Current through Register Vol. 41, No. 3, September 23, 2024
A.
All preneed burial contracts must be made on forms prescribed by the board in
accordance with § 54.1-2328 of the Code of Virginia and must contain the
following disclosures:
1. Identifies the
seller, seller's license number, contract buyer and person for whom the
contract is purchased if other than the contract buyer;
2. Contains a complete description of the
property or services purchased;
3.
Clearly discloses whether the price of the property and services purchased are
guaranteed;
4. States, for funds
required to be trusted pursuant to § 54.1-2325 of the Code of Virginia,
the amount to be trusted and the name of the trustee;
5. Contains the name, address and telephone
number of the board and lists the board as the regulatory agency which handles
consumer complaints;
6. Provides
that any purchaser who makes payment under the contract may terminate the
agreement within three days of execution and that such purchaser shall be
refunded all consideration paid or delivered, less amounts paid for any
property or supplies that have been delivered;
7. Provides that if the particular property
or services specified in the contract are unavailable at the time of delivery,
the seller shall be required to furnish property or services similar in size
and style and at least equal in quality of material and workmanship and that
the representative of the deceased shall have the right to choose the property
or services to be substituted, which shall be at least equal or reasonably
equivalent in quality of material, workmanship, and cost;
8. Discloses any additional costs that the
purchaser may be required to pay at-need, including the disclosure of the cost
of opening and closing the grave;
9. Complies with all disclosure requirements
imposed by the board;
10. Is
executed in duplicate and a signed copy given to the buyer;
11. Provides that the contract buyer shall
have the right to change the contract provider at any time prior to the
furnishing of the property or services, excluding any mausoleum crypt or garden
crypt, contracted for under the preneed burial contract. If the contract seller
will not be furnishing the property and services to the purchaser, the contract
seller shall attach to the preneed burial contract a copy of the seller's
agreement with the provider.
B. Any preneed burial contract sold or
offered by any cemetery company or agent with a trust fund deposit of less than
100% shall be required to include the following printed statement in
capitalized letters, in 10-point, bold-faced type:
THIS PRENEED BURIAL CONTRACT REQUIRES THE PLACEMENT IN
TRUST OF A MINIMUM OF 40% OF THE FUNDS INCLUDED IN THIS CONTRACT. THE BALANCE
OF FUNDS MAY BE USED FOR CARE AND MAINTENANCE OF THE CEMETERY AND ARE NOT
REQUIRED TO BE PLACED IN TRUST.
C. Each seller of a preneed burial contract
shall file with the board, upon request, a detailed account of all contracts
and transactions regarding preneed burial contracts in accordance with §
54.1-2332 of the Code of Virginia.
§§ 54.1-201 and 54.1-2313 of the Code of
Virginia.
