Code of Massachusetts Regulations › 239 CMR - BOARD OF REGISTRATION IN EMBALMING AND FUNERAL DIRECTING › Title 239 CMR 4.00 - Pre-need Funeral Contracts and Arrangements › Section 4.06 - Transfer of Pre-need Funeral Contracts

Current through Register 1525, July 5, 2024
(1) Upon receipt of written authorization to
			 do so from the Buyer of a Pre-need Funeral Contract, or the Buyer's legal
			 representative, a Licensed Funeral Establishment shall transfer or assign that
			 Pre-need Funeral Contract to another Licensed Funeral Establishment designated
			 by that Buyer or legal representative, provided that the funeral establishment
			 to whom the contract is to be transferred or assigned has indicated in writing
			 that it will agree to honor that contract. The terms of the contract shall not
			 be modified at the time of the transfer, but may be amended by means of a
			 written agreement between the Buyer and the transferee funeral establishment
			 after the transfer of the contract and all funds connected with that contract
			 has been completed. All such amendments shall be subject to the limitations on
			 amendments of Pre-need Funeral Contracts, as set forth in
			 239 CMR
			 4.04.
(2) In the event of any transfer or
			 assignment of a Pre-need Funeral Contract pursuant to 239 CMR 4.06(1):
(a) If any funds received by the transferor
			 funeral establishment from the Buyer in connection with that Pre-need Funeral
			 Contract are being held in a Funeral Trust Account pursuant to
			 239 CMR
			 4.09, all such funds shall be transferred to
			 the transferee funeral establishment within ten business days, as provided in
			 239 CMR
			 4.09(5). The transferee
			 funeral establishment shall furnish written confirmation to the Buyer, and the
			 Beneficiary (if different), that these funds have been received by the
			 transferee funeral establishment and deposited in a Funeral Trust Account which
			 meets the requirements of
			 239 CMR
			 4.09 not later than 30 days after the
			 transfer or assignment of the Pre-need Funeral Contract occurs. The transferee
			 funeral establishment shall notify the Buyer, in writing, of the identity and
			 location of the banking institution in which the funds were deposited and which
			 will serve as the Trustee of the new Funeral Trust Account.
(b) If any funds in connection with that
			 Pre-need Funeral Contract were used to purchase a Pre-need Insurance Policy or
			 Annuity pursuant to
			 239 CMR
			 4.10, the transferor funeral establishment
			 shall send a copy of the Buyer's written authorization for transfer of that
			 Pre-need Funeral Contract to the insurance company which issued the Pre-need
			 Insurance Policy or Annuity and request that the insurance company take all
			 necessary and appropriate steps to modify the insurance policy so that the
			 transferee funeral establishment may receive payment for any funeral goods and
			 services it provides to the Beneficiary of that policy. The transferor funeral
			 establishment shall furnish written confirmation to the Buyer, and the
			 Beneficiary (if different), that the request for transfer of the Pre-need
			 Funeral Contract and appropriate modification of the insurance policy have been
			 sent to the insurance company which issued the Pre-need Insurance Policy or
			 Annuity not later than 30 days after the transfer or assignment of the Pre-need
			 Funeral Contract occurs.