Preneed Funeral Planning Flashcards

A preneed contract that specifies exact goods and services to be provided, regardless of price changes at the time of death, is called a:

Answer: Guaranteed preneed contract

A guaranteed preneed contract locks in specific merchandise and services at the contracted price; any cost difference is absorbed by the funeral home.

Under the FTC Funeral Rule, a funeral home must provide a General Price List (GPL) to anyone who:

Answer: Inquires in person about funeral arrangements or prices

The FTC Funeral Rule requires funeral homes to offer the GPL to anyone who inquires in person about funeral arrangements or the prices of funeral goods or services.

What happens to the interest earned on preneed trust funds in most states?

Answer: It stays in the trust and is applied to the final bill or returned to the family

In most states, interest earned on preneed trust funds remains in the trust and is used to offset cost increases or is refunded to the estate upon death.

Which of the following is a key difference between a revocable and an irrevocable preneed contract?

Answer: Revocable contracts allow the purchaser to cancel and receive a refund

A revocable contract allows the purchaser to cancel the agreement and reclaim their funds, while an irrevocable contract does not allow cancellation.

A funeral director selling preneed contracts must typically hold what type of license in addition to their funeral director license?

Answer: Preneed sales license or registration

Most states require funeral directors who sell preneed contracts to hold a separate preneed sales license or registration issued by the state regulatory authority.

If a funeral home goes out of business, what protects the preneed funds of its customers?

Answer: The state preneed consumer protection fund or mandated trust requirements

State-mandated trust requirements and, in many states, preneed consumer protection funds ensure that funds are available to customers even if the funeral home closes.

Which document given to a preneed purchaser outlines all the specific funeral goods and services included in their arrangement?

Answer: Statement of Funeral Goods and Services Selected

The Statement of Funeral Goods and Services Selected (SFGSS) is the itemized form required by the FTC Funeral Rule that lists everything the consumer has chosen and their prices.