Death Care Compliance Law

Death Care Compliance Law

Preneed: A Pandora's Box of Problems

William Stalter is the founder of Stalter Legal Services and the Preneed Resource Company. Bill focuses his law practice on preneed and death care compliance, serving banks, funeral homes, crematories, and cemeteries. He has written multiple published articles

Tag Archives: exams

Missouri Preneed Seller Records: Insurance Payments

Posted in Compliance, Exams/audits, Recordkeeping
The next section of Missouri’s preneed record rule is confusing.  A prior provision of the rule (¶D(1)) would require a seller to maintain records reflecting the receipt of funds from an insurance company, and documents showing the seller’s performance of the contract.  However, for insurance funded contracts, the rule would also seek the following additional… Continue Reading

Trust Funded Preneed and Insurance Assignments

Posted in Compliance, Exams/audits, Guaranteed, Insurance Funded, Non-guaranteed, Preneed, Recordkeeping, Trust Funded
Funeral homes frequently allow the assignment of insurance as partial payment towards a trust funded preneed contract, but the manner in which the assignment is made can cause problems for them.  Preneed trustees will not accept an insurance policy for a host of reasons.  Insurance proceeds paid to a trust are not tax free and… Continue Reading

Missouri’s Examination: an idea of what to expect

Posted in Exams/audits, Missouri - SB1, Preneed
The new era of preneed exams and audits got off to a slow start in Missouri, but now there are indications the process is picking up speed.   The first notices of preneed financial examinations went out to sellers last January, and some are now going through on-site examinations.  A second wave of examination notices has gone out, and the State Board has begun preparations for… Continue Reading

Delegating Preneed Prosecution

Posted in Exams/audits, Preneed, Reporting
Maybe it’s a response to shrinking state budgets, or the fact that the tracking of preneed funds is becoming more effective, but state and local prosecutors are assuming an expanding role in the enforcement of preneed laws. While a recent report released by the Missouri State Board of Embalmers and Funeral Directors reflects a drop… Continue Reading

Groundhog Day in Missouri: Preneed Exams before Spring

Posted in Exams/audits, Funeral, Missouri - SB1, Preneed, Reporting
The start of Missouri’s new era of preneed oversight began when document requests were mailed to sellers on January 3rd. Sellers were requested to provide the following documents by January 28th: · A current statement from your state or federally chartered financial institution’s authorized to exercise trust powers in Missouri of any preneed trust accounts… Continue Reading

Preneed Contract Forms: Worth The Paper They’re Written On?

Posted in Compliance, Exams/audits, Funeral, Insurance Funded, Preneed, Recordkeeping, Trust Funded
With the exception of a few states, each form of preneed funding has its own statutory requirements. Consequently, different contract forms are required for each method of preneed funding. So, what does this mean for the consumer worried about the safety of funds paid to the funeral home or cemetery. Among the pecking order of… Continue Reading

Early Audit Warning: Fees and Assessments

Posted in Compliance, Exams/audits, Funeral, Preneed
It seems paradoxical to see preneed regulators ramping up audit programs while state budgets are being slashed to the bone. Yet, several I-70 corridor states will soon implement new preneed audit programs. Missouri’s preneed funeral audits will be funded out of a combination of license fees and preneed contract fees. Missouri’s new cemetery law did… Continue Reading

The Preneed Tax

Posted in Compliance, Preneed, Reform
Several states have passed laws in the past few years mandating greater preneed oversight. But with state budgets in decline after the 2008 market crash, regulators are hard pressed to find a way to pay for consumer protection. Colorado’s new law simply states that the contract seller shall bear the cost of its examination. In… Continue Reading

First Things First: is the money there?

Posted in Missouri - SB1
Implementing new regulatory requirements is a difficult and thankless job. Businesses hate change when it comes to government interference, and (most) regulators understand this. Accordingly, regulators typically prefer to implement incremental changes. In contrast to other industries, regulatory changes have been less frequent within the death care industry because legislators and regulators don’t understand the… Continue Reading