The Missouri State Board of Embalmers and Funeral Directors and the Board’s staff are engaged in an awkward exercise of establishing audit policies for the state’s preneed industry. The staff, employees of the Division of Professional Registration, must take the lead in making recommendations to the Board. The Board then must approve the recommendations, or
Missouri’s Financial Examination Committee: What role?
When the Missouri State Board of Embalmers and Funeral Directors meet this week, the role of the Board’s Financial Examination Committee will be discussed. As established, the Financial Examination Committee was intended to expedite the exam process. The initial Committee consisted of the Board’s public member and a former industry member who had previously acknowledged
Missouri’s Next Round of Preneed Examinations: Drilling Deeper?
When the Missouri State Board of Embalmers and Funeral Directors meets this week, their staff will be seeking input regarding the scope of the second round of preneed audits. Each preneed seller is to be audited at least once every five years, and the first round of audits was ‘concluded’ this year. Included on
Missouri Preneed Tax Cut: The Contract Fee
Using its emergency rulemaking authority, the Missouri State Board of Embalmers and Funeral Directors reduced the state preneed contract fee from $36 to $25. The change is to go in effect on September 1, 2015, the first day of the next reporting period.
Trustee Investment Liability: The Preneed Purchaser Wild Card
Back in March, the NPS Special Deputy Receiver won a judgement of $355 million against PNC Bank (as successor to Allegiant Bank). In defense of Allegiant Bank, PNC argued that Missouri’s Chapter 436 defined the trustee’s duties as owed solely to the preneed seller. That was the intent of the Missouri Funeral Directors Association when
Missouri Audits: What’s in store for round 2?
The Missouri State Board of Embalmers and Funeral Directors will meet August 4th and 5th to discuss legislation, regulation drafts and changes to the examination process. The State Board examiners are completing the first audit of each preneed seller, and the scope and procedures for the next round of preneed audits will be discussed. Use
The Missouri Agenda: a few clean up provisions
The Missouri State Board of Embalmers and Funeral Directors will meet to July 21st to discuss “a short slate” of legislation and regulation proposals. While many of the proposals have been previously discussed, some, such as the preneed shortage funding requirement, are new. We also note regulation proposals regarding when forms and reports
Criminal Intent: Use of the Wrong Deposit Book
An Oklahoma funeral director faces serious prison time over the deposit of preneed funds to his business operating account. The Oklahoma Department of Insurance decided to go to a local prosecutor when a Department audit found the funeral director had routinely failed to deposit consumer funds to the preneed trust required by state law. The
NPS’ Legacy of Damages: No One Knows How Deep the Waters Were
When NPS first collapsed, the estimate of the company’s liabilities to funeral homes was reported to have been as much as a billion dollars. When the SDR finally brought the case to trial, the damages awarded by the jury were less than half of the original estimate. While this author believes the actual damages are
Missouri and the Investment Advisor: A Chinese Wall
Among the rule proposals suggested by the Division of Professional Registration to the State Board of Embalmers and Funeral Directors was the following definition of “External Investment Advisor”:
any licensed, qualified investment advisor approved and authorized by the trustee of the preneed trust and who holds no personal interest in any assets of the preneed