Preneed Funeral Planning Flashcards
7 cards from real Funeral Services practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Preneed Funeral Planning flashcards as text
What federal rule requires funeral homes to provide itemized pricing information to consumers?
Answer: The FTC Funeral Rule
The FTC Funeral Rule (16 CFR Part 453) requires funeral providers to give consumers itemized price information and a General Price List upon inquiry.
A preneed funeral contract funded through a life insurance policy is best described as what type of arrangement?
Answer: Insurance-funded preneed
An insurance-funded preneed contract uses a life insurance policy assigned to the funeral home to fund the prearranged funeral services.
In most U.S. states, what percentage of preneed funds collected must be placed into a trust?
Answer: 90% to 100%
Most states require 90% to 100% of preneed funds to be deposited into a regulated trust to protect consumers.
Which of the following best defines an 'irrevocable' preneed contract?
Answer: A contract that cannot be cancelled or transferred without the beneficiary's death
An irrevocable preneed contract cannot be cancelled by the purchaser and is often required for Medicaid eligibility because the funds are not counted as assets.
What is the primary purpose of preneed funeral planning from a consumer standpoint?
Answer: To relieve survivors of decision-making burden and lock in current prices
Preneed planning allows individuals to make their own arrangements in advance, relieving family members of emotional decisions and potentially locking in current pricing.
When a preneed contract purchaser moves to another state and wants to transfer their contract to a local funeral home, this is called a:
Answer: Portability transfer
Portability refers to the ability to transfer a preneed contract to another funeral home, though transfer rules and fees vary by state and contract terms.
Which government agency is primarily responsible for oversight of preneed funeral sales at the state level?
Answer: The State Insurance Department or State Funeral Board
Preneed funeral sales are regulated at the state level, typically overseen by the state funeral regulatory board, insurance department, or both.
How this page was made: written with AI tools and published by Nathan Beja, founder of Practice Test Geeks, who is responsible for its content. Exam facts are checked against the official sources listed below. Not reviewed by a subject-matter expert. Editorial policy
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