In rejecting the $18 million settlement forced upon IFDA members, an Illinois Circuit Court is telling Merrill Lynch Life Agency to dig deeper into its pocket to compensate funeral homes. As reported by the Springfield Journal-Register, the $18 million represents the revenues the insurance broker received from the sale of key man insurance to
Bad Paper: Missouri’s looming audit dilemma
By Bill Stalter on
Posted in Missouri - SB1, Preneed
The Missouri Funeral Director and Embalmer Association provided crucial support to the passage of Senate Bill No. 1, but the heart of the association’s membership, the mom and pop operators, may now be second-guessing that decision.
SB1 provides regulators the authority to audit or examine preneed trusts and joint accounts, including those established prior to…
But for the veterans
By Bill Stalter on
Posted in Cemeteries
Veterans Day invariably results in a few newspaper articles similar to the one written about the Pittston City Cemetery. Out of respect for veterans’ graves, this small Pennsylvania town is seeking volunteers to provide care to its cemetery. Budget cuts and personnel cuts have left Pittston without the resources to provide maintenance to the…
Illinois Preneed Fund Migration: SB1682
By Bill Stalter on
With the upcoming new year, Illinois smaller funeral homes will begin searching for a corporate trustee for their preneed funds. With the Legislature’s approval of the Governor’s Amendatory Veto of SB1682, funeral directors lose the authority to serve as fiduciary of their own preneed funds.
Third time’s the Charm: Preneed Legislation
By Bill Stalter on
The old axiom was that it would take three consecutive legislative sessions to get a preneed bill passed. If Missouri and Illinois are indicators of the current preneed reform movement, the charm may be based not on attempts but actual bills passed by the legislature.
The Illinois Comptroller’s proposal for preneed reform, SB1682, is progressing…
Confusion over the California Master Trust
By Bill Stalter on
The September edition of the Mortuary Management ran an excerpt from a Funeral Monitor article about the California Master Trust suffering a deficit.
If the story is accurate about the master trust’s shortage, the author’s speculation about the reasons for the deficit omits a possible factor that has existed for years: the 4% administration fee.
As explained…
Cemetery Preneed Oversight: the bucket factor
By Bill Stalter on
Posted in Cemeteries, Preneed
Recent cemetery failures are causing regulators from Illinois, Missouri and Kansas to take a closer look at the oversight provided for preneed sales of vaults, markers, urns and burial services.
Cemetery preneed is a different animal for that offered by funeral homes. As Mr. Newcomer suggested to a reporter, the big difference between the…
Illinois’ Cemeteries and SB 1682
By Bill Stalter on
Posted in Cemeteries
NPS’ sister corporation, Forever Illinois, used the Illinois self trusting provisions to administer preneed funds. As with funeral operators, Senate Bill 1682 will force Illinois cemeteries to seek corporate fiduciaries to administer their preneed and endowed care funds.
The Illinois Comptroller’s Doubletalk: Who’s the Seller?
By Bill Stalter on
Posted in IFDA
Last week’s exchange between the State Journal-Register and the Illinois Comptroller’s office underscores just how poorly some regulators (and funeral directors) understand the preneed transaction.
The newspaper’s June 24th editorial included the following statement:
The directors allege they didn’t find out about the audit until fall 2007 when the comptroller revoked the IFDA’s license to…
A shotgun wedding: The Comptroller’s elimination of the self-trusted arrangement
By Bill Stalter on
The battle to reform Illinois’ preneed funeral law was renewed by the Comptroller’s office with the release of his Amendment to Senate Bill 1862. Reform in Illinois will take months, and the final product may differ substantially from the Comptroller’s proposal. However, SB 1862 flags Mr. Hynes’ priorities, and one of those priorities could…