Preneed: A Pandora's Box of Problems
The next section of the Missouri preneed records rule provides the funeral home latitude to maintain records in either a hard paper copy or an electronic format, but so long as the records are provided to the State Board in a timely manner:
All records required to be maintained by a seller may be maintained…
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…
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…
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…
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…
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…
Missouri’s proposed preneed records rule includes a provision that would require funeral homes to document the payment of excess funds:
(3) Records showing payments made to the state of Missouri or to any other person including the amounts paid, the dates paid and the name of the person paid; and…
The next section of Missouri’s seller records rule proposal seeks the following documents:
For all fulfilled preneed contracts:
(2) Documentation showing payment to the provider by the seller including the name of the person or entity to whom payments were made, the date and amount of each payment, and a description of payment to the…
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…
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…