Prepaid Funeral Statute Exam with correct Answers

Prepaid Funeral Statute Exam with correct Answers 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 withhold and at what time may he withhold them? -Answer-10% ; when 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-non-guaranteed: 100% ; guaranteed: 90% When must funds collected for prepaid funerals be deposited by an authorized funeral home into its prepaid funeral account, and within what time period? -Answer-within 10 days after the collection of the 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 15 What percentage of outer enclosure prepaid contract sales must be placed in a 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 the organization w/ interest at a 6% rate 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-1 year (unless good cause is shown) Before a funeral home can be authorized to sell prepaid funerals, what must it first acquire, and what is the cost? -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 they can become irrevocable. - Answer-1. Guaranteed: specific and described funeral at a guaranteed price 2. Non-Guaranteed: exact funeral merchandise and services to be selected at time of death; prices are not guaranteed