In addition, many cemeteries, such as religious and municipal cemeteries, are exempt from state regulation. These regulations vary in scope, approach, and requirements. Every state except Alabama has a law governing the sale of preneed funeral and burial contracts. If the preneed contract is funded with an insurance product, some states require that the seller be a licensed insurance agent. The percentage of individual preneed funeral agreement funds that funeral directors are required to put into trust varies across the states.
Some states have no such requirement.
Other states have requirements ranging from 40 percent to 100 percent. Among those states that require trusting for preneed cemetery agreements, funding amounts range from about 30 percent to 100 percent. Contract Provisions and Cancellation Requirements State preneed laws contain different requirements regarding the form and content of preneed contracts. Some states only require that the contract be in writing and include the names of the parties and the terms of the agreement. The procedures for canceling a preneed funeral or burial contract vary from state to state, as does the amount of money that is refundable to the purchaser upon cancellation.