Funeral Services Preneed Funeral Planning 2

Question 1

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

Accepted Answer

Guaranteed preneed contract

Answer

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

Question 2

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

Accepted Answer

Inquires in person about funeral arrangements or prices

Answer

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.

Question 3

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

Accepted Answer

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

Answer

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.

Question 4

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

Accepted Answer

Revocable contracts allow the purchaser to cancel and receive a refund

Answer

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

Question 5

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

Accepted Answer

Preneed sales license or registration

Answer

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

Funeral Services Practice Test

Funeral Services Practice Test

Funeral Services Preneed Funeral Planning 2