This past Friday morning, news outlets across the country picked up an Associated Press story regarding Governor Parson’s October ouster of Missouri’s Gottcha Board. (For those not familiar with the Missouri State Board of Embalmers and Funeral Directors, the tag “Gottcha Board” was first given to the Board in 2020 by the Missouri Funeral
Missouri - SB1
Derailing Missouri Preneed Reform: Where will the Buck Stop?
By Bill Stalter on
Posted in Missouri - SB1, NPS/Lincoln
Despite what some may say, the State Board shake up and the termination of its executive director came as a surprise. But the most surprising move by the Division was the termination of Randall Jennings, the preneed examination supervisor. The examination supervisor had no role whatsoever in the funeral home inspection process. Baffled by that…
Missouri’s Division of Professional Registration: Out of the Frying Pan into the Fire
By Bill Stalter on
The State of Missouri seems hell-bent on creating work for Jefferson City attorneys. As we reported earlier this summer (You were Warned!), the Division of Professional Registration blundered in its first move to control how the State Board of Embalmers and Funeral Directors conducts inspections of funeral homes. Since then, the Division has…
Missouri Seller Renewal Reports: When a Contract is not a Contract
By Bill Stalter on
Prior to October 31st each year, Missouri preneed sellers must file a renewal/annual report that sets out each preneed contract issued or sold during the reporting period (September 1st through August 31st). We recently had funeral home clients express confusion over when an arrangement with a family constitutes a preneed contract. …
NPS’ Trial Court: Trustees and Individual Deposit Records
By Bill Stalter on
“Allegiant [Bank] violated the industry standard of care by not maintaining consumer-level deposit records, because, as here, where there are multiple beneficiaries of a trust, the trustee must keep records of the individual deposits made for each consumer.”
This finding by the trial court in the NPS civil trial had to come as a shock…
Missouri’s Phase 2.5 of Preneed Exams: Section 436.425 and Insurance Funded Contracts
By Bill Stalter on
Posted in Exams/audits, Missouri - SB1
In our last post we discussed the need for the Missouri State Board to provide guidance to their financial examiners regarding Section 436.425 and insurance funded contract forms. In this post we will discuss Section 436.425 and trust or joint account funded contracts.
Subparagraph 9 has created confusion for examiners and sellers. That section states…
Missouri’s Phase 2.5 of Preneed Exams: Section 436.425 and Insurance Funded Contracts
By Bill Stalter on
At its April meeting, the Missouri State Board of Embalmers and Funeral Directors discussed the formation of a “Phase 3 Committee” that would provide input for the revision of the Board financial examination handbook. The Board staff is about half way through the second round of preneed examinations (“Phase 2”), and the Board wants to…
Missouri Preneed Examination Changes: the Small Seller Proposal
By Bill Stalter on
Posted in Exams/audits, Missouri - SB1
The Missouri State Board of Embalmer and Funeral Directors met this past December to discuss changes to the Preneed Examination Handbook, and former Board Chairman Don Lakin made a proposal that has merit.
The State Board has licensed approximately 315 preneed sellers. The current preneed examination procedures contemplate an onsite visit to each seller. Many…
Missouri’s Exam Handbook: The Four Corners of the Manual
By Bill Stalter on
Posted in Exams/audits, Missouri - SB1
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…
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…