03/22/2011

SPECIAL ALERT ON PRENEED ANNUAL REPORTS

By T. Scott Gilligan, OFDA General Counsel

SPECIAL ALERT ON PRENEED ANNUAL REPORTS

            Several OFDA members have questioned whether preneed contracts that are funded by the assignment of an existing life insurance policy need to be included in the preneed annual report that is to be submitted to the Ohio Board of Embalmers and Funeral Directors at the end of this month. 

            Jennifer Baugess of the Board’s office confirmed that any preneed contract in which a Statement of Funeral Goods and Services Selected has been filled out and which is funded by the assignment of an existing insurance policy must be included in the annual report.  If a family has merely assigned an insurance policy to the funeral home without making the selection of funeral goods and services or filling out the Statement of Funeral Goods and Services Selected, the contract does not need to be listed in the annual report. 

Therefore, the determination of whether a funeral home includes in the annual report a preneed arrangement funded by the assignment of an insurance policy should be whether the funeral home has filled out a Statement of Funeral Goods and Services Selected.  If it has, then the preneed contract should be included in the annual report.

            OFDA members who have questions regarding this matter may contact Scott Gilligan at (513) 871-6332.