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 Corners… Continue Reading
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Missouri’s Exam Handbook: Reviewing All Contracts for What Purposes?
Posted in Exams/audits, Missouri - SB1, UncategorizedThe 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 period… Continue Reading
Missouri Preneed Exams: Examiner Desk Top Reviews
Posted in Exams/audits, Missouri - SB1The 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 the… Continue Reading
Missouri’s Next Preneed Exam Manual: Start Following the Money
Posted in Exams/audits, Missouri - SB1, Recordkeeping, UncategorizedThe 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 most… Continue Reading
The Division: Regaining that 2008 Mojo
Posted in Missouri - SB1During the summer following NPS’ collapse, the Missouri Division of Professional Registration provided crucial leadership to building the consensus required for Senate Bill No. 1. Rushed efforts to re-write the Missouri preneed law had failed, and the Legislature then turned to the Division. Represented by Connie Clarkson, Becky Dunn and Kim Grinston, the Division prepared… Continue Reading
The Missouri State Board: But Will the Division Change its Ways?
Posted in Exams/audits, Missouri - SB1The 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 officially promulgated,… Continue Reading
Missouri Preneed Exam Procedures: Industry Expertise
Posted in Exams/audits, Missouri - SB1, UncategorizedOur 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… Continue Reading
Dialing It Back to Zero: Missouri Reboots it’s Exam Process
Posted in Exams/audits, Missouri - SB1With 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… Continue Reading
Missouri’s Adequate Preneed Records: Performance and Cancellation Records
Posted in Exams/audits, Missouri - SB1, RecordkeepingWhen the State Board approved a new “adequate seller records” rule on April 25th, there wasn’t much discussion of the documents or reports to be maintained for performed and canceled preneed contracts. In a sense, the Board may not need to expand beyond the FTC’s statement of goods and services requirement. If a funeral home… Continue Reading
Missouri’s Adequate Preneed Records: Receipt and Transmittal Records
Posted in Exams/audits, Missouri - SB1The Missouri funeral industry has haggled with the State Board for two years over preneed record requirements. But on April 25th, the State Board scrapped the staff’s adequate record proposal, and instead, adopted a brief definition of ‘seller records’. The State Board’s approach will afford funeral homes more flexibility in documenting the receipt of consumer… Continue Reading
Missouri Preneed Fees: Making Guaranteed Contracts Affordable to the Funeral Home
Posted in Price Protection, UncategorizedIt only took 15 months, but the Missouri State Board finally approved a rule to clarify what fees a preneed seller may charge when offering a guaranteed price contract to consumers. Low investment returns from insurance and trusts forced many funeral homes to stop offering guaranteed price contracts to consumers. Funeral homes’ cost increases were… Continue Reading
Missouri State Funeral Board: Unwinding Two Staff Overreaches
Posted in Missouri - SB1, UncategorizedAt its April 25th meeting, the Missouri State Board unwound two controversial staff proposals: mandatory consumer disclosures for preneed contracts and the formation of an insurance funded contract. With 20 CSR 2120-3.205 , the Board staff sought to require Missouri preneed sellers to provide consumers with a two page list of disclosures. Those disclosures proved… Continue Reading
Missouri’s Funeral Board: Taking Back the Reins
Posted in Exams/audits, Missouri - SB1The April 25th meeting of the Missouri State Board of Embalmers and Funeral Directors marked an important transition where industry members assumed control over the protection of consumers’ preneed funds. After the first round of financial examinations, the Board’s procedures for the second round were defined by the Board’s staff, and never submitted to the… Continue Reading
Missouri Preneed Examinations: The Doctrine of Semi-Absurd Statutory Construction
Posted in Compliance, Exams/audits, Missouri - SB1Missouri funeral homes are frustrated with the State Board of Embalmers and Funeral Directors. The second round of preneed examinations has begun, and the Board’s staff is citing sellers for “new” contract form violations on “old” contracts. Examiners are reviewing all outstanding contracts, including those covered in the seller’s first examination, and now citing the… Continue Reading
Missouri Policy Changes: Return to Start, Do Not Pass Go or Collect $200
Posted in Missouri - SB1Over the past couple of years, the Missouri State Board of Embalmers and Funeral Directors implemented a number of policy changes that affected the funeral industry. New requirements were imposed on licensing and reporting, and complaints were filed against licensees that failed to comply with those new requirements. It is not uncommon for a state… Continue Reading
Missouri State Board of Embalmers and Funeral Directors: Ten Years after NPS
Posted in Compliance, Exams/audits, Missouri - SB1Ten years after the collapse of NPS, the Missouri State Board of Embalmers and Funeral Directors has a confidence problem with licensees and legislators. Licensees see a regulator that is obsessed with DBAs, renewal reports, and exams that focus on contract provisions. Legislators see a regulator that will not fulfill the SB1 mandate to protect… Continue Reading
The Missouri Board Chairman’s Rally Cry: Follow Me, Boys!
