32-1391.02. Prearranged funeral agreements; restrictions on sales
A. A person shall not enter into a prearranged funeral agreement other than in accordance with the provisions of this article and the rules adopted pursuant to this article.
B. The board shall adopt rules that require every funeral establishment that sells prearranged funeral agreements to give a standardized written or printed price list for retention to each person who personally inquires about prearranged funeral agreements. On beginning a discussion regarding prearranged funeral agreements, a registered prearranged funeral salesperson or a licensed insurance producer who a funeral establishment employs or contracts with to sell prearranged funeral agreements funded by insurance shall present the price list to the consumer. The list shall be presented in an accurate and readable manner in order to facilitate price comparisons by consumers.
C. A prearranged funeral agreement shall be funded by insurance or trust. A funeral establishment or an agent or employee of a funeral establishment shall not accept payment for or agree to enter into any prearranged funeral agreement unless the name of a licensed funeral establishment appears on the statement of goods and services used in connection with the agreement and one of the following is true:
1. If the agreement is a prearranged funeral agreement funded by insurance, the funeral establishment employs or contracts with insurance producers who are licensed pursuant to title 20 to sell the funeral agreement.
2. If the agreement is a prearranged funeral agreement funded by trust, the establishment has been issued a prearranged funeral sales endorsement to its license and the salesperson has been issued a prearranged funeral salesperson registration by the board allowing the establishment and the person to sell prearranged funeral agreements funded by trust.
3. If the agreement is a payable on death account, the account is not under the control of the establishment. A funeral establishment or an agent or employee of a funeral establishment shall not accept a deposit for a payable on death account.
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