Washington State funeral LRR 308-49 Prearrangement Funeral Services Exam Questions and Answers

Washington State funeral LRR 308-49 Prearrangement Funeral Services Exam Questions and Answers Sales price using either a trust or insurance - Answer-Guarantees a final price for merch and services. Sales price using a trust - Answer-A trust plus accruals will be applied toward the cost of merch and services at the time of need. If cost exceeds the sales price plus accruals the purchaser must pay the difference, if the cost is less then the purchaser receives a refund. Insurance - Answer-Method of funding guaranteeing a final price for merch and services. Certificate of registration - Answer-FH must have certificate of registration before entering into preneed contracts by applying on forms approved by the board. Paperwork must include; name, address, phone number, statement of FH current financial condition and an explanation of how the establishment plans to offer, market and service preneed contracts including; type of business e.g. sole proprietorship, partnership, etc., (balance sheet and profit and loss statement for most recent fiscal year.) Preneed contract forms to be used- final printed form to be filed with board, ID of trustee of funeral service trust, copy of preneed trust agreement and the preneeed funeral service depository agreement. Application must include a check payable to the state treasurer in the amount required. Prearrangement funeral service contract form requirements - Answer-Terms of contract must be of substantial importance to both FH and consumer and written in easily understood language and easily readable type size and style. Must include the following; description of services and merch, whether or not specific services are to be done, statement that clearly states whether the purchaser pays in full or if amount paid goes toward cost of merch and services, total purchase price to be paid, all funds placed in trust plus net accruals are subject to refund. All contracts to be dated and executed by purchaser and FH owner, officer or managing agent. Prearrangement funeral service trust agreement requirements - Answer-If not using insurance as a method of funding then FH shall establish one or more trust agreements. Agreement shall include; min of 2 trustees, duties and responsibilities, method of removal of trustees, selection of depositories, details as to investment and admin of trust, compensation of trustees and expenses to be incurred, accounting methods, provisions for amendment and termination of trust agreement.