Skip to Main Content
<< Back | Return to Main COMAR Search Page

12 records match your request.

FileAbstract
10.29.06.00.htm 10.29.06.00. Title 10 MARYLAND DEPARTMENT OF HEALTH Subtitle 29 BOARD OF MORTICIANS AND FUNERAL DIRECTORS Chapter 06 Preneed Contract Authority: Health Occupations Article, §7-404, 7-405, and 7-504, Annotated Code of Maryland
10.29.06.01.htm 10.29.06.01. 01 Scope.. These regulations apply to all preneed contracts entered into by a licensed mortician, a licensed funeral director, and a holder of a surviving spouse license with a buyer.
10.29.06.02.htm 10.29.06.02. 02 Definitions.. A. In this chapter, the following terms have the meanings indicated.. B. Terms Defined.. 1) "Annual Report" means the report required annually to document those preneed trust accounts established in 1998 and after 1998.2) "At need" means funeral arrangements made after the death of an individual by one authorized to make those arrangements.3) "Beneficiary" means the individual on whose behalf the preneed contract is purchased..
10.29.06.03.htm 10.29.06.03. 03 Execution of Preneed Contract.. A. Only a licensed mortician, licensed funeral director, or holder of a surviving spouse license may make pre-arrangements and execute preneed contracts with buyers.B. The seller shall present to the buyer a preneed contract which contains all of the information set forth in Health Occupations Article, §7-404, Annotated Code of Maryland.C. The seller and buyer of a preneed contract shall execute the contract in duplicate, with a copy o
10.29.06.04.htm 10.29.06.04. 04 Disposition of Preneed Contract Fund.. A. Within 10 days of receiving payment under a preneed contract, the seller shall deposit into an interest-bearing escrow or trust account that is insured by the Federal Deposit Insurance Corporation (FDIC)1) An amount from the payment that is equal to at least 80 percent of the selling price of a casket or casket vault under the preneed contract; and
10.29.06.05.htm 10.29.06.05. 05 Obligations of Seller.. A. A seller shall provide the buyer with:. 1) A general price list of all goods and services for the buyer to keep;. 2) A statement of goods and services that are reasonably expected to be required at the time of need, but are not included in the preneed contract;3) Information concerning cancellation and refund rights under Health Occupations Article, §7-405(d) Annotated Code of Maryland;4) A receipt for all monies received and a copy of
10.29.06.06.htm 10.29.06.06. 06 Termination of Preneed Contract.. A. Except as otherwise provided in this regulation, a preneed contract may not be terminated by the seller.B. Except as otherwise provided in this section, a seller may not withdraw from the preneed interest-bearing escrow or trust account the money received from a buyer unless the services and merchandise agreed to in the contract have been provided.C. At the time a preneed contract is terminated, the seller shall refund to
10.29.06.07.htm 10.29.06.07. 07 Premature Death of Beneficiary or Buyer.. If the death of the buyer or beneficiary occurs before the terms and conditions of the preneed contract are met, the buyer or legal representative of the beneficiary shall be given the option of withdrawing all funds paid and interest accrued or renegotiating a contract with mutually agreed upon financial adjustments.
10.29.06.08.htm 10.29.06.08. 08 Sale or Change in the Ownership of a Funeral Corporation or Establishment.. A. A funeral corporation or establishment which is in the process of being sold shall file with the Board a list of preneed contracts and document that the money resulting from the preneed contracts has been set aside in an interest-bearing, federally insured escrow or trust account.B. The seller of the funeral corporation or establishment shall document that arrangements have been
10.29.06.09.htm 10.29.06.09. 09 Irrevocable Trusts.. A. A buyer may establish an irrevocable trust with respect to all or any portion of the payment made under the contract in an interest-bearing, federally insured escrow or trust account held by the seller, but only for the purpose of entitling the buyer to be eligible for current Social Security benefits or for benefits under any other plan that restricts eligibility to those with limited assets.B. The seller shall present to the buyer a documen
10.29.06.10.htm 10.29.06.10. 10 Prohibitions.. A. The following individuals may not enter into a preneed contract with a buyer:. 1) The owner or director of a corporation license issued by the Board who is not also a licensed mortician, funeral director, or holder of a surviving spouse license;2) A holder of an apprentice license;. 3) A holder of a courtesy card license; or. 4) An individual who is not licensed by the Board as a mortician, funeral director, or surviving spouse license holder.
10.29.06.9999.htm 10.29.06.9999. Administrative History Effective date: September 26, 1994 (21:19 Md. R. 1635). Regulation .02B amended effective March 18, 2002 (29:5 Md. R. 504) August 27, 2007 (34:17 Md. R. 1508)Regulation .02B amended as an emergency provision effective November 5, 2007 (34:24 Md. R. 2154) amended permanently effective February 25, 2008 (35:4 Md. R. 514)Regulation .03 amended effective March 18, 2002 (29:5 Md. R. 504). Regulation .03A amended effective August 27, 2007 (34:17 Md. R. 1508).
<< Back | Return to Main COMAR Search Page