436.425. Contract form, requirements--voidability of contract--waiver of contract benefits for public assistance recipients.
Contract form, requirements--voidability of contract--waiver ofcontract benefits for public assistance recipients.
436.425. 1. All preneed contracts shall be sequentially numbered andin writing and in a font type and size that are easily read, and shallclearly and conspicuously:
(1) Include the name, address and phone number of the purchaser,beneficiary, provider and seller;
(2) Identify the name, address, phone and license number of theprovider and the seller;
(3) Set out in detail the disposition, funeral and burial servicesand facilities, and merchandise requested;
(4) Identify whether the contract is trust funded, insurance funded,or joint account funded;
(5) Include notice that the cancellation of the contract shall notcancel any life insurance funding the contract, and that insurancecancellation is required to be made in writing to the insurer;
(6) Include notice that the purchaser will only receive the cashsurrender value of any insurance policy funding the contract if cancelledafter a designated time, which may be less than the amount paid into thepolicy;
(7) Include notice that the board provides by rule that the purchaserhas the right to transfer the provider designation to another provider;
(8) Prominently identify whether the contract is revocable orirrevocable;
(9) Set forth the terms for cancellation by the purchaser or by theseller;
(10) Identify any preneed trust or joint account into which contractpayments shall be deposited, including the name and address of thecorresponding trustee or financial institution;
(11) Include the name, address and phone number of any insurancecompany issuing an insurance policy used to fund the preneed contract;
(12) Include the name and signature of the purchaser, the provider orits authorized representative, the preneed agent responsible for the saleof the contract, and the seller or its authorized representative;
(13) Prominently identify whether the contract is a guaranteed ornonguaranteed contract;
(14) Include any applicable consumer disclosures required by theboard by rule; and
(15) Include a disclosure on all guaranteed installment paymentcontracts informing the purchaser what will take place in the event thebeneficiary dies before all installments have been paid, including anexplanation of what will be owed by the purchaser for the funeral servicesin such an event;
(16) Comply with the provisions of sections 436.400 to 436.520 or anyrule promulgated thereunder.
2. A preneed contract shall be voidable and unenforceable at theoption of the purchaser, or the purchaser's legal representative, if it isdetermined in a court of competent jurisdiction that the contract is not incompliance with this section or not issued by a seller licensed underchapter 333, RSMo, or if the provider has not consented to serve asprovider at the time the contract was executed. Upon exercising the optionby written notice to the seller and provider, all payments made under suchcontract shall be recoverable by the purchaser, or the purchaser's legalrepresentative, from the contract seller, trustee, or other payee thereof.
3. A beneficiary who seeks to become eligible to receive publicassistance under chapter 208, RSMo, or any other applicable state orfederal law may irrevocably waive their rights to receive any refund orpayment of any moneys from the funds or insurance used to fund theirpreneed contract. Such irrevocable waiver may be executed at any time andshall be in writing, signed and dated by the beneficiary and shall bedelivered to the seller and any applicable trustee, financial institutionor insurance company.
4. All purchasers shall have the right as provided in this chapter tocancel or rescind a revocable preneed contract and transfer any preneedcontract with or without cause.
5. A preneed contract, shall not be changed from a trust-funded,insurance-funded, or joint account-funded preneed contract without thewritten consent of the purchaser.
(L. 2009 S.B. 1)