Administrative Rules of Montana › Department 24 - LABOR AND INDUSTRY › Chapter 24.147 - BOARD OF FUNERAL SERVICE › Subchapter 24.147.15 - Prearranged Funeral Agreements › Rule 24.147.1504 - PRENEED FUNERAL AGREEMENTS

Current through Register Vol. 13, July 5, 2024
(1) Every
				preneed funeral agreement executed in this state shall be reduced to writing,
				and must:
(a) be signed by the provider and
				by the purchaser or the intended funeral recipient or the intended funeral
				recipient's guardian, agent or next of kin, and
(b) include at least the following
				information:
(i) the name, address and
				telephone number of the mortuary intended to be utilized at the time of the
				agreement;
(ii) the name and
				license number of the individual licensee acting as or on behalf of the
				provider;
(iii) the purchaser's
				name, address and social security number;
(iv) the name, address and social security
				number of the intended funeral recipient;
(v) both a copy of the provider's current
				general price list and an itemized statement of funeral goods and services to
				be included in the agreement;
(vi)
				full and complete disclosure of how the agreement is to be funded;
(vii) whether the agreement is a guaranteed
				price agreement or nonguaranteed price agreement, which term, as applicable,
				shall be defined in the agreement in accordance with this subchapter; together
				with complete disclosure of how the planned funeral expenses shall be funded in
				the event the funds held by the trust are insufficient and means of disposition
				of any proceeds of the trust in excess of that needed for planned funeral goods
				and services;
(viii) complete
				disclosure of rates of interest to be accrued on the invested funds, including
				any fees to be charged against the invested funds, how those fees are
				determined and how, when and to whom such fees are paid.
(ix) full identification of the depository
				institution where the funds will be held, together with all pertinent account
				numbers or other means whereby the funds may be identified.
(c) provide that all funeral
				arrangements and prepaid funeral trust agreements are revocable upon demand of
				the purchaser, if alive, and if not, then by the intended funeral recipient
				where they are different persons. The amount of any and all moneys paid under
				or in connection with such an agreement together with any and all interest, if
				any, accrued thereon while on deposit shall be repaid on demand at any time
				prior to the delivery of the prepaid funeral goods or the performance of the
				prepaid funeral services. Upon the death of the intended funeral recipient, the
				intended funeral recipient's authorizing agent shall have the right to revoke
				the funeral arrangements and to sever the funeral funding arrangements from the
				funeral arrangements; except however, as provided in
				37-19-708,
				MCA the means of disposition specified by the preneed funeral agreement may not
				be changed by the authorizing agent. In those instances where a prepaid funeral
				agreement is revoked, the moneys used to fund the agreement, including all
				principal and all accrued interest, shall be paid to:
(i) the purchaser if alive, and if not, then
				to the personal representative or estate of the deceased purchaser;
				or
(ii) the intended funeral
				recipient if the funds originally paid for a prepaid funeral agreement belonged
				to the intended funeral recipient and the agreement is funded through a trust;
				or
(iii) the named beneficiaries on
				the insurance policy if the agreement is funded through a funeral insurance
				policy.
(d)
				notwithstanding the provisions of (c) above to the contrary, an agreement may
				provide that the trust shall be irrevocable during the lifetime of the
				beneficiary, if at the time of the signing of an agreement, the intended
				funeral recipient of the trust is an applicant for or recipient of, benefits
				pursuant to the regulations of any public assistance agency or the medicaid
				program and utilizing the eligibility criteria of the supplemental social
				security income program in regard to burial spaces and funds set aside for
				burial expenses; or, a person who reasonably anticipates applying for, or
				receiving, such benefits within six months. A prepaid funeral agreement made
				irrevocable pursuant to this subchapter shall not affect the selection of
				funeral goods or services or the selection of the funeral home. If the intended
				funeral recipient of the trust enters into an agreement, reasonably
				anticipating that the intended funeral recipient will become an applicant for,
				or recipient of these programs within six months from the execution of the
				agreement, the agreement shall provide that, in the event the intended funeral
				recipient does not become an applicant for, or recipient of, any of these
				programs within the six month period, the trust shall revert to a revocable
				trust.
(e) in circumstances wherein
				the agreement is made irrevocable, provisions must be made for a change of
				provider at the sole discretion of the purchaser or intended funeral recipient,
				without financial penalty or charge for such a change.
(f) provide that, unless otherwise specified
				therein, a prepaid funeral agreement anticipates the provision of prepaid
				funeral goods and services in the area served by the provider. The agreement
				shall further provide that, if the intended funeral recipient's place of death
				is in a location other than that served by the provider, alternative funeral
				arrangements will be necessary unless otherwise provided for in the terms of
				the agreement.
(g) provide for the
				provider's substitution of any funeral goods or services to be furnished or
				rendered thereunder for funeral goods of equal quality, value and workmanship,
				or services of equal quality and value in the event of the unavailability of
				any funeral goods or services set forth in the agreement. Any change in the
				price of the agreement resulting from such substitution of funeral goods and/or
				services shall be reflected in the statement of funeral goods and services
				rendered.
(h) provide that, in the
				case of an agreement funded through a funeral trust, if the purchaser
				predeceases the intended funeral recipient where they are different persons,
				and no provision is made within the agreement for designation of the
				purchaser's successor, then the intended funeral recipient shall automatically
				assume the legal right to administer the funeral trust as purchaser, including
				the right to withdraw any and all funds held in the funeral trust, and with all
				other rights formerly held by the purchaser.