Louisiana Revised Statutes 37:862 – Preneed funeral contracts
Terms Used In Louisiana Revised Statutes 37:862
- Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
- Burial: means the act or process of disposing of a human body by depositing it in the earth, at sea, or by any other accepted disposition. See Louisiana Revised Statutes 37:831
- Buyer: means the person entering into a preneed funeral contract with a licensed funeral establishment. See Louisiana Revised Statutes 37:831
- Casket: means a rigid container which is designed for the encasement of human remains usually constructed of wood, metal, fiberglass, or other similar material and ornamented and lined with fabric, which may or may not be combustible, for transportation, or for other disposition. See Louisiana Revised Statutes 37:831
- Contract: A legal written agreement that becomes binding when signed.
- Financial institution: means a state or national bank, savings bank or savings association located in the state of Louisiana and whose deposits are insured by the Federal Deposit Insurance Corporation, including homesteads, building and loan associations and savings and loan associations. See Louisiana Revised Statutes 37:831
- Funeral: means the observances held for a dead person usually before burial or cremation. See Louisiana Revised Statutes 37:831
- Funeral director: means a person to whom a valid license has been issued by the board to perform the duties of funeral directing. See Louisiana Revised Statutes 37:831
- Funeral establishment: means any place or premises duly licensed by the board and devoted to or used in the care and preparation for disposition of the body of a deceased person or maintained or held out to the public by advertising or otherwise as the office or place for the practice of funeral directing. See Louisiana Revised Statutes 37:831
- Funeral goods and services: means any one or more of the following goods or services:
(a) Goods which are sold or offered for sale directly to the public for use in connection with funeral services. See Louisiana Revised Statutes 37:831
- Funeral merchandise: means : caskets, rental caskets, rental casket inserts, alternative containers, combo/shipping caskets, and other receptacles, excluding urns, where human remains are directly placed for disposition. See Louisiana Revised Statutes 37:831
- Funeral recipient: means the individual for whom funeral goods and services are to be provided under the terms of a preneed funeral contract. See Louisiana Revised Statutes 37:831
- Funeral trust account: means an account established pursuant to Louisiana Revised Statutes 37:831
- Guaranteed funeral goods and services: means funeral goods and services which a funeral establishment agrees to provide for a named funeral recipient upon death which are a specifically identified set of funeral goods and services designated as guaranteed and for which a funeral trust account has been established or a preneed insurance policy or annuity has been purchased or assigned to pay for those funeral goods and services, provided the buyer has fully funded a funeral trust account, or has fully paid for a preneed funeral policy or annuity, within a specified period of time after the preneed funeral contract is made and the funeral establishment has agreed to accept the funds available in the funeral trust account or preneed insurance policy or annuity during the term of the guarantee as payment in full for those funeral goods and services so that there will be no additional cost to the funeral recipient's family or his or her estate for those funeral goods and services. See Louisiana Revised Statutes 37:831
- Preneed funeral contract: means any written agreement between a buyer and a funeral establishment in which a funeral establishment agrees, prior to the death of a named funeral recipient, to furnish funeral goods and services for the funeral recipient upon death, and the buyer, pursuant to that agreement, transfers or tenders funds, or assigns an insurance policy or annuity to the funeral establishment for the purpose of paying all or part of the cost of those funeral goods and services at the time they are actually provided. See Louisiana Revised Statutes 37:831
- Preneed insurance policy or annuity: means any policy or contract of insurance issued by an insurance company in accordance with Title 22 of the Louisiana Revised Statutes of 1950, and used to fund a preneed funeral contract. See Louisiana Revised Statutes 37:831
- Refund designee: means the person designated in a preneed funeral contract by the buyer to receive any surplus of funds as provided in Louisiana Revised Statutes 37:831
- Trust account: A general term that covers all types of accounts in a trust department, such as estates, guardianships, and agencies. Source: OCC
- Urn: means a receptacle designed to permanently encase cremated human remains. See Louisiana Revised Statutes 37:831
A. The preneed funeral contract shall:
(1) Be in writing and printed in not less than ten point typeface.
(2) State the name, address and telephone number of the funeral establishment.
(3) State the name, address and telephone number of the buyer and the funeral recipient, if the funeral recipient is not the buyer.
(4) Contain or be accompanied by a statement of funeral goods and services which meets the requirements of the Federal Trade Commission Funeral Rule, 16 C.F.R. part 453, and LAC Title 46, Part XXXVII, §111. If a separate statement is used, it shall be attached to the preneed funeral contract and incorporated by reference into that contract.
(5) State whether the contract will be funded by a preneed insurance policy or annuity or a funeral trust account.
(6) If funded by a preneed insurance policy or annuity, state the name, home office address, and telephone number of the insurance company. A copy of the policy application with any medically related information expurgated shall be attached to and incorporated by reference into the contract and shall include a statement that the amount to be refunded if cancelled prior to the death of the funeral recipient will be determined by the provisions of the preneed insurance policy or annuity and a statement as to who is responsible for paying the income tax on any earnings generated by the preneed insurance policy or annuity.
(7) If funded by a deposit in a funeral trust account, provide the identity of the financial institution in which the money delivered to the funeral establishment by the buyer is to be deposited, and a statement as to who will be responsible for paying the income tax on any earnings generated by the funeral trust account.
(8) State the amount of the money initially deposited into a funeral trust account and give a description of any preneed insurance policy or annuity, used to fund the preneed funeral contract.
(9) State the effect on the contract benefits resulting from the failure to make any future payments required to fully fund the contract.
(10) Recite clearly and conspicuously whether the preneed funeral contract or the funding is revocable or irrevocable.
(11) Specifically identify which funeral goods and services are guaranteed funeral goods and services and state when the guarantee becomes effective if other than upon execution of the contract and the term of the guarantee if the term is other than for the life of the funeral recipient.
(12) State that the price to be paid for any funeral goods and services not designated as guaranteed will be the prevailing retail prices as listed on the general price list and casket price list of the funeral establishment at the time of the death of the funeral recipient.
(13) Include a description of any casket, alternative container or other funeral merchandise, burial vault or urn included in the preneed funeral contract. The description of a casket shall include the exterior color, the material the casket is constructed of, including but not limited to, the type and thickness of metal expressed in gauge or ounces per square foot, type and color of wood or other material and type and color of interior fabric; with respect to an urn, the description shall be of the material of which it is constructed.
(14) Contain the signature of the buyer and the date the buyer signed the contract.
(15) Contain the signature of a funeral director authorized by the funeral establishment to enter into a preneed funeral contract, and the date signed.
(16) Clearly and conspicuously state that unless waived as provided in La. Rev. Stat. 37:864(B), the preneed funeral contract may be cancelled and the buyer receive a full refund of all monies delivered and a return and cancellation of the assignment of all policies transferred or assigned in connection therewith anytime within ten days after the buyer signed the contract.
(17) Include the name, address, and telephone number of any refund designee designated by the buyer.
B. Until signed by a funeral director authorized by the funeral establishment, the contract signed by the buyer shall be considered as an offer to purchase. Upon acceptance of the offer, signified by the signature of its duly authorized funeral director, the funeral establishment shall furnish a complete, fully executed copy of the preneed funeral contract to the buyer.
Acts 2008, No. 799, §1, eff. Jan. 1, 2009.