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
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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: 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…
The Proceeding against The Missouri Funeral Trust: The Long Build Up
By Bill Stalter on
We start our review of the case against the Missouri Funeral Trust with the procedural issues raised in the State Board’s Complaint and MFT’s Answer. From the Answer, we learn that the preneed financial examination was initiated on January 20, 2011. But, it was almost three years before an examination report was sent by…
Missouri’s Funeral Consumer Board: Another Step Closer
By Bill Stalter on
With the support of the Missouri Funeral Directors and Embalmers Association, The Funeral Consumer Board Bill (HB 596) was voted out of committee last week with a crucial amendment. As reported in our January 19th post, Rep. McGaugh wants a preneed regulator that is more responsive to the consumer. The Representative’s…
Missouri’s Longest Preneed Audit: Continued until October
By Bill Stalter on
After five months of trading Complaints and Answers, the Missouri State Board of Embalmers and Funeral Directors and the Missouri Funeral Trust have been assigned an October hearing date before the Administrative Hearing Commission. The dispute between the State Board and the MFDEA’s master trust program has been waging for years over issues such as…
Round 2 of Missouri’s Preneed Exams: The Document Request
By Bill Stalter on
Posted in Exams/audits, Missouri - SB1
It has been more than a year since the Missouri State Board of Embalmers and Funeral Directors approved the expansion of the scope of financial examinations. Consequently, preneed sellers up for their second preneed audit are receiving notices that request the following reports and documents:
- A current statement from your state or federally chartered financial
…