmers and Funeral Directors introduced a new preneed examination handbook at its October meeting. (Click the following hyperlink to access the preneed handbook.) The proposed handbook would change the emphasis of the preneed exams from contract and recordkeeping compliance to tracking consumer funds paid to the funeral home.
For…
The Missouri State Board: But Will the Division Change its Ways?
By Bill Stalter on
Posted in Exams/audits, Missouri - SB1
The rift between the Missouri State Board of Embalmers and Funeral Directors and their Executive Director culminated in her resignation effective June 30th. Over the course of the past several years, the State Board drew the ire of the industry in a number of ways. The staff implemented regulation proposals before they were…
Missouri Preneed Exam Procedures: Industry Expertise
By Bill Stalter on
Our first recommendation to the Missouri State Board of Embalmers and Funeral Directors is that they assume, and maintain, control over the preneed examination procedures. The exam procedures implemented two years ago were never submitted to the Board for review and approval. Accordingly, the examination procedures handbook should remind the staff that any change made…
Dialing It Back to Zero: Missouri Reboots it’s Exam Process
By Bill Stalter on
Posted in Exams/audits, Missouri - SB1
With an action that caught some by surprise, the Missouri State Board of Embalmers and Funeral Directors voted to suspend future preneed examinations and accept recommendations on a new process. We have made several posts on the faults of the Missouri examination process, and now commend the Board on taking a bold action. The Missouri…