(1)
Each Licensed Funeral Establishment shall maintain a separate, legible written
record for each Pre-need Funeral Contract to which that funeral establishment
is a party. Said records shall be maintained at all times on the premises of
that funeral establishment, or on the premises of another
specifically-identified Licensed Funeral Establishment within the Commonwealth
which is owned and operated by the same proprietor, corporation, partnership,
association, limited liability company, limited liability partnership or other
business entity. At a minimum, such records shall contain all of the following
information:
(a) A fully-executed copy of the
Pre-need Funeral Contract;
(b) A
fully-executed copy of each amendment or modification of the terms of that
Pre-need Funeral Contract;
(c) In
the case of any Pre-need Funeral Contract which was transferred to another
funeral establishment after its original execution, the name and address of the
funeral establishment to which that Pre-need Funeral Contract was transferred
and written documentation that the Buyer and/or Beneficiary has authorized that
transfer;
(d) In the case of any
Pre-need Funeral Contract which has been performed (i.e., the
funeral goods and services specified in that contract have been provided to the
Beneficiary of that contract), a copy of the death certificate for the
Beneficiary of that Pre-need Funeral Contract and written documentation that
the funeral goods and services specified in that contract were
provided;
(e) Where the funding
source for the funeral goods and services to be provided pursuant to that
Pre-need Funeral Contract is a Funeral Trust Account:
1. The name, address, date of birth and
social security number of the named trust Beneficiary;
2. Copies of bank statements and deposit
slips from the bank or financial institution which is holding the funds
deposited in the Funeral Trust Account which show the date on which the funeral
trust was originally established, the amount of money originally deposited in
the Funeral Trust Account at the time the Funeral Trust Account was originally
established, and the date and amount of each subsequent deposit in the Funeral
Trust Account, if any;
3. The name
and address of the bank or financial institution which is holding the funds
deposited in the Funeral Trust Account;
4. The balance in the Funeral Trust Account,
on a monthly basis;
5. A
description of the form and manner in which the trust funds are
invested;
6. A copy of the
individual trust agreement, or, in the case of a common or commingled Funeral
Trust Account established pursuant to
239 CMR
4.09(4), a copy of the
Master Trust Agreement for the common account; and
7. Written documentation sufficient to
demonstrate compliance with all applicable requirements of
239 CMR 4.00 with respect to
all changes in the terms or provisions of the Funeral Trust Account.
(f) Where the funding source for
the funeral goods and services to be provided pursuant to that Pre-need Funeral
Contract is a Pre-need Insurance Policy or Annuity:
1. the name and address of the insurance
company which issued the policy or annuity;
2. the amount of money originally paid to
that insurance company for the issuance of that policy or annuity;
and
3. the face value of that
insurance policy or annuity.
(2) In the case of any common or commingled
Funeral Trust Account established pursuant to
239 CMR
4.09(4), a separate written
record which complies with the requirements of 239 CMR 4.12(1) shall be
maintained for each separate trust Beneficiary.
(3) Any and all records established and
maintained pursuant to 239 CMR 4.12 shall be available upon request, at any
time during regular business hours, to any duly authorized representative of
the Board for inspection.
(4) Any
and all records required by 239 CMR 4.12 shall be made available by the
Licensed Funeral Establishment during regular business hours, to the Buyer of
the Pre-need Funeral Contract to whom those records pertain, the Beneficiary of
the Pre-need Funeral Contract to whom those records pertain, or the legal
representative of either, for inspection within ten days after receipt of any
written request from any such person to examine such records. Upon the written
request of the Buyer, the contract Beneficiary, or the legal representative of
either, the Licensed Funeral Establishment shall furnish copies of all such
records to the requesting party. The Licensed Funeral Establishment may charge
a reasonable fee, not to exceed the actual costs of reproduction, for such
copies.
(5) Every Licensed Funeral
Establishment shall file with the Board, on or before January 31st
of each calendar year, a written report setting forth the
following information:
(a) The number of
Pre-need Funeral Contracts entered into during the preceding calendar
year;
(b) The total number of
Pre-need Funeral Contracts to which the funeral establishment is a
party;
(c) The funding method used
to finance each Pre-need Funeral Contract to which the Licensed Funeral
Establishment is a party;
(d) The
names and addresses of all banks, trust companies, and insurance companies
holding any funds received in connection with any such Pre-need Funeral
Contracts during the preceding calendar year;
(e) The location within the Commonwealth of
Massachusetts where its records pertaining to Pre-need Funeral Contracts are
maintained; and
(f) The number of
Pre-need Funeral Contracts and amount of funds transferred to the Treasurer of
the Commonwealth in accordance with
239 CMR
4.09(5)(c).
(6) Said report shall be made in
such form and manner as the Board may direct.
(7) Upon request by any authorized
representative of the Board in connection with any official inquiry, a Licensed
Funeral Establishment shall furnish complete written information regarding the
total amount of assets being held in connection with Pre-need Funeral Contracts
by each institution or company identified pursuant to 239 CMR 4.12(6) which is
holding any such funds.
