In an earlier post we reported how the acting director for the Division of Professional Registration advised the Governor that State Board changes were needed to be made “to increase efficiency and fiscal responsibility.” Improvements were needed, “especially with inspections and financial examinations”, and that there could be potential cost savings of $200,000. In a
Preneed
The Missouri Gottcha Board: A Speed Bump to Fiscal Responsibility
This past August we received an email from the Gottcha Board asking about availability to attend a closed meeting call. Anticipating a client was in trouble, we responded that we would accommodate the Board’s request. However, the Board’s purpose for the call was to make an inquiry about representation to resolve the dispute with the…
NPS’ Anticlimactic Conclusion: the Eighth Circuit Decision
On August 30, 2021, the legal saga of National Prearranged Services came to a rather anticlimactic conclusion. In a relatively short decision, the Eighth Circuit Court of Appeals affirmed Judge Richard Webber’s July 2019 judgment that awarded $102,135,393.07 damages against PNC Bank, a successor to the NPS preneed trusts. The final damages award is a…
Illinois Spend Down Assignments: Torpedoed?
For years, Illinois law has prohibited funeral homes from being named as beneficiaries to consumers’ life insurance policies. In response to frauds committed by National Prearranged Services (NPS), many states amended their preneed laws to prohibit life insurance ownership by a funeral home. NPS had structured its preneed program as owner of insurance policies sold…
Cemetery Preneed Pivot: Do’s and Don’ts for the Prearrangement Contract
In our next post on cemetery preneed, we want to revisit a post from June 2012 (Cemetery Preneed Challenges: bucket accounting). As discussed in that post, the cemetery prearrangement differs from its funeral counterpart because the cemetery can deliver property and merchandise prior to the purchaser’s death. When establishing a preneed program, a…
Cemetery Preneed Pivot: Creating Cremains Options for Lot Owners
While preserving traditional burials should be a cemetery’s top preneed priority, a priority should also be placed on the surviving lot owner that is opting for cremation. The Wirthlin studies that we’ve been referencing in prior posts suggest that most grave spaces sold by cemeteries during the past 20 years will never be used. One…
Cemetery Preneed Pivot Priority: Lot Owners with a Funeral Preneed Contract
Almost thirty years ago, associations representing funeral homes, casket suppliers, vault makers, monument builders and life insurers joined together to form the Funeral and Memorialization Information Council (FAMIC). These industries were concerned about the future impact of cremation on the traditional funeral and burial. FAMIC used Wirthlin Worldwide to conduct research studies every…
Cemetery Revenues: It’s Time to Pivot
For revenues, most cemeteries are dependent upon grave sales, opening/closing services, and care fund distributions. These revenue sources have been on the decline for a decade. As cremation trends up, fewer families are purchasing burial lots. Those families that already own burial lots frequently don’t use them. COVID induced financial difficulties will only accelerate the…
Missouri Seller Renewal Reports: When a Contract is not a Contract
Prior to October 31st each year, Missouri preneed sellers must file a renewal/annual report that sets out each preneed contract issued or sold during the reporting period (September 1st through August 31st). We recently had funeral home clients express confusion over when an arrangement with a family constitutes a preneed contract. …
COVID and Flexible Interpretations of Preneed Contracts
The risk of COVID to family members is causing some preneed contract holders to rethink the traditional funeral they have purchased. During the early stages of the coronavirus spread, a handful of funerals were found to have been super spreader events. Dozens of attendees were infected, and several deaths resulted. Funeral homes have since implemented…