Posted in Exams/audits, Missouri - SB1, Recordkeeping, Reporting, UncategorizedPursuant to a notice that may, or may not, satisfy state law, the Missouri State Board of Embalmers and Funeral Directors met in closed session this morning. At the State Board’s December meeting, Division counsel advised that 24 hours’ notice to the public was required to amend the Board’s agenda. Notice of this 9:00 am… Continue Reading
Missouri Seller Records: The Starting Point for an Audit Trail
Posted in Exams/audits, Recordkeeping, UncategorizedThe last time the Missouri State Board of Embalmers and Funeral Directors took up the issue of preneed seller record keeping requirements, the staff proposal emphasized a contract ledger approach. The proposal sought to require a contract record that reflected the amount and date of each payment received and the corresponding dates and amounts deposited… Continue Reading
Missouri’s Preneed Examination Process: A New Focus
Posted in Exams/audits, Missouri - SB1For the first round of Missouri preneed examinations, the State Board of Embalmers and Funeral Directors had no choice but to jump into preneed sellers’ records and files. Hundreds of funeral home had been selling preneed for decades without supervision or record keeping requirements. So, the first exam objective was to look at everything and… Continue Reading
Missouri’s Funeral Board: Returning to the Scene of the Crime
Posted in Exams/audits, RecordkeepingTwo years ago, the Missouri State Board of Embalmers and Funeral Directors met in Independence to discuss their staff’s recommendations for seller record keeping requirements and the scope of preneed examinations. As the minutes somewhat reflect, the staff proposals were met with strong public opposition. (This blog documented those issues in prior posts that are listed… Continue Reading
Missouri Preneed Examinations: An Important Pivot
Posted in Exams/audits, Missouri - SB1, UncategorizedIn their last meeting, the members of the Missouri State Board of Embalmers and Funeral Directors took a small, but important pivot in the preneed examination process. The State Board approved a recommendation made by the Financial Examination Committee that the Committee review each examination report and prepare the letter that accompanies the report to… Continue Reading
Missouri Seller Records: 2017 Reboot?
Posted in Administration, Compliance, Master Trusts, Missouri - SB1, RecordkeepingThis time last year, the hot topic before the Missouri State Board of Embalmers and Funeral Directors was the staff’s proposed regulation to define what constitutes adequate records of a preneed seller. The proposal was revised more than once during 2016, but it was eventually tabled by the Board before any consensus could be… Continue Reading
Missouri’s State Board: the 2017 Sabbatical is Over
Posted in Missouri - SB1After a 8 month sabbatical, the Missouri State Board of Embalmers and Funeral Directors will be back at work soon. Shortly after taking office in January, Governor Eric Greitens withdrew two interim appointments to the State Board, leaving it without a quorum to take formal actions. For the last eight months, the State Board has… Continue Reading
Missouri Rule Rollback: How to Start the Process?
Posted in Compliance, Missouri - SB1, UncategorizedDespite 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 than a year… Continue Reading