W. Va. Code R. § 142-8-10

Current through Register Vol. XLI, No. 25, June 21, 2024

Section 142-8-10 - Default By The Contract Buyer

10.1. A preneed funeral contract and any trust associated therewith may be terminated by the contract seller only upon default by the buyer. If a contract buyer is in default for more than one hundred eighty (180) days with respect to any payment or installment due on or pursuant to the contract, the seller may, on ten (10) days' prior written notice, cancel the contract. Upon cancellation, the seller must refund all funds in the trust fund, including monies paid for items which are excluded from the definitions of burial goods, funeral goods and services and which are not subject to the buyer's right of cancellation under W. Va. Code '47-14-6: Provided, That the seller may retain up to ten percent (10%) of the monies paid as liquidated damages if such a deduction was not previously made as provided in W. Va. Code '47-14-5 and section 9.1.5 of this rule.

10.2. If payment for a preneed funeral contract is not complete at the time of the contract beneficiary's death and the seller has not cancelled the contract as aforesaid, or if a life insurance or annuity contract intended to fund the preneed funeral contract has lapsed, the heirs or personal representative of the beneficiary may pay the balance remaining on the preneed funeral contract and obtain performance as provided.