Missouri Laws 436.405 – Definitions
1. As used in sections 436.400 to 436.520, unless the context otherwise requires, the following terms shall mean:
(1) “Beneficiary”, the individual who is to be the subject of the disposition or who will receive funeral services, facilities, or merchandise described in a preneed contract;
Terms Used In Missouri Laws 436.405
- 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.
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- Contract: A legal written agreement that becomes binding when signed.
- Fair market value: The price at which an asset would change hands in a transaction between a willing, informed buyer and a willing, informed seller.
- following: when used by way of reference to any section of the statutes, mean the section next preceding or next following that in which the reference is made, unless some other section is expressly designated in the reference. See Missouri Laws 1.020
- person: may extend and be applied to bodies politic and corporate, and to partnerships and other unincorporated associations. See Missouri Laws 1.020
- Trustee: A person or institution holding and administering property in trust.
(2) “Board”, the board of embalmers and funeral directors;
(3) “Guaranteed contract”, a preneed contract in which the seller promises, assures, or guarantees to the purchaser that all or any portion of the costs for the disposition, services, facilities, or merchandise identified in a preneed contract will be no greater than the amount designated in the contract upon the preneed beneficiary‘s death or that such costs will be otherwise limited or restricted;
(4) “Insurance-funded preneed contract”, a preneed contract which is designated to be funded by payments or proceeds from an insurance policy or a deferred annuity contract that is not classified as a variable annuity and has death benefit proceeds that are never less than the sum of premiums paid;
(5) “Joint account-funded preneed contract”, a preneed contract which designates that payments for the preneed contract made by or on behalf of the purchaser will be deposited and maintained in a joint account in the names of the purchaser and seller, as provided in this chapter;
(6) “Market value”, a fair market value:
(a) As to cash, the amount thereof;
(b) As to a security as of any date, the price for the security as of that date obtained from a generally recognized source, or to the extent no generally recognized source exists, the price to sell the security in an orderly transaction between unrelated market participants at the measurement date; and
(c) As to any other asset, the price to sell the asset in an orderly transaction between unrelated market participants at the measurement date consistent with statements of financial accounting standards;
(7) “Nonguaranteed contract”, a preneed contract in which the seller does not promise, assure, or guarantee that all or any portion of the costs for the disposition, facilities, service, or merchandise identified in a preneed contract will be limited to the amount designated in the contract upon the preneed beneficiary’s death or that such costs will be otherwise limited or restricted;
(8) “Preneed contract”, any contract or other arrangement which provides for the final disposition in Missouri of a dead human body, funeral or burial services or facilities, or funeral merchandise, where such disposition, services, facilities, or merchandise are not immediately required. Such contracts include, but are not limited to, agreements providing for a membership fee or any other fee for the purpose of furnishing final disposition, funeral or burial services or facilities, or funeral merchandise at a discount or at a future date;
(9) “Preneed trust”, a trust to receive deposits of, administer, and disburse payments received under preneed contracts, together with income thereon;
(10) “Purchaser”, the person who is obligated to pay under a preneed contract;
(11) “Trustee”, the trustee of a preneed trust, including successor trustees;
(12) “Trust-funded preneed contract”, a preneed contract which provides that payments for the preneed contract shall be deposited and maintained in trust.
2. All terms defined in chapter 333 shall be deemed to have the same meaning when used in sections 436.400 to 436.520.