N.J. Admin. Code § 13:36-11.6

Current through Register Vol. 56, No. 21, November 4, 2024

Section 13:36-11.6 - Irrevocable funeral agreements

(a) Notwithstanding the provisions of N.J.A.C. 13:36-11.3(a)8, and in accordance with N.J.S.A. 2A:102-16.1, a prepaid funeral agreement may [page=892] provide that its funding, whether in the form of a funeral trust or a funeral insurance policy, is irrevocable during the lifetime of the intended funeral recipient, provided that the intended funeral recipient is:

1. An aged, blind, or disabled applicant for, or recipient of, benefits pursuant to the Supplemental Security Income program (SSI) (N.J.S.A. 44:7-85et seq.), [or] any Medicaid program (N.J.S.A. 30:4D-1et seq.), or General Assistance, or successor program(s); or

2. An aged, blind, or disabled person who reasonably anticipates applying for, or receiving, the benefits provided by SSI, [or] Medicaid, or General Assistance, or successor program(s) within six months of the date of the signing of the prepaid funeral agreement.

(b) No provider shall establish an irrevocable prepaid funeral agreement knowing that the intended funeral recipient:

1. Is not, or shall not, become eligible to receive the public assistance referred to in (a) above; or

2. Does not intend to apply for such public assistance.

(c) No provider shall establish an irrevocable prepaid funeral agreement knowing or intending that the personal representative, estate or beneficiary of an intended funeral recipient shall receive a refund at the time of need, except that this prohibition does not include the expectation of an accumulation of interest or earnings on the corpus of the trust or insurance policy.

(d) No provider shall knowingly solicit or induce any person to execute an irrevocable prepaid funeral agreement pursuant to this section with the intent to collect or charge more than the fair market value of the funeral goods or services solicited.

(e) A provider shall immediately notify in writing the appropriate social services agency or agencies if at, or subsequent to, the time of need the personal representative or estate of a funeral recipient, or if known by the provider, the beneficiary, in the case of a funeral insurance policy, receives a refund from an irrevocable prepaid funeral agreement.

N.J. Admin. Code § 13:36-11.6

Amended by 51 N.J.R. 880(b), effective 6/3/2019