New Jersey Administrative Code › Title 13 - LAW AND PUBLIC SAFETY › Chapter 36 - STATE BOARD OF MORTUARY SCIENCE › Subchapter 11 - PREPAID FUNERAL AGREEMENTS AND ARRANGEMENTS › Section 13:36-11.3 - Contents of a prepaid funeral agreement

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Every prepaid funeral agreement shall be signed by the provider, the purchaser or the intended funeral recipient or the intended funeral recipient's guardian, agent, or next of kin, shall be in writing and, together with the requisite separate Statement of Funeral Goods and Services Selected required pursuant to N.J.A.C. 13:36-11.2, shall be provided to the purchaser at the time of entering into a prepaid funeral agreement. Every written prepaid funeral agreement shall, at a minimum, include the following information:
1. The name, title and license number of the provider;
2. The name, address, and telephone number of the provider's registered mortuary;
3. The name and address of the purchaser and, if different, the name of the intended funeral recipient;
4. The amount and method of the funding for the prepaid funeral agreement and a statement specifically indicating whether the prepaid funeral agreement is:
i. A guaranteed price agreement, including those goods and services guaranteed; or
ii. A non-guaranteed price agreement;
5. The name and location of the bank or pooled trust in which the prepaid moneys will be deposited if the funeral agreement is funded by a funeral trust;
6. If a funeral insurance policy, the policy number, if known, and the name and address of:
i. The insurance company;
ii. The beneficiary of the policy;
iii. The purchaser of the policy; and
iv. The intended funeral recipient, if different from the purchaser;
7. Notice that all funeral arrangements are revocable and that all funeral funding arrangements are severable from those funeral arrangements by the purchaser if alive, and if not, then by the intended funeral recipient where they are different persons. Upon the death of both the purchaser and the intended funeral recipient, the next of kin of the intended funeral recipient, in the order provided by N.J.S.A. 45:27-22, shall have the right to revoke the funeral arrangements and to sever the funeral funding arrangements from the funeral arrangements;
8. Notice that a prepaid funeral agreement may be funded by an irrevocable trust or irrevocable funeral insurance policy, consistent with the requirements of 13:36-11.6, when the intended funeral recipient is an aged, blind or disabled applicant for, or recipient of, the public assistance programs provided for by 44:7-85 et seq., or is a similarly situated individual who reasonably anticipates applying for such assistance within six months from the execution of the prepaid funeral agreement;
9. Notice that a prepaid funeral agreement funded by an irrevocable trust or an irrevocable funeral insurance policy, as provided in 13:36-11.6, shall be nonrefundable during the lifetime of the intended funeral recipient;
10. Notice that, if the intended funeral recipient's death occurs in a location other than that served by the provider, alternate funeral arrangements may be required unless otherwise specified;
11. Notice that a provider may substitute goods or services of equal quality, value and workmanship if those specified in the funeral agreement are unavailable at the time of need. Any resulting change in price will be reflected on a revised statement which shall be furnished at the time of need;
12. Notice that the intended funeral recipient shall automatically assume the same legal rights as the purchaser to administer a prepaid funeral arrangement if the purchaser predeceases the intended funeral recipient;
13. Notice that upon the death of the intended funeral recipient, the provider shall calculate the current retail prices of the prepaid funeral arrangements, and:
i. In the case of a non-guaranteed prepaid funeral agreement, if there are insufficient funds to pay for the current retail prices of the prepaid funeral goods and services requested, the provider shall consult with the appropriate representative of the intended funeral recipient for the supplementation of funds or modification of the funeral arrangements set forth in the agreement prior to the provider's performance under the agreement;
ii. In the case of any agreement funded through a revocable funeral trust, all surplus funds shall be paid to the purchaser, if alive, and if not, then to the personal representative of the estate of the deceased;
iii. In the case of an agreement funded through any funeral insurance policy, all surplus funds shall be paid to the named beneficiary of the funeral insurance policy;
14. Notice that if a prepaid funeral agreement is a guaranteed price agreement, the provider is liable for the price guarantee, and neither the issuer of a funeral insurance policy nor the trustee of a funeral trust is liable; and
15. Notice that the provider shall present a final and comprehensive bill to the legal representative of the deceased funeral recipient upon completion of performance under the prepaid funeral agreement.