Statutory Law- Prepaid Funerals Exam Questions and Answers Graded A 2024

Statutory Law- Prepaid Funerals Exam Questions and Answers Graded A 2024 What is the maximum amount of money a person can deposit in a prepaid funeral trust account? -Answer-non-guaranteed: $20,000 ; guaranteed: no limit What percentage of prepaid trust funds may a funeral director with- hold and at what time may he withhold same? -Answer-10%- when first funds are collected What state official regulates prepaid funerals? -Answer-Insurance Commissioner What percentage of all prepaid funeral monies must be placed in trust? -Answer-90% guaranteed; 100% non guaranteed When must funds collected for prepaid funerals be deposited by an authorized funeral home into its prepaid funeral account, within what time period? -Answer-Within 10 days after collection of funds What is the minimum dollar amount needed to establish a prepaid funeral account? -Answer-$25 Annual reports for prepaid funeral accounts must be filed by what date? -Answer-March 15th What percentage of outer enclosure prepaid contract sales must be placed in trust? -Answer-65% If a prepaid funeral contract is entered by a funeral home in violation of law, what damages may a contract holder, beneficiary, heir, or personal representative recover in a court of law? - Answer-Triple the amounts paid to organization with interest at the rate of 6%; If a funeral home failed to timely renew its right to sell prepaid funerals, what length of time is it prohibited from selling prepaid funerals? -Answer-One year unless good cause is shown Before a funeral home can be authorized to sell prepaid funerals, what must it first acquire, what is the cost for same? -Answer-Permit- $50 Describe the two (2) types of prepaid funeral trust accounts authorized by statute, and if either may become irrevocable, give the circumstances as to how same can become irrevocable? - Answer-1. Specific and described funeral GUARANTEED price 2. Exact funeral merchandise and services to be selected at time of death- Prices NOT GUARANTEED.