Current through Register Vol. XLI, No. 25, June 21, 2024
Section 142-8-8 - Provision Of Goods And Services Under Preneed Funeral Contract At Death Of Contract Beneficiary8.1. To the extent that a person who is a provider, contract seller or one who makes a preneed funeral contract available, based on price lists in effect at the contract beneficiary's death, would charge more than the contract price for the goods and services provided, such person may have and use so much of the principal and interest of any trust fund as may be necessary to defray the cost over the contract price. In no event, however, unless the contract has been cancelled as provided in section 10 of this rule, shall such person fail or refuse to make available goods and services of the type for which the contract provides even though the costs exceed the value of the trust fund or other proceeds available for such purpose. The goods and services shall be provided for the amount available in the trust or other proceeds in such a situation. Substitution of goods of equivalent quality and value may be made only after notice to the contract buyer or the next of kin of the beneficiary and only when it can be demonstrated that the goods described in the contract are unavailable.8.2. On or before the first day of January and the first day of July of each year, the trustee and the provider, contract seller or person who made the preneed funeral contract available shall file a report with the Department, describing the goods and services provided after the death of any contract beneficiary during the previous six (6) month period, accounting for all expenditures and disbursements from the trust or other proceeds, justifying by reference to current price lists any increase over the original contract cost and explaining any substitution of goods or services.8.3. In the event that the contract buyer was not the contract beneficiary, all trust monies or other proceeds not properly applied toward the costs of providing the goods and services shall be returned to the contract buyer, his estate or designee. If the contract beneficiary was also the contract buyer, any such excess shall be paid to the contract beneficiary's estate or designee.8.4. It is a purpose of the Act and this rule to enable the buyer of a preneed funeral contract to secure a fixed price for specific funeral goods and services or burial goods, subject only to increases authorized pursuant to section 8.1 of this rule. No provider, contract seller or person who makes a preneed funeral contract available may enter a preneed funeral contract which does not establish a fixed price for specific goods and services unless the buyer has been fully informed of the rights guaranteed by such a contract and such buyer has declined to specify goods, services and prices.