OCCUPATIONS AND PROFESSIONS
EMBALMERS AND FUNERAL DIRECTORS
Prearranged Funerals or Burial Plans
325:46-a Prearranged Funeral Contracts; Contents; Procedures.
I. Any prearranged funeral contract that involves the payment of money to a trust account or the purchase or assignment of an insurance policy or annuity shall be in writing and shall include all of the following information:
(a)(1) The name, address, and phone number of the seller and the name and address of the purchaser of the contract.
(2) If the contract beneficiary is someone other than the purchaser of the contract, the name and address of the contract beneficiary.
(3) If the contract involves the payment of money but not the purchase or assignment of an insurance policy or annuity, the social security number of the purchaser of the contract or if the contract beneficiary is someone other than the purchaser, the social security number of the contract beneficiary.
(b) A statement of the funeral goods and funeral services purchased, which may be made by attaching a copy of the completed statement of funeral goods and services selected to the prearranged funeral contract.
(c) A disclosure explaining the form in which the purchase price shall be paid and, if the price is to be paid in installments, a disclosure to the purchaser regarding what constitutes a default under the prearranged funeral contract and the consequences of the default.
(d) A disclosure informing the purchaser whether the contract is either a guaranteed prearranged funeral contract or a nonguaranteed prearranged funeral contract, and, if the contract is guaranteed only in part, a disclosure specifying the funeral goods or funeral services included in the guarantee.
(e) If the prearranged funeral contract is a guaranteed contract, a disclosure that the seller, in exchange for all of the proceeds of the trust, insurance policy, or annuity, shall provide the funeral goods and funeral services set forth in the prearranged funeral contract without regard to the actual cost of such funeral goods and funeral services prevailing at the time of performance.
(f) If the prearranged funeral contract is a nonguaranteed contract, a disclosure that:
(1) The proceeds of the trust, insurance policy, or annuity shall be applied to the retail prices in effect at the time of the funeral for the funeral goods and funeral services set forth in the contract;
(2) Any excess funds remaining after all expenses for the funeral have been paid shall be paid to the estate of the decedent or the beneficiary named in the life insurance policy if the prearranged funeral contract is funded by a life insurance policy; and
(3) In the event of an insufficiency in funds, the seller shall not be required to perform until payment arrangements satisfactory to the seller have been made.
(g) A disclosure that:
(1) The purchaser has the right to make the contract irrevocable and that if the prearranged funeral contract is irrevocable, the purchaser does not have a right to revoke the contract.
(2) The purchaser has the right to make the contract revocable, and that the purchaser has the right to revoke a revocable prearranged funeral contract.
(h) A disclosure informing the purchaser of the initial right to cancel the prearranged funeral contract within 10 days. Any purchaser, on initially entering into a prearranged funeral contract may, within 10 days after entering into that contract, rescind the contract and request and receive from the seller of the contract all payments made under the contract.
(i) A disclosure that the seller may substitute funeral goods or funeral services of equal quality, value, and workmanship if those specified in the prearranged funeral contract are unavailable at the time of need.
(j) A disclosure that any purchaser of funeral goods and funeral services is entitled to receive price information prior to making that purchase in accordance with the Federal Trade Commission's funeral industry practices revised rule, 16 C.F.R. part 453.
II. If the purchaser of a prearranged funeral contract that is revocable elects to cancel the contract, the purchaser shall provide a written notice to the seller of the contract and the trustee of the prearranged funeral contract trust stating that the purchaser intends to cancel the contract. Fifteen days after the purchaser provides that notice to the seller and trustee, the purchaser may cancel the contract.
III. The purchaser of a prearranged funeral contract that is irrevocable may transfer the prearranged funeral contract to a successor seller. A purchaser who elects to make such a transfer shall provide a written notice of the designation of a successor seller to the trustee and the original seller. Within 15 days after receiving the written notice of the new designation from the purchaser, the trustee shall list the successor seller as the seller of the prearranged funeral contract and the original seller shall relinquish and transfer all rights under the prearranged funeral contract to the successor seller. The trustee shall confirm the transfer by providing written notice of the transfer to the original seller, the successor seller, and the purchaser.
IV. If a seller of a prearranged funeral contract elects to transfer a prearranged funeral contract trust from the original institution to a different institution, the trustee of the original trust shall notify the purchaser of the prearranged funeral contract of that transfer in writing within 30 days after the transfer occurred and shall provide the purchaser with the name of and the contact information for the institution where the new trust is maintained. Upon receipt of the trust, the trustee of the transferred trust shall notify the purchaser of the receipt of the trusts.
V. If a seller receives a notice that the contract beneficiary has died and that funeral goods and funeral services have been provided by a provider other than the seller, except as otherwise specified in this section, the seller shall direct the trustee, within 30 days after receiving that notice, to pay to the contract beneficiary all funds held by the trustee, less any fees charged, distributions paid, and expenses incurred by the trustee.
VI. In the event that the balance in the funeral trust account or insurance policy on the date of the trust/insurance policy beneficiary's death exceeds the price of the funeral goods and/or services provided, the excess shall be refunded to the estate of the trust beneficiary. In such event, the amount refunded may be subject to claims of the state of New Hampshire or the United States.
Source. 2011, 120:1, eff. Jan. 1, 2012.