LU 7 ML Pre-Need Funeral Contracts Quiz

Who regulates Pre-Need Funeral Contracts?

• Federal Trade Commission (FTC)

• Individual States

• Department of Health

• Social Security Administration

What is the difference between Revocable and Irrevocable Pre-Need Contracts?

• Revocable contracts cannot be canceled

• Irrevocable contracts can be refunded at any time

• Revocable contracts can be canceled and refunded

• Irrevocable contracts are not deposited in financial institutions

What happens to the funds in an Irrevocable Pre-Need Contract?

• They can be used for any purpose

• They must remain until the time of death

• They can be withdrawn anytime

• They are invested in stocks

What is refunded in some states when an Irrevocable Pre-Need contract is refunded?

• Only the original amount minus interest

• The full amount plus all interest

• Only the interest

• The full amount minus a service charge

What does the FTC NOT regulate?

• Pre-Need Funeral Contracts

• Consumer product safety

• Advertising practices

• Antitrust laws

What is the purpose of funds in an Irrevocable Pre-Need Contract?

• To pay for travel expenses

• To be used only for the funeral

• To invest in real estate

• To cover medical bills

What does the term "Pre-Need" refer to in funeral contracts?

• Contracts made after death

• Contracts made before death

• Contracts made during a funeral

• Contracts made for weddings

What is a key feature of a Revocable Pre-Need Contract?

• It cannot be changed

• It can be canceled at any time

• It is only for Medicaid recipients

• It is guaranteed by the state

What is the role of individual states in Pre-Need Funeral Contracts?

• They regulate the contracts

• They fund the contracts

• They ignore the contracts

• They guarantee the contracts

Which of the following is an example of Cash Advancements?

• Funeral home staff salaries

• Cemetery grave opening charges

• Funeral home maintenance

• Casket purchase