Funeral Services Preneed Funeral Planning

Question 1

What federal rule requires funeral homes to provide itemized pricing information to consumers?

Accepted Answer

The FTC Funeral Rule

Answer

The Sherman Antitrust Act

Answer

The Consumer Protection Act

Answer

The National Funeral Standards Act

Question 2

A preneed funeral contract funded through a life insurance policy is best described as what type of arrangement?

Accepted Answer

Insurance-funded preneed

Answer

Irrevocable trust-funded preneed

Answer

Pay-at-need contract

Answer

Mutual benefit agreement

Question 3

In most U.S. states, what percentage of preneed funds collected must be placed into a trust?

Accepted Answer

90% to 100%

Answer

50%

Answer

75%

Answer

25%

Question 4

Which of the following best defines an 'irrevocable' preneed contract?

Accepted Answer

A contract that cannot be cancelled or transferred without the beneficiary's death

Answer

A contract that can be cancelled at any time for a full refund

Answer

A contract that automatically renews each year

Answer

A contract funded by a bank certificate of deposit

Question 5

What is the primary purpose of preneed funeral planning from a consumer standpoint?

Accepted Answer

To relieve survivors of decision-making burden and lock in current prices

Answer

To receive a discount on funeral merchandise

Answer

To avoid paying sales tax on funeral goods

Answer

To ensure the funeral home stays in business

Question 6

When a preneed contract purchaser moves to another state and wants to transfer their contract to a local funeral home, this is called a:

Accepted Answer

Portability transfer

Answer

Contract novation

Answer

Assignment of benefits

Answer

Interstate relocation clause

Question 7

Which government agency is primarily responsible for oversight of preneed funeral sales at the state level?

Accepted Answer

The State Insurance Department or State Funeral Board

Answer

The Federal Trade Commission

Answer

The Consumer Financial Protection Bureau

Answer

The Social Security Administration