Virginia Funeral Law Exam Pt3: Questions & Answers (100% Correct)
When a potential client inquires about making preneed arrangements, what 2 things must you provide to them? Right Ans - general price list & preneed disclosure Q&A
After the preneed arrangement conference, what must you provide to the client? Right Ans - copy of the preneed contract & funding contract
How can you be sure that your client received their copies of the preneed paperwork? Right Ans - Have them sign an acknowledgment.
True or False: If arrangements were made as a preneed, when the case becomes at need an itemized statement is not required Right Ans - False
Can a licensee charge finance charges on a preneed arrangement? Right Ans - No
If a contract buyer terminates the contract within 30 days, what will they be refunded? Right Ans - Everything paid & any interest
If the preneed was funded through a revocable trust & the buyer terminates the contract after 30 days, what will they be refunded? Right Ans - Everything paid for nonguaranteed items, at least 90% paid for guaranteed items & any interest
When can a preneed funded by an irrevocable trust be terminated? Right Ans - Within 30 days
An irrevocable trust cannot be terminated, but what 2 things can be changed? Right Ans - Contract Provider & Trustee
When a client pays for a preneed with cash or a check, when must the money go into an account? Right Ans - within 5 days
What type of account must funds from a preneed payment be deposited into? Right Ans - Escrow Can a client pay for their preneed with personal property? Right Ans - Yes
Can a client pay for their preneed with real estate? Right Ans - Yes
What happens to the deed when real estate is used to fund a preneed? Right Ans - The preneed contract is recorded as an attachment to the deed & filed in the clerks office.
When a preneed is funded by personal property, what 2 ways can this property be transferred? Right Ans - Actual delivery or transfer of title
Who is responsible to pay the taxes on accrued interest from a preneed trust account? Right Ans - Contract buyer
Can a licensee write a preneed for a funeral home other than their own? Right Ans - Yes, but only with written agreements.
Guaranteed Contract Right Ans - the cost of certain individual items or the cost of the total package will never cost more than contracted
Nonguaranteed Contract Right Ans - the costs may increase or decrease between the time of the agreement & the time of need.
Can a preneed have both guaranteed & nonguaranteed items? Right Ans - Yes
Can preneed funds be used to settle a debt, a bankruptcy or resolve a claim? Right Ans - No
If a client has complaints or concerns about a preneed, who should they contact? Right Ans - The Board
Individual license Renewal fee Right Ans - $225
Establishment license Renewal fee Right Ans - $400
Removal Service registration Renewal fee Right Ans - $300
When a potential client inquires about making preneed arrangements, what 2 things must you provide to them? Right Ans - general price list & preneed disclosure Q&A
After the preneed arrangement conference, what must you provide to the client? Right Ans - copy of the preneed contract & funding contract
How can you be sure that your client received their copies of the preneed paperwork? Right Ans - Have them sign an acknowledgment.
True or False: If arrangements were made as a preneed, when the case becomes at need an itemized statement is not required Right Ans - False
Can a licensee charge finance charges on a preneed arrangement? Right Ans - No
If a contract buyer terminates the contract within 30 days, what will they be refunded? Right Ans - Everything paid & any interest
If the preneed was funded through a revocable trust & the buyer terminates the contract after 30 days, what will they be refunded? Right Ans - Everything paid for nonguaranteed items, at least 90% paid for guaranteed items & any interest
When can a preneed funded by an irrevocable trust be terminated? Right Ans - Within 30 days
An irrevocable trust cannot be terminated, but what 2 things can be changed? Right Ans - Contract Provider & Trustee
When a client pays for a preneed with cash or a check, when must the money go into an account? Right Ans - within 5 days
What type of account must funds from a preneed payment be deposited into? Right Ans - Escrow Can a client pay for their preneed with personal property? Right Ans - Yes
Can a client pay for their preneed with real estate? Right Ans - Yes
What happens to the deed when real estate is used to fund a preneed? Right Ans - The preneed contract is recorded as an attachment to the deed & filed in the clerks office.
When a preneed is funded by personal property, what 2 ways can this property be transferred? Right Ans - Actual delivery or transfer of title
Who is responsible to pay the taxes on accrued interest from a preneed trust account? Right Ans - Contract buyer
Can a licensee write a preneed for a funeral home other than their own? Right Ans - Yes, but only with written agreements.
Guaranteed Contract Right Ans - the cost of certain individual items or the cost of the total package will never cost more than contracted
Nonguaranteed Contract Right Ans - the costs may increase or decrease between the time of the agreement & the time of need.
Can a preneed have both guaranteed & nonguaranteed items? Right Ans - Yes
Can preneed funds be used to settle a debt, a bankruptcy or resolve a claim? Right Ans - No
If a client has complaints or concerns about a preneed, who should they contact? Right Ans - The Board
Individual license Renewal fee Right Ans - $225
Establishment license Renewal fee Right Ans - $400
Removal Service registration Renewal fee Right Ans - $300
