For years, Illinois law has prohibited funeral homes from being named as beneficiaries to consumers’ life insurance policies.  In response to frauds committed by National Prearranged Services (NPS), many states amended their preneed laws to prohibit life insurance ownership by a funeral home.  NPS had structured its preneed program as owner of insurance policies sold

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

It has been almost 2 years to the date when a $391 million dollar judgment was entered against PNC Bank, as the successor to Allegiant Bank.   Allegiant Bank was one of the last trustees to administer National Prearranged Services’ preneed trusts in Missouri.  PNC Bank appealed that judgment, and a decision is expected any day

In an unusual move for a death care regulator, the Federal Trade Commission weighed in on the preneed turf war that has erupted between Pennsylvania funeral directors and StoneMor Partners.   At the request of the chairman for a Pennsylvania legislative committee, the FTC responded with a detailed letter warning against various bill proposals aimed at

During its state convention, the executive director for the Missouri Funeral Director and Embalmers Association stated that their master trust program would have a $3 million dollar surplus if all preneed contract beneficiaries were to die that day.  If the Missouri program were being administered pursuant to common trust fund rules, there should not be

Prior to Missouri re-writing its preneed law in 2009, preneed sellers could draw off realized income so long as the withdrawal did not reduce the trust’s fair market value below trust deposits.   Seeking income, many Missouri sellers directed their trustees to invest in bonds.  As interest rates declined during the early part of the prior

At its June meeting, the Missouri State Board of Embalmers and Funeral Directors gave instructions to their staff to draft legislation that would provide the Board powers to force preneed sellers to contribute funds to their trusts to cover ‘shortages’.   The instruction was not without some controversy as one Board member questioned why he was

The reversal of the Heffner decision generated a wide range of comments, but those made by Wilson Beebe resonated most with our initial review of the decision.  The lower court decision was based on a challenge that the Pennsylvania Funeral Law was unconstitutional on its face.   A law can also be challenged as unconstitutional because

Because, that is our Policy.

The death care industry is hearing that more frequently these days.   Last July, an Illinois client was advised by the Department of Healthcare and Family Services that his preneed contract would have to be revised to comply with the Department’s new policy about excess preneed funds.  A few clients in

Legislation was introduced this week in the Kansas Legislature, and one of the bill’s changes seeks to clarify how cemetery care fund requirements can be computed. We have found this a source of confusion for cemeteries and regulators in many states. Depending upon the type of interment right purchased, the care fund requirement is often