When the Missouri State Board of Embalmers and Funeral Directors meet this week, the role of the Board’s Financial Examination Committee will be discussed. As established, the Financial Examination Committee was intended to expedite the exam process. The initial Committee consisted of the Board’s public member and a former industry member who had previously acknowledged
Missouri Preneed Tax Cut: The Contract Fee
Using its emergency rulemaking authority, the Missouri State Board of Embalmers and Funeral Directors reduced the state preneed contract fee from $36 to $25. The change is to go in effect on September 1, 2015, the first day of the next reporting period.
Trustee Investment Liability: The Preneed Purchaser Wild Card
Back in March, the NPS Special Deputy Receiver won a judgement of $355 million against PNC Bank (as successor to Allegiant Bank). In defense of Allegiant Bank, PNC argued that Missouri’s Chapter 436 defined the trustee’s duties as owed solely to the preneed seller. That was the intent of the Missouri Funeral Directors Association when
Missouri Audits: What’s in store for round 2?
The Missouri State Board of Embalmers and Funeral Directors will meet August 4th and 5th to discuss legislation, regulation drafts and changes to the examination process. The State Board examiners are completing the first audit of each preneed seller, and the scope and procedures for the next round of preneed audits will be discussed. Use
Missouri Funeral Trust: Seeking a Gag Order
On July 27th, a Missouri court will consider a motion filed by the Missouri State Board of Embalmers and Funeral Directors to be dismissed from the lawsuit filed by the Missouri Funeral Trust. One of the allegations made by the Missouri Funeral Trust was that confidential information obtained by a state auditor regarding the program’s
Preneed Trust Shortages: Deposit Plus Accounting
During its state convention, the executive director for the Missouri Funeral Director and Embalmers Association stated that their master trust program would have a $3 million dollar surplus if all preneed contract beneficiaries were to die that day. If the Missouri program were being administered pursuant to common trust fund rules, there should not be
The Missouri Agenda: a few clean up provisions
The Missouri State Board of Embalmers and Funeral Directors will meet to July 21st to discuss “a short slate” of legislation and regulation proposals. While many of the proposals have been previously discussed, some, such as the preneed shortage funding requirement, are new. We also note regulation proposals regarding when forms and reports
Criminal Intent: Use of the Wrong Deposit Book
An Oklahoma funeral director faces serious prison time over the deposit of preneed funds to his business operating account. The Oklahoma Department of Insurance decided to go to a local prosecutor when a Department audit found the funeral director had routinely failed to deposit consumer funds to the preneed trust required by state law. The
NPS’ Legacy of Damages: No One Knows How Deep the Waters Were
When NPS first collapsed, the estimate of the company’s liabilities to funeral homes was reported to have been as much as a billion dollars. When the SDR finally brought the case to trial, the damages awarded by the jury were less than half of the original estimate. While this author believes the actual damages are
Measure twice, cut once: Missouri funeral rule proposals
As discussed in a prior post, the Missouri State Board of Embalmers and Funeral Directors is now four years removed from Senate Bill No. 1 and the exigent circumstances that authorized emergency rules. The State Board must now address several issues through the formal rulemaking process. Understanding that the process may take a year or