436.457. Seller's right to cancel, when, procedure.
Seller's right to cancel, when, procedure.
436.457. 1. A seller shall have the right to cancel a trust-fundedor joint-account funded preneed contract if the purchaser is in default ofany installment payment for over sixty days.
2. Prior to cancelling the contract, the seller shall notify thepurchaser and provider in writing that the contract shall be cancelled ifpayment is not received within thirty days of the postmarked date of thenotice. The notice shall include the amount of payments due, the date thepayment is due, and the date of cancellation.
3. If the purchaser fails to remit the payments due within thirtydays of the postmarked date of the notice, then the seller, at its option,may either cancel the contract or may continue the contract as anonguaranteed contract where the purchaser will receive full credit for allpayments the purchaser has made into the trust towards the cost of thebeneficiary's funeral service or merchandise from the provider.
4. Upon cancellation by the seller under this section, eighty-fivepercent of the contract payments shall be refunded to the purchaser. Allremaining funds shall be distributed to the seller.
(L. 2009 S.B. 1)