If the survivors ask about goods and services, change the preneed arrangements, or must pay additional amounts of money (e.g., in a contract that is nonguaranteed), the provider must give them the price list and make all disclosures required by the Funeral Rule. If the preneed contract was made before 1984 and has not been changed since, the rule does not apply unless the survivors of the deceased desire to change provisions of the original contract. For example, if a person made a preneed contract in 1983 and dies now without having changed any parts of it, the funeral director does not need to make the now- required disclosures and otherwise follow the set Funeral Rule. In contrast, if the deceased’s family wishes to purchase a more expensive casket, the funeral director must comply with all provisions of the Funeral Rule. The FTC has focused strong efforts on conducting unannounced “sweeps” of funeral homes, with agents acting as members of a family or “shoppers” to make certain the funeral homes are complying with the law. Again, it is essential for funeral professionals to know their specific state regulations regarding funerals, embalming, preneed contracts, and Medicaid (each state has its own limit as to how much a person can put into a preneed account for Medicaid spend-down purposes). Additionally, there are often rules specifying that any money left after a funeral paid for by such an account must be returned to the state, not kept by the home or given to the beneficiaries. Penalties for funeral home establishments that are found to be in violation will most likely require any violators to attend training, undergo additional testing, and pay fines. An ethical and reputable funeral home and its provider will ensure the following rights and protections during the sale of preneed arrangements: ● Provide a detailed price lists of goods and services before the customer makes their selections. ● Provide a written statement listing all of the goods and services selected and the price at the conclusion of the funeral arrangement conference. ● Give a written preneed funeral contract explaining, in plain language, the customer’s rights and obligations. ● Guarantee in the contract that if any of the goods or services that have been selected are not available at the time of need, goods and services of equal or greater value will be substituted at no extra cost. ● Explain in the contract the geographical boundaries of the funeral home’s service area and under what circumstances the customer can transfer the preneed contract to another funeral home if the customer were to relocate or if the death were to occur outside of the service area. ● State in the contract where and how much of the funds will be deposited until the funeral is provided. ● Explain in the contract who will be responsible for paying taxes on any income or interest generated by the preneed funds that are invested. ● Inform in the contract whether, and to what extent, the funeral home will guarantee the price of goods and services selected and purchased; if the prices are not guaranteed, the contract will explain who is responsible for any additional amounts that may be due at the time of the funeral. ● Explain in the contract whether and under what circumstances a preneed contract can be canceled and how much of the funds that have been paid will be refunded.
Street” business and were sealed with a handshake. Some efforts to obtain preneed business have historically been met with disdain from the public and professional associations. One example published in newspapers nationwide concerned an outraged woman who wrote to “Dear Abby,” explaining that a funeral home where she had attended a funeral took her contact information and called her two days later advocating preneed arrangements. These strategies tend to backfire as potential customers (both boomers and generation X) are becoming increasingly savvy and informed about funerals—and increasingly turned off by pushy sales tactics. State statutes may limit the way a provider or agent can contact a customer. Some states, for example, prohibit paying money or other valuable consideration to secure business or obtain the authority to dispose of a dead body. They may also prohibit an agent from visiting a hospital, gravesite, or visitation to solicit. Without a specific request from the individual involved, providers and agents cannot solicit from a person whose death is imminent or, for a certain period after death, from the person controlling the decedent’s body. Most states have requirements regarding the ways in which preneed information is presented, requiring that descriptions of services be written in clear, concise language using everyday words and avoiding complicated legal terms. If a complex term is necessary, its meaning should be clarified. Copying legal language from a document without explaining it is prohibited. Professionals who are offering services should use short explanatory sentences and bulleted lists, and they should avoid passive voice. The language must avoid repetition, wordiness, and multiple negatives such as “this contract is not irrevocable” so as to give consumers a clear sense of what is offered. Many of the individuals purchasing preneed arrangements are elderly, and some may be impaired by various disabilities that make decision making more time-consuming and/or difficult. In fact, people of any age, not just the elderly, may have some impairment. It is the obligation of the provider or agent to present information clearly and ensure to the greatest extent possible that the customer understands the terms of the agreement. One must also make every effort to understand the requests of customers who are elderly and/or impaired. Ethical concerns are particularly important with regard to senior citizens because elderly people may be more vulnerable to scams and less assertive with pushy sales tactics. Many seniors are not aware of their rights under the Funeral Rule. In an AARP study, for example, most elderly customers did not know they could pick individual items instead of buying a funeral package. The FTC also notes that senior citizens often do not know where to report fraud, do not know they have been scammed, or are ashamed to reveal it. Indeed, a 2007 AARP survey of preneed customers found that 37% did not know where they would go if they had a problem with their funeral plan. They may be less likely to question authority figures, more socially isolated, and less able to gather information through other sources such as the Internet. All funeral professionals are required to comply with the Funeral Rule when making a preneed contract at the time of purchase, just as for an at-need contract, as well as at the time of the death of the person who made the contract.
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