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: missouri

Missouri Seller Records: The Starting Point for an Audit Trail

Posted in Exams/audits, Recordkeeping, Uncategorized
The 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 - SB1
For 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, Recordkeeping
Two 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, Uncategorized
In 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

The New Owner of NPS: Liberty Banker Life

Posted in NPS/Lincoln
The Special Deputy Receiver over National Prearranged Services recently filed an application to assign a significant portion of the NPS preneed contracts to Liberty Bankers Life Insurance, and a subsidiary, Capitol Life Insurance Company.  If approved by the court, the NPS contracts will transfer on November 1st.  Preneed contracts sold in Missouri and Alabama will… Continue Reading

Missouri Seller Records: 2017 Reboot?

Posted in Administration, Compliance, Master Trusts, Missouri - SB1, Recordkeeping
This 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 - SB1
After 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 Preneed Annual Reports: Include Those Pre88 and Post88 Trusts

Posted in Exams/audits, Missouri - SB1
The Missouri Preneed Annual Report for 2017 is a little different from prior years.  Schedule H (trust funded contracts) now seeks information about Pre88 trusts and Post88 trusts.  Previously, Schedule H only referenced trusts that administered contracts sold subsequent to August 28, 2009.  This had been a source of confusion for Missouri funeral homes.  Accordingly, many… Continue Reading

Missouri Rule Rollback: How to Start the Process?

Posted in Compliance, Missouri - SB1, Uncategorized
Despite 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

The $64 Million Dollar Question: Is the Money there?

Posted in Master Trusts, Missouri - SB1
While the Missouri State Board of Embalmers and Funeral Directors’ Complaint against the Missouri Funeral Trust alleges the program has failed to maintain adequate records, documents and oversight, funeral directors want to know whether the trust is adequately funded.   Although the State Board raised issues with some contracts reported with zero deposit balances, the Complaint does… Continue Reading

Missouri County Cemeteries: Legislation to Allow Trust Diversification

Posted in Care Funds, Cemeteries
The Missouri legislature has passed a bill to authorize county commissioners to diversify their cemetery trusts.  Prior to the passage of House Bill No. 51 Missouri’s counties were restricted in how they could invest cemetery care funds.  Essentially, a Missouri county could invest care funds only in government bonds.  But, since the mortgage bond crisis of… Continue Reading

The MFT Complaint: Rollovers and Common Trust Funds

Posted in Administration, Investments, Recordkeeping, Reporting
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… Continue Reading

MFT Complaint: Insurance Contract Records

Posted in Compliance, Exams/audits, Missouri - SB1, Recordkeeping
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… Continue Reading

The Proceeding against The Missouri Funeral Trust: The Long Build Up

Posted in Exams/audits, Missouri - SB1, Recordkeeping, Uncategorized
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 the… Continue Reading

Missouri’s Funeral Consumer Board: Another Step Closer

Posted in Exams/audits, Missouri - SB1, Uncategorized
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 constituents lost hundreds of… Continue Reading

Missouri’s Longest Preneed Audit: Continued until October

Posted in Exams/audits, Master Trusts, Missouri - SB1, Recordkeeping, Uncategorized
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… Continue Reading

Round 2 of Missouri’s Preneed Exams: The Document Request

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… Continue Reading