Missouri Code of State Regulations › Title 20 - DEPARTMENT OF COMMERCE AND INSURANCE › Division 2120 - State Board of Embalmers and Funeral Directors › Chapter 2 - General Rules › Section 20 CSR 2120-2.106 - Preneed Funeral Contract Audit Fee Waiver

Current through Register Vol. 49, No. 14, July 15, 2024
PURPOSE: This rule waives the twenty-five dollar
				  ($25) statutory state audit fee paid by consumers who are impacted by the
				  receivership of National Prearranged Services ("NPS").
EMERGENCY STATEMENT: In March 2024, Missouri funeral
				  homes and Missouri consumers began receiving notices from the Texas Special
				  Deputy Receiver (SDR) providing notification that orphan (no insurance
				  involved) preneed contracts were being terminated by the receivership. Notices
				  also provided expected refunds, as determined by the SDR. In many cases, the
				  refunds would not be the full amount consumers paid toward their preneed
				  contract due to the criminal actions by NPS which resulted in the receivership.
				  The receivership, through communication with the State Board of Embalmers and
				  Funeral Directors (board), indicated consumers could begin receiving refunds as
				  early as May 2024. Section 436.460.5 RSMo, authorizes the board to collect an
				  annual reporting fee from each preneed seller per contract written. The fee is
				  customarily (although not always) charged to the consumer in a preneed contract
				  and noted as a "State Audit Fee." This practice is authorized by Sections
				  436.460.5, RSMo. The preneed seller is to pay the fee at the time of filing of
				  their annual report during the license renewal period. The license renewal
				  window occurs from September 1 through October 31 annually. This proposed
				  emergency rule attempts to minimize the impact of financial loss to the
				  consumer/preneed seller by waiving the preneed contract audit fee for consumers
				  or preneed sellers who enter a new (replacement) contract because of the NPS
				  receivership action. The State Board of Embalmers and Funeral Directors
				  believes this emergency rule is fair to all affected Missouri consumers and
				  Missouri preneed sellers.
As notice from the Texas Special Deputy Receiver has
				  been provided to consumers regarding termination of orphan preneed contracts
				  along with notice of pending refunds along with the upcoming annual renewal
				  period beginning in September 2024, the board has determined this emergency
				  rule is necessary to minimize any continued financial harm to Missouri citizens
				  and Missouri preneed sellers. As a result, the State Board of Embalmers and
				  Funeral Directors finds there is an immediate danger to the public health,
				  safety, and/or welfare and a compelling governmental interest that requires
				  this emergency action. A proposed rule that covers the same material is
				  published in this issue of the Missouri Register. The scope of this emergency
				  rule is limited to the circumstances creating the emergency and complies with
				  the protections extended in the Missouri and United States Constitutions. The
				  State Board of Embalmers and Funeral Directors believes this emergency rule is
				  fair to all interested persons and parties under the circumstances. This
				  emergency rule was filed April 29, 2024, becomes effective May 14, 2024, and
				  expires February 20, 2025.
(1) The board may waive the per contract
				annual reporting fee required by section 436.460.5, RSMo, and rule
				20 CSR
				2120-2.100(1)(DD) for any seller who
				has entered into a contract for preneed funeral services with a consumer
				impacted by the receivership of National Prearranged Services
				("NPS").
(2) To request a waiver,
				the seller shall submit its request in writing to the board along with its
				annual report and provide any additional documentation as the board may
				request. The board may provide a form with requested information.
(3) Waivers may only be granted where the
				consumer has not been charged any State audit fee (or similar reporting fee) or
				the seller has affirmed the consumer shall receive a refund or credit of any
				fee previously paid. In no event shall any waiver exceed twenty-five dollars
				($25) per contract.
(4) In the event
				any waiver is denied, the seller shall remit the reporting fee due within sixty
				(60) days' notice.
(5) This rule
				shall sunset on October 31, 2026.