30 Questions
According to the FTC rules, when should the Casket Price List be offered for review?
Before discussing caskets or alternative containers
According to the FTC rules, where should consumers first learn about casket prices?
By reviewing the Casket Price List:before or during arrangement meeting
According to the FTC rules, can the Casket Price List be taken back?
Yes
According to the FTC rules, what information must be listed on the Casket Price List?
All of the above
According to the FTC rules, which items should be listed on the General Price List (GPL)?
All of the above
According to the FTC rules, what should the prices for forwarding and receiving remains include?
The basic fee and any facilities or equipment fees
According to the FTC rules, which caskets need to be listed on the Casket Price List?
Only caskets that are usually offered for sale
According to the FTC rules, when should the Casket Price List be shown to consumers?
Before they are shown the caskets in the showroom
According to the FTC rules, what should the Casket Price List include for each casket and alternative container?
The retail price and any special ordering requirements
According to the FTC rules, what should the General Price List include for forwarding and receiving remains?
One price for each item and a description of all the services provided
Pre-funded contracts are often done in an effort to spend down for which qualification?
Medicaid qualification
What are the limits on how much money can be spent on a prepaid funeral contract for spend-down purposes?
The limits vary from state to state
What is a preneed contract?
A contract between a consumer and a funeral home to provide funeral goods and services in the future
What are the two types of preneed contracts based on payment guarantee?
Guaranteed and non-guaranteed
In a guaranteed preneed contract, what does the funeral home guarantee?
The consumer will not have to pay any additional money at-need
In a non-guaranteed preneed contract, what does the funeral home agree to do?
Apply the amount paid on the contract plus accruals to the cost at-need
What is the difference between revocable and irrevocable preneed contracts?
Revocable contracts can be canceled, while irrevocable contracts cannot
What are the two funding options for prepaid contracts?
Trust and insurance
Why are prepaid funds required to be placed in trust or escrow?
To prevent fraud and protect the consumer's funds
What is burial insurance?
Insurance that pays for burial goods and services
According to the FTC rules, when must a funeral home disclose that embalming is not required by law?
When requesting authorization to embalm
What is the triggering event for giving out the General Price List (GPL)?
A face-to-face meeting
When must a funeral home offer the General Price List (GPL)?
In all pre-need situations
What information must appear on the General Price List (GPL)?
All of the above
What must a funeral home do if state or local law requires embalming under certain circumstances?
Note it on the itemized Statement of Funeral Goods and Services Selected
What can a funeral home do if it is unable to contact a family member or other authorized person after exercising due diligence?
Exhaust all means to contact the family
What is the general knowledge about prepaid funeral contracts?
Preplanned arrangements in a pre-funded contract cannot be changed by family
When can a funeral home transfer funds paid in connection with a prepaid contract to a different funeral home?
When the prepaid contract is from another funeral home
Are funeral homes required to offer a General Price List (GPL) if they only request authorization to embalm during a removal?
No, they are not required to offer the GPL
Are funeral homes allowed to stop consumers from looking at the General Price List (GPL)?
No, they cannot stop consumers from looking at the GPL
Study Notes
FTC Rules and Funeral Services
- The Casket Price List should be offered for review when consumers inquired about casket prices or other funeral services.
General Price List (GPL)
- Consumers should first learn about prices from the GPL, which should be offered to them when they inquire about funeral arrangements or prices.
- The GPL cannot be taken back once it is given to the consumer.
Casket Price List
- The Casket Price List must be listed in a clear and concise manner, including the retail price of each casket and alternative container.
- The list must include all caskets and alternative containers offered by the funeral home, regardless of the material or type.
Prepaid Funeral Contracts
- Pre-funded contracts are often done to spend down for Medicaid qualification.
- There are limits on how much money can be spent on a prepaid funeral contract for spend-down purposes.
- A preneed contract is a contract between a funeral home and a consumer, where the consumer pays for funeral services in advance.
- There are two types of preneed contracts: guaranteed and non-guaranteed, based on payment guarantee.
- In a guaranteed preneed contract, the funeral home guarantees the price of the funeral service.
- In a non-guaranteed preneed contract, the funeral home agrees to provide the funeral service, but the price may vary.
- Revocable preneed contracts allow the consumer to cancel and receive a refund, while irrevocable contracts do not allow cancellation.
- There are two funding options for prepaid contracts: trust funding and insurance funding.
- Prepaid funds are required to be placed in trust or escrow to protect the consumer's investment.
Burial Insurance
- Burial insurance is a type of insurance policy that pays for funeral expenses.
Embalming and General Price List
- Funeral homes must disclose that embalming is not required by law, except in certain circumstances.
- The triggering event for giving out the GPL is when a consumer inquires about funeral arrangements or prices.
- Funeral homes must offer the GPL to consumers who inquire about funeral arrangements or prices.
- The GPL must include prices for funeral services, including forwarding and receiving remains, and must be presented in a clear and concise manner.
- If state or local law requires embalming under certain circumstances, the funeral home must comply.
- If a funeral home is unable to contact a family member or authorized person after exercising due diligence, they can proceed with the funeral arrangements.
Test your knowledge on the rules for distributing casket price lists according to the FTC. Learn about when and how casket prices should be disclosed to consumers, and the importance of providing a price list for review before showing the actual items.
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