Missouri’s pending preneed exam handbook will establish a new record keeping requirement for the state’s preneed sellers: monthly records of consumer payment receipts and the transmission of those funds to the preneed funding agent.  Seller record keeping proposals are not new to the Board.   (Missouri Seller Records: The State Board Proposal) The Board’s

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 reached.  

Prosecutors and investigators have commented to our office about how difficult it can be to prove preneed fraud.   They won’t know whether the consumer has been harmed until the death of the contract beneficiary, and then whether the funeral is provided.  In Missouri, prosecuting a bad apple funeral director got much easier as of January

Missouri’s preneed seller records proposal would require preneed sellers to retain all communications that relate to their preneed contracts:

Any written (including electronic) communications between the seller and any preneed agent, provider, trustee, investment advisor, insurance company, purchaser and/or beneficiary of the preneed contract and any other person related to preneed contracts and the funding

With regard to preneed contracts that are canceled, Missouri preneed sellers are being requested to retain the following documents:

 (1)       All records providing any sort of notice to the seller of the cancellation of a preneed contract; and

(2)        All records showing the date, name of who is paid, the amount paid out and a