Despite lacking sufficient members to take official actions, the Missouri State Board of Embalmers and Funeral Directors met last week to discuss Executive Order 17-03. As we reported back in January (Missouri Rule Rollback), the Order represents a significant undertaking by the State Board. Seven months later, the State Board has less
Compliance
The MFT Complaint: A Sham Seller
By Bill Stalter on
In paragraphs 53 through 71 of the MFT Complaint, the State Board sets out certain duties that only a licensed Missouri preneed seller may perform. The Complaint asserts that these seller duties are either being performed by the funeral homes that contract to be ‘providers’ with the MFT, or by Eagle Bank as trustee for…
The MFT Complaint: Rollovers and Sellers
By Bill Stalter on
In our prior post, we looked at Paragraphs 39 through 52 of the Complaint filed against the Missouri Funeral Trust, and the implications of Missouri’s Common Trust Fund law. In this post we will look at paragraphs 79 through 95 of the State Board Complaint, and what exposures rollover funeral homes could have.
The Complaint…
The MFT Complaint: Rollovers and Common Trust Funds
By Bill Stalter on
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…
The MFT Complaint: Assumption of Duties of a Prior Seller
By Bill Stalter on
In Paragraphs 35 through 38 of the Complaint filed against the Missouri Funeral Trust, the State Board of Embalmers and Funeral Directors seek discipline against MFT for its inability to produce copies of contracts sold by a funeral home that transferred its trust to MFT. The original seller funeral home apparently amended several of its…
Missouri HB 596: Messages Received?
By Bill Stalter on
The legislation that would have converted the Missouri State Board of Embalmers and Funeral Directors from an industry board to a consumer board did not get to a vote on the floor, but got further than most expected. Seeking to make the State Board more responsive to preneed consumers, Rep. McGaugh’s efforts got an unexpected…
MFT Complaint: Canceled and Performed Contract Accounts
By Bill Stalter on
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…
MFT Complaint: Insurance Contract Records
By Bill Stalter on
Paragraph 26c of the Complaint filed by the Missouri State Board of Embalmers and Funeral Directors alleges that the Missouri Funeral Trust fails to maintain “records regarding the insurance policies for insurance funded preneed contracts….” We suspect this claim may be directed at a practice where the MFT trustee has accommodated funeral homes that have…
The MFT Complaint: Principal in Excess of the Preneed Contract
By Bill Stalter on
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…
The MFT Complaint: Records and the Administration of Consumer Funds
By Bill Stalter on
Posted in Exams/audits, Recordkeeping
The next issue in our review of the MFT Complaint concerns the State Board allegation that the MFT fails to maintain adequate records to document how much consumers have paid and that the proper amounts were deposited to trust. In subsequent sections of the Complaint, the State Board asserts that the MFT in some instances…