32-1391.09 - Prearranged funeral agreements funded by trust; consumer disclosures

32-1391.09. Prearranged funeral agreements funded by trust; consumer disclosures

A. Each prearranged funeral agreement funded by trust shall contain the following conspicuous notice that shall be initialed by the purchaser:

Notice to Purchaser

This prearranged funeral agreement is for the future funeral arrangements of (name of beneficiary) . The payments you make under this prearranged funeral agreement will be deposited in trust account number ____________ at the (office or branch) of the (name of financial institution) . Written notice will be mailed to you if this prearranged funeral trust account is transferred to another financial institution. That notice will include the name and location of the financial institution and the new prearranged funeral trust account number. The total monies intended to be deposited in this prearranged funeral trust account over the term of the agreement is $______________. An initial service fee of $________ has been charged which will be paid to this funeral establishment. If this prearranged funeral agreement is canceled, any portion of the initial service fee that has not been paid under the prearranged funeral agreement is no longer due and payable to the funeral establishment. An annual service fee of ________% of the annual accrued interest on the funds in the prearranged funeral trust account will also be charged for administrative and accounting expenses. If you wish to cancel this agreement, you must give the funeral establishment a written request to cancel before the trust funds will be refunded. If you cancel this prearranged funeral agreement within three business days after signing this prearranged funeral agreement, all monies paid, including all service fees, will be refunded to you. If remaining trust funds exist after performance of this prearranged funeral agreement, those funds will be refunded to the estate of the beneficiary. The prices of the funeral goods and services you have requested will be the prices in effect at the time of the future funeral arrangements.

Purchaser initials:________

B. A prearranged funeral agreement shall specifically itemize the funeral goods and services to be provided under the prearranged funeral agreement and any funeral, burial, cemetery or crematory expenses that are not covered under the prearranged funeral agreement.

C. Each fixed price prearranged funeral agreement funded by trust shall contain the following additional conspicuous notice that shall be initialed by the purchaser:

Fixed Price Contract Notice

This funeral establishment has agreed to charge you the prices listed in this prearranged funeral agreement for the funeral goods and services you have selected for the future funeral arrangements of (name of beneficiary) . However, you should note that this prearranged funeral agreement may be in effect for many years and that future events may affect our ability to honor this prearranged funeral agreement at the time of the funeral arrangements. If a funeral item is no longer manufactured or available at the time of the funeral arrangements, a substantially equivalent item acceptable to the person designated on this prearranged funeral agreement will be substituted. This prearranged funeral agreement should not be considered as insurance. You have agreed that the funeral establishment shall receive ________% of all interest accruing on the trust fund if it performs the future funeral arrangements as required by this prearranged funeral agreement. If the funeral establishment does not honor this prearranged funeral agreement, you may have legal remedies available to enforce this contract at the price you agreed to pay.

Purchaser initials:________

D. A fixed price prearranged funeral agreement funded by trust shall specifically itemize the funeral goods and services to be provided under the prearranged funeral agreement, the current prices to be charged for the funeral goods and services at the time of the future funeral arrangements and any burial, cemetery or crematory expenses that are not covered under the prearranged funeral agreement. If certain funeral goods to be provided under the prearranged funeral agreement are not manufactured or supplied at the time of the funeral arrangements, the funeral establishment shall provide substantially equivalent funeral goods that are acceptable to the person designated on the prearranged funeral agreement or the person legally responsible for final disposition of the beneficiary's remains. If any of these persons are unavailable, the substitution of funeral goods shall be determined by rules established by the department. A funeral establishment shall not represent or imply that the agreed to prices are guaranteed, frozen or otherwise an absolute economic certainty in the future. If a funeral establishment specifies the prices to be charged pursuant to this subsection, it shall delete the last sentence of the notice required by subsection A from the prearranged funeral agreement.

E. A prearranged funeral agreement funded by trust shall contain all terms of the prearranged funeral trust account agreement with the financial institution.

F. Each funeral establishment shall provide a copy of:

1. The prearranged funeral agreement for retention to each person who enters into a prearranged funeral agreement.

2. The funeral establishment's current price list for retention to each person who inquires about or is solicited regarding a prearranged funeral agreement.