(1) Upon receipt of written authorization to
do so from the Buyer of a Pre-need Funeral Contract, or the Buyer's legal
representative, a Licensed Funeral Establishment shall transfer or assign that
Pre-need Funeral Contract to another Licensed Funeral Establishment designated
by that Buyer or legal representative, provided that the funeral establishment
to whom the contract is to be transferred or assigned has indicated in writing
that it will agree to honor that contract. The terms of the contract shall not
be modified at the time of the transfer, but may be amended by means of a
written agreement between the Buyer and the transferee funeral establishment
after the transfer of the contract and all funds connected with that contract
has been completed. All such amendments shall be subject to the limitations on
amendments of Pre-need Funeral Contracts, as set forth in
239 CMR
4.04.
(2) In the event of any transfer or
assignment of a Pre-need Funeral Contract pursuant to 239 CMR 4.06(1):
(a) If any funds received by the transferor
funeral establishment from the Buyer in connection with that Pre-need Funeral
Contract are being held in a Funeral Trust Account pursuant to
239 CMR
4.09, all such funds shall be transferred to
the transferee funeral establishment within ten business days, as provided in
239 CMR
4.09(5). The transferee
funeral establishment shall furnish written confirmation to the Buyer, and the
Beneficiary (if different), that these funds have been received by the
transferee funeral establishment and deposited in a Funeral Trust Account which
meets the requirements of
239 CMR
4.09 not later than 30 days after the
transfer or assignment of the Pre-need Funeral Contract occurs. The transferee
funeral establishment shall notify the Buyer, in writing, of the identity and
location of the banking institution in which the funds were deposited and which
will serve as the Trustee of the new Funeral Trust Account.
(b) If any funds in connection with that
Pre-need Funeral Contract were used to purchase a Pre-need Insurance Policy or
Annuity pursuant to
239 CMR
4.10, the transferor funeral establishment
shall send a copy of the Buyer's written authorization for transfer of that
Pre-need Funeral Contract to the insurance company which issued the Pre-need
Insurance Policy or Annuity and request that the insurance company take all
necessary and appropriate steps to modify the insurance policy so that the
transferee funeral establishment may receive payment for any funeral goods and
services it provides to the Beneficiary of that policy. The transferor funeral
establishment shall furnish written confirmation to the Buyer, and the
Beneficiary (if different), that the request for transfer of the Pre-need
Funeral Contract and appropriate modification of the insurance policy have been
sent to the insurance company which issued the Pre-need Insurance Policy or
Annuity not later than 30 days after the transfer or assignment of the Pre-need
Funeral Contract occurs.
