With this post we will examine the new “Preneed Audit Fund” that SB32 proposes to create. Missouri funeral homes are already quite familiar with the state contract fee that was authorized in 2009 by Senate Bill No. 1. Per that law, the State Board began charging a fee on each preneed contract sold. That contract
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Missouri Seller Records: The Starting Point for an Audit Trail
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…
The NPS Appeals Opinion: What does it mean for Preneed Fiduciaries?
In an opinion issued last week, the Eighth Circuit Court of Appeals struck down key NPS trial rulings that resulted in a $491 million jury verdict against PNC Bank (as the successor to Allegiant Bank). The appeals opinion states that the trial court erred when it allowed the NPS receiver to argue tort based claims…
Missouri Funeral Legislation: The Funeral Consumer Board
A bill has been filed in the Missouri General Assembly that proposes to divide the State Board of Embalmers and Funeral Directors membership evenly between the public and industry representatives. That Board currently consists of 5 industry members and 1 public member. The bill sponsor, Representative Joe Don McGaugh, is from a district that includes…
Missouri’s Adequate Seller Records: the Contracts and Agreements
In our continuing review of the Missouri Seller Record Keeping proposal, the rule next addresses what a preneed seller must retain with regard to its consumer contracts. However, the proposal actually contains two sections requiring the retention of contracts and agreements (Section 2.A and Section 2.F). Of the two, Section 2.F is the more detailed:…
Missouri Preneed Seller Records: the Third Time did not prove a Charm
It’s been fifteen months and counting, but the Missouri State Board of Embalmers and Directors and their Division staff are still at odds over a rule for defining minimum record keeping requirements for preneed sellers. The Division staff first floated an “Adequate Records” rule in July 2015, but the draft was not formally submitted to…
Missouri Seller Records: KISS
When the Missouri State Board of Embalmers and Funeral Directors met June 30th to discuss a proposed rule defining new record keeping requirements for preneed sellers, one Board member spoke a sentiment that many funeral directors share: keep it simple, stupid. The Board member suggested that consumer receipt records could be as simple as…
Missouri’s Second Round of Exams: The Committee’s Role
In September we posted about a regulation proposal that sought to define the role of a sub-committee of the Missouri State Board of Embalmers and Funeral Directors (Missouri’s Financial Examination Committee: What Role?). While the Board eventually gave its staff instructions to revise that proposal, the regulation has yet to resurface. Instead, the…
Missouri’s Second Round of Exams: Exit Interviews
In a prior post we alluded to Missouri preneed sellers’ complaints about the examination process, and that the follow up process to the on-site review has been unnecessarily burdensome. Subsequent to the examiner’s departure from the funeral home, the seller received an exception list of missing contracts or documents, which the seller can often quickly…
Missouri Preneed Examinations: Round 2
When the Missouri State Board of Embalmers and Funeral Directors meet on January 6th, the main topic of discussion will be the scope of the next round of preneed financial examinations. With the passage of Senate Bill No. 1 in 2009, the State Board was given the responsibility of conducting a preneed examination…