Week 4 Preneed

Question 1

Funeral service cases where funeral arrangements are made immediately after a death has occurred

Answer 1

at-need cases

Question 2

means the named individual for whom a preneed agreement is purchased; may also be the purchaser

Answer 2

beneficiary

Question 3

in funeral service, a vehicle used to hold monies paid on prefunded contracts and beyond the control of the funeral director

Answer 3

escrow account

Question 4

means an individual in whom another has placed the utmost trust and confidence to manage and protect property or money; the relationship wherein one person has an obligation to act for another’s benefit

Answer 4

fiduciary

Question 5

an agreement whereby the funeral home promises that the services and merchandise will be provided at the time of need (in the future) for a sum not exceeding the original amount of the aforementioned contract plus any accruals, regardless of the current prices associated with providing the services and merchandise at the time of the funeral

Answer 5

guaranteed contract

Question 6

an agreement for future funeral services which cannot be terminated or canceled prior to the death of the beneficiary

Answer 6

irrevocable contract

Question 7

agreement in which the funeral home promises to apply the amount pre-paid plus any accruals to the balance due. However, the cost of the funeral will be based upon the current price for the services and merchandise at the time the services are provided

Answer 7

non-guaranteed contract

Question 8

funeral arrangements made in advance of need that include provisions for funding or prepayment

Answer 8

pre-funded funeral arrangements

Question 9

funeral service cases where funeral arrangements are made prior to a death occurring, in preparation for use in the future

Answer 9

preneed cases

Question 10

funeral arrangements made in advance of need that do not include provisions for funding or prepayment

Answer 10

pre-planned funeral arrangements

Question 11

means the named individual paying for and purchasing a preneed account; may also be the beneficiary

Answer 11

purchaser

Question 12

agreement which may be terminated by the purchaser at any time prior to the death of the beneficiary with a refund of the monies paid on the contract as prescribed by state law

Answer 12

revocable contract

Question 13

account established by one individual to be held for the benefit of another (as a method of payment of funeral expenses); creates a fiduciary responsibility. Money paid to a funeral home for future services is placed in an account with the funeral home for the benefit of another

Answer 13

trust account

Question 14

one who holds title to property or another position of trust to a beneficiary

Answer 14

trustee

Question 15

a legally enforceable agreement

Answer 15

contract

Question 16

agreements which are incident to providing services and merchandise other than by the funeral establishment, i.e. caskets, vaults, urns, cremation services, etc.

Answer 16

third party contracts