Dear Counselor

Under Missouri’s old preneed law, I was not required to register as a preneed seller because the only preneed I sold were joint account contracts. In the future, all I plan to sell are joint account contracts. Do I have to be licensed under the new law as a preneed seller?

Yes. If you sell any form of preneed contract after August 28, 2009, even if it is only joint account contracts, you have to be licensed as a preneed seller.

Many funeral homes have stated that they do not plan to sell preneed in the future, and question whether they must have a preneed seller license. At its last meeting (December 9, 2009), the Board took the position that a funeral home would not have to obtain a preneed seller’s license if the only outstanding contracts it has are joint account contracts sold prior to August 28th. However, if the funeral home has any outstanding contracts funded by either insurance or trust, the Board position is that the funeral home must obtain a preneed seller license unless it ceases to do business (as a seller) and transfers the contracts (and trust/insurance) to another seller. Under that situation, the funeral home must then comply with the requirements of Section 436.500.

If you have only joint account contracts sold prior to August 28^th, and want to avoid the preneed seller requirements, you can use a third party seller (such as the MFT). If this situation applies to a funeral home that has already applied for a preneed seller license, it might be able to withdraw the application (and fee). However, you would still be required to obtain a provider license. The same is true even if you never sell another preneed contract. As a licensed provider, you will be required to report the joint account contracts sold prior to August 28^th.

Bill Stalter answers our questions for educational purposes only. It is The Dead Beat’s intent to give the reader general information about legal issues, not to provide legal advice. If a reader needs legal advice, he or she should hire an attorney. Reading The Dead Beat should not be used as a substitute for legal advice from an attorney. When Bill provides legal advice he does so for Stalter Legal Services in Overland Park, Kansas. Bill also provides consulting services through Preneed Resource Consultants, which can be found at www.preneedresource.com.