The Board of Directors of the Assn of Independent Funeral Homes of Virginia is sympathetic to the family’s situation which resulted in their filing this petition.  The petition was generated by a family which indicated their grandmother had made preneed arrangements with a funeral home which closed prior to the passing of their grandmother and that subsequently the funds were not available.  According to public records, that same establishment appears to have received disciplinary sanctions by the licensing Board.   We note the petition provides no statement or evidence of a preneed contract ever being purchased.  If so, a copy of the trusting documents would have been provided and serve as a receipt.  It is incumbent on the consumer then to provide a family member with a copy of that document and maintain that information with documents such as wills and property titles.  Presumably, the family contacted the prominent insurance carriers which trust these contracts and was unable to document a preneed contract had indeed been paid.  Additionally, a review of the deceased financial records or credit cards would have listed to whom the payment was made, if at all.  It may be that the deceased made preneed arrangements but did not enter into a preneed contract agreement and as such, not paid in advance.

We note funeral establishments are inspected routinely by the State Board, and include extensive review of requirements for processing and maintaining preneed contracts and records.  Failure to comply should and does result in sanction against both the establishment and the funeral service licensee.  Such inspections by the State Board review for compliance that a copy of preneed contracts is provided upon payment, noting payment received, and the insurance carrier to contact should financial questions arise.

Had a copy of the executed preneed contract agreement been available, by law and regulation, it would have been transferable to another funeral home, and funds available for funeral services.

IFHV opposes the petition in that (1) inspection of preneed process and records at funeral homes already exists, (2) additional regulations on this issue are unnecessary and will increase the cost of funeral services to consumers, (3) the Courts are the proper authority to address allegations of financial impropriety, and (4) it is incumbent on the consumer purchasing such agreements to store such documents in appropriate places and to advise family members of the location of such.  Most important, there is no justification for additional regulations on this issue in that in that paid preneed contracts “trusted” or insured by a licensed and regulated insurance carrier are transferable to another funeral home.

We do recommend the Board consider allowing the State Board staff be permitted to suggest consumers contact one of the three Virginia funeral associations which may be in a position to provide some direction on issues which may arise.