Funeral Services Preneed Funeral Planning 3

Question 1

A preneed funeral contract is considered 'funded' when:

Accepted Answer

Money or an insurance policy has been assigned to cover the cost of the contract

Answer

The funeral director signs the arrangement form

Answer

The death certificate has been filed with the state

Answer

The consumer selects merchandise at the funeral home

Question 2

Under most state preneed laws, how long does a funeral home have to deposit preneed funds into trust after receipt?

Accepted Answer

30 to 45 days

Answer

6 months

Answer

1 year

Answer

Immediately upon signing

Question 3

What term describes a preneed arrangement where the funeral home agrees to provide exactly what was prearranged but may substitute equivalent items if specific merchandise is unavailable?

Accepted Answer

Comparable substitution clause

Answer

At-need replacement option

Answer

Equivalent-goods provision

Answer

Merchandise flexibility rider

Question 4

Which of the following is NOT typically covered in a preneed funeral contract?

Accepted Answer

Cemetery property (grave space)

Answer

Casket selection

Answer

Embalming or preparation services

Answer

Basic services of the funeral director

Question 5

When a preneed contract purchaser dies, who is responsible for notifying the funeral home and initiating the at-need services?

Accepted Answer

The next of kin or legally authorized person

Answer

The state funeral board

Answer

The preneed contract trustee

Answer

The attending physician

Question 6

A 'non-guaranteed' preneed contract means:

Accepted Answer

The price is not locked in and the family may owe additional funds at the time of death

Answer

The contract will never be honored

Answer

The trust funds earn no interest

Answer

The funeral home can cancel the contract at any time

Question 7

Which of the following best describes the role of a preneed counselor?

Accepted Answer

A funeral home staff member who assists consumers in planning and funding funeral arrangements in advance

Answer

A licensed therapist who helps families cope with grief after a death

Answer

A state regulator who audits preneed trust accounts

Answer

An attorney who drafts preneed contract language