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 Obligations to the Public ● I will make no representation, written or oral, that may be false or misleading or that is likely to defraud or deceive the public. ● I will abide by the provisions of the NFDA CPC Statement of Use regarding the appropriate and responsible use of the CPC designation. ● I will continue my professional education in this field. ● I further pledge to conduct myself at all times in a manner that deserves the public trust. Obligations to the Government ● I will continue to hold all necessary licenses to engage in providing preneed services and products in the state or states in which I practice. ● I will maintain my accountability to the client by complying with all applicable state and federal regulations and standards governing funeral preplanning, trust and insurance funding for funerals, and consumer protection.
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. 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 CPC Code of Ethics Following is the Certified Preplanning Consultant (CPC), pledge. Service to Families ● I will treat the information shared with me during the preplanning interview with confidentiality and integrity. ● I will offer my services to all without regard to religion, race, color, national origin, sex, sexual orientation or disability. ● I will at all times maintain the standards and obligations of the funeral home that I represent. ● I will provide my clients with detailed price lists of services and merchandise before they select services or merchandise, and at the conclusion of the funeral arrangement conference will provide a written statement listing all of the services and merchandise that have been purchased. ● I will properly account for and remit any monies, documents, or personal property belonging to others that come into my possession. ● I will answer any questions the client may have pertaining to the preneed agreement, including any guarantees and representations, and will attempt to resolve any problems efficiently and fairly and with due consideration given to the views and concerns of the client.
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Book Code: FTX1624
EliteLearning.com/Funeral
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