It was once fairly common for a funeral director to take a preneed purchaser’s funds and establish a joint account at a local bank. Missouri’s preneed law contemplates the transaction and requires that the funeral home and the purchaser have joint control over the account. Prior to 9/11, banks would freely provide account forms, allowing the
Preneed
Preneed Portability: easier said than done
By Bill Stalter on
So why is it so tough to provide preneed portability? Because the transaction has been defined by state law as a contract between a consumer and a death care company, and federal regulators tend to agree. When the issue has arisen in the context of federal preemption, the interests of the state regulator have prevailed…
100% Trusting and Restraint of Trade
By Bill Stalter on
Before the guaranteed preneed contract, funeral directors accepted pre-payment on funeral arrangements as an accommodation to their families. Funds were typically placed in a joint account or POD account at the local bank. As this practice became more common, “preneed’ laws were passed to establish requirements regarding the deposit and withdraw of funds. These laws were fairly simple…
Restraint of Trade Issue #1: restricting who can sell or provide preneed
By Bill Stalter on
Posted in Preneed
Although it may not be apparent from the press release or the final Decision And Order, the FTC proceeding against the Missouri State Board of Embalmers and Funeral Directors has restraint of trade implications for future efforts to regulate the preneed transaction.
The focus of the FTC inquiry was on the State Board’s lawsuit…
The Costs of Death
By Bill Stalter on
Posted in Preneed
A year ago, the Dayton JournalNews ran a series of articles about the regulation of the death care industry in Ohio. The reporting was comprehensive, with articles about preneed. Earlier this year, legislation was introduced in Ohio to further restrict who could sell preneed. However, the legislation does not address the trusting issues that rankle consumer advocates. …
The NPS Class Action Lawsuit: James & Gahr
By Bill Stalter on
Posted in NPS/Lincoln, Preneed
The class action lawsuit brought against the NPS affiliates on Friday, June 20th reflects the despair that some funeral directors are experiencing over the situation. Although litigation to recover assets from the Cassity Empire was inevitable, this lawsuit has flaws that need to be corrected through an organized effort brought by the states’ regulators.
Funeral…
Missouri Preneed Reform: Act 3
By Bill Stalter on
On June 11th, Senator Delbert Scott met with a number of death care industry members and regulators to begin mapping out the direction for preneed reform in Missouri. From that meeting, it was decided that the state’s death care regulators would form review committees that would facilitate a dialog on the issues, and…
The First Salvo: Nixon and the NPS affiliates
By Bill Stalter on
Posted in NPS/Lincoln, Preneed
In what may prove to be a lengthy legal proceeding, Missouri Attorney General Jay Nixon filed suit against Forever Network, Inc., an affiliate of National Prearranged Services (NPS). While the suit may duplicate the injunctions effected by the Agreed Order obtained by the Texas Department of Insurance, consumers should take comfort by the fact Mr. Nixon has begun taking action.
While it…
Debunking what trust myth?
By Bill Stalter on
Posted in Preneed
Preneed companies often reach too far in touting the advantages of their company or product. Such is the case with an article in the June edition of the American Funeral Director. Not to be confused with the infamous Lincoln Memorial Life, Lincoln Heritage Life offers advice why insurance funded preneed is often a better choice for funeral…
Waiting for the other shoe(s) to drop
By Bill Stalter on
Posted in NPS/Lincoln, Preneed
Funeral directors will attempt to leverage the Funeral Service Insider’s report about the NPS contributions to state politicians, but they should do so with caution.
The story does not paint the entire picture of NPS’ efforts to influence the politics that controlled Missouri’s preneed industry. The amount attributed to the Missouri efforts ($168,000) seems low. Granted it…