Funeral Services Preneed Funeral Planning 3

Question 1

A preneed funeral contract is considered 'funded' when:

Accepted Answer

Money or an insurance policy has been assigned to cover the cost of the contract

Answer

A preneed contract is funded when payment is secured through a trust deposit, insurance policy assignment, or other approved financial vehicle designated to pay for the services.

Question 2

Under most state preneed laws, how long does a funeral home have to deposit preneed funds into trust after receipt?

Accepted Answer

30 to 45 days

Answer

Most states require preneed funds to be deposited into a qualifying trust account within 30 to 45 days of receipt to ensure consumer protection.

Question 3

What term describes a preneed arrangement where the funeral home agrees to provide exactly what was prearranged but may substitute equivalent items if specific merchandise is unavailable?

Accepted Answer

Comparable substitution clause

Answer

A comparable substitution clause allows the funeral home to substitute merchandise of equal or greater value if the exact prearranged item is no longer available.

Question 4

Which of the following is NOT typically covered in a preneed funeral contract?

Accepted Answer

Cemetery property (grave space)

Answer

Cemetery property such as a grave space or burial plot is sold separately by the cemetery and is generally not included in a funeral home's preneed contract.

Question 5

When a preneed contract purchaser dies, who is responsible for notifying the funeral home and initiating the at-need services?

Accepted Answer

The next of kin or legally authorized person

Answer

The next of kin or legally authorized representative contacts the funeral home at the time of death to activate the preneed contract and arrange services.

Funeral Services Practice Test

Funeral Services Practice Test

Funeral Services Preneed Funeral Planning 3