TN LRR Study Guide (Latest
UPDATE) Questions & Answers 100%
Correct
What do you need to cash in a trust? 17 - Correct answer Certified copy of D.C., copy of
the terms and conditions of Preneed contract, balance if any and what is due the
purchaser or their estate if anything.
What must the preneed seller do if it receives more money from the preneed than the
services cost? - Correct answer They MUST refund the excess money to the estate or
named beneficiary.
Can revocable trusts be made irrevocable? - Correct answer Yes, by petition to the
chancery or probate or general sessions courts.
Who are excluded from the preneed trusting funeral laws? - Correct answer Burial
Associations where the benefits do not exceed $100.00.
,What is a contract seller in preneed terms? - Correct answer A person, partners, firm,
association, corporation who sells preneed funeral service contracts.
What is a contract buyer? - Correct answer A person, (not always the beneficiary) who
purchases preneed from a contract seller.
What is a contract beneficiary? - Correct answer A dead person in a preneed contract
who for the funeral service, merchandise is preformed, provided and delivered.
What records must the contract seller and trustee maintain? - Correct answer
Accurate account books and records. All preneed contract documents for each and
every contract in a separate file. Dates and amounts of payments made and accepted.
Name and address of each and every contract buyer, beneficiary, and trustee holding
the funds for each and every account book.
How long must the contract seller keep all preneed records? - Correct answer 2
years from the date of the performance or termination. These records are always open
,to inspection and examination by the board during normal business hours at the
contract seller's place of business.
When is the contract sellers and trustees annual report due? - Correct answer No
later than March 15th .
What must be done with trust instruments? - Correct answer They must be filed with
the commissioner, have the name of the contract seller, name of trustee, spell out the
trustees' duties, give a basis for the trustees' fee, must be available on request by the
contract buyer.
What is done with deposits? - Correct answer Beginning July 1, 2019, if a pre-need
funeral contract purchaser chooses to fund the contract by a trust, then the pre-need
seller must deposit the funds with the trustee within 15 days of receipt. The pre-need
seller must also furnish the name of each beneficiary and the amount of payment on
each to the trustee at the time of 18 deposit. Additionally, trust accounts may now be
established as a separate fund for each pre-need funeral contact, for multiple
contracts issued by a single pre-need seller, or for multiple contracts issued by
, multiple sellers based in the State of Tennessee. Further, the trustee must furnish a
semi-annual financial report concerning the trust to the department. Finally, if the
trust is managed by a board then the trustee is required to maintain liability insurance
on each board member.
What happens when a trust is revoked? - Correct answer The trustee and institution
must notify the contract seller if the contract buyer exercises withdrawal.
What must be included in all preneed forms? - Correct answer • Form must be
approved by the Commissioner. • A statement saying whether the preneed contract is
revocable or irrevocable. • If the contract is revocable, a statement saying: Purchaser
shall be entitled to receive any or all payments made and any earnings or interest
upon demand upon the trustee before the death of the contract beneficiary. • If the
contract is irrevocable, a statement saying in bold face uppercase letters: That the
contract is irrevocable. b. The funds are not refundable. c. Accumulated trust principal
and interest are used to satisfy the funeral expenses at ANY LICENSED TENN.
FUNERAL ESTABLISHMENT. • Paid or unpaid disclosures: Trust funds are to be applied
to the funeral, and if the amount in the trust exceeds the prevailing price the balance
UPDATE) Questions & Answers 100%
Correct
What do you need to cash in a trust? 17 - Correct answer Certified copy of D.C., copy of
the terms and conditions of Preneed contract, balance if any and what is due the
purchaser or their estate if anything.
What must the preneed seller do if it receives more money from the preneed than the
services cost? - Correct answer They MUST refund the excess money to the estate or
named beneficiary.
Can revocable trusts be made irrevocable? - Correct answer Yes, by petition to the
chancery or probate or general sessions courts.
Who are excluded from the preneed trusting funeral laws? - Correct answer Burial
Associations where the benefits do not exceed $100.00.
,What is a contract seller in preneed terms? - Correct answer A person, partners, firm,
association, corporation who sells preneed funeral service contracts.
What is a contract buyer? - Correct answer A person, (not always the beneficiary) who
purchases preneed from a contract seller.
What is a contract beneficiary? - Correct answer A dead person in a preneed contract
who for the funeral service, merchandise is preformed, provided and delivered.
What records must the contract seller and trustee maintain? - Correct answer
Accurate account books and records. All preneed contract documents for each and
every contract in a separate file. Dates and amounts of payments made and accepted.
Name and address of each and every contract buyer, beneficiary, and trustee holding
the funds for each and every account book.
How long must the contract seller keep all preneed records? - Correct answer 2
years from the date of the performance or termination. These records are always open
,to inspection and examination by the board during normal business hours at the
contract seller's place of business.
When is the contract sellers and trustees annual report due? - Correct answer No
later than March 15th .
What must be done with trust instruments? - Correct answer They must be filed with
the commissioner, have the name of the contract seller, name of trustee, spell out the
trustees' duties, give a basis for the trustees' fee, must be available on request by the
contract buyer.
What is done with deposits? - Correct answer Beginning July 1, 2019, if a pre-need
funeral contract purchaser chooses to fund the contract by a trust, then the pre-need
seller must deposit the funds with the trustee within 15 days of receipt. The pre-need
seller must also furnish the name of each beneficiary and the amount of payment on
each to the trustee at the time of 18 deposit. Additionally, trust accounts may now be
established as a separate fund for each pre-need funeral contact, for multiple
contracts issued by a single pre-need seller, or for multiple contracts issued by
, multiple sellers based in the State of Tennessee. Further, the trustee must furnish a
semi-annual financial report concerning the trust to the department. Finally, if the
trust is managed by a board then the trustee is required to maintain liability insurance
on each board member.
What happens when a trust is revoked? - Correct answer The trustee and institution
must notify the contract seller if the contract buyer exercises withdrawal.
What must be included in all preneed forms? - Correct answer • Form must be
approved by the Commissioner. • A statement saying whether the preneed contract is
revocable or irrevocable. • If the contract is revocable, a statement saying: Purchaser
shall be entitled to receive any or all payments made and any earnings or interest
upon demand upon the trustee before the death of the contract beneficiary. • If the
contract is irrevocable, a statement saying in bold face uppercase letters: That the
contract is irrevocable. b. The funds are not refundable. c. Accumulated trust principal
and interest are used to satisfy the funeral expenses at ANY LICENSED TENN.
FUNERAL ESTABLISHMENT. • Paid or unpaid disclosures: Trust funds are to be applied
to the funeral, and if the amount in the trust exceeds the prevailing price the balance
