Sec. 42-200. Funeral service contracts: Definitions; requirements. Funeral service establishment to maintain copies of contracts. Notification to purchaser of transfer of more than fifty per cent owne
Sec. 42-200. Funeral service contracts: Definitions; requirements. Funeral
service establishment to maintain copies of contracts. Notification to purchaser of
transfer of more than fifty per cent ownership or of closure. (a) For the purposes of
this section and sections 42-201 to 42-206c, inclusive, "funeral service contract" means
a contract which requires the payment of money or the delivery of securities in exchange
for the final disposition of a dead human body, including funeral, burial or other services,
or the furnishing of personal property or funeral merchandise in connection with any
such disposition, wherein the use or delivery of such services, property or merchandise
is not required immediately, "beneficiary" means the person for whom the goods or
services purchased in a funeral service contract are to be provided, and "purchaser"
means the person who signs the funeral service contract.
(b) A funeral service contract shall be in writing and shall contain the following:
(1) The name, address, telephone number and Social Security number of the beneficiary and the purchaser;
(2) The name, address, telephone number and license number of the funeral director
for the funeral service establishment providing the goods or services;
(3) A list of the selected goods or services, if any;
(4) The amount of funds paid or to be paid by the purchaser for such contract, the
method of payment and a description of how such funds will be invested and how such
investments are limited to those authorized pursuant to subsection (c) of section 42-202;
(5) A description of any price guarantees by the funeral service establishment or,
if there are no such guarantees, a specific statement that the contract contains no guarantees on the price of the goods or services contained in the contract;
(6) The name and address of the escrow agent designated to hold the prepaid funeral
services funds;
(7) A written representation, in clear and conspicuous type, that the purchaser
should receive a notice from the escrow agent acknowledging receipt of the initial deposit not later than twenty-five days after receipt of such deposit by a licensed funeral
director;
(8) A description of any fees to be paid from the escrow account to the escrow agent
or any third party provider;
(9) A description of the ability of the purchaser or the beneficiary to cancel a revocable funeral service contract and the effect of cancelling such contract;
(10) For irrevocable contracts, a description of the ability of the beneficiary to transfer such contract to another funeral home; and
(11) The signature of the purchaser or authorized representative and the licensed
funeral director of the funeral service establishment.
(c) A funeral service establishment shall maintain a copy of all funeral service contracts entered into or assigned to such establishment and a list of each escrow account
established pursuant to such contracts. Such list shall include the name and address of
the escrow agent, the amount of funds deposited with such agent and the name and
address of the purchaser of the funeral services contract. Such contracts shall be maintained by the funeral service establishment for a period of six years after the completion
of the contracted services. Such establishment shall disclose such information, upon
request, to the Commissioner of Public Health, the Commissioner of Consumer Protection or the Attorney General.
(d) A funeral service establishment shall notify the purchaser of each prepaid funeral
contract with such establishment not later than ten days after any transfer of more than
a fifty per cent ownership share of such establishment to another person or of the closure
of such establishment.
(P.A. 85-376, S. 1; P.A. 05-248, S. 7; P.A. 06-87, S. 1.)
History: P.A. 05-248 replaced reference to Sec. 42-206 with Sec. 42-206c and made a technical change; P.A. 06-87 designated existing provisions as Subsec. (a) and defined "beneficiary" and "purchaser", and added Subsec. (b) re
requirements for funeral service contracts, Subsec. (c) requiring funeral service establishments to maintain copies of funeral
service contracts and Subsec. (d) requiring notification of purchasers re transfer of more than 50% ownership share or
closure of establishment.