Thursday, June 29, 2006
New law provides more protection for those prepaying for funeral
Mississippians who pay for their funeral in advance will be better protected under a new law pushed by Secretary of State Eric Clark.
“If Mississippians choose to pay for a funeral in advance, they have the right to know that the services they paid for will be provided,” Clark said. “This new law safeguards consumers in the event a business fails or any unscrupulous activity occurs.”
The law, which takes effect July 1, increases the amount of money required to be held in trust on pre-need funeral contracts. The contracts sold by a funeral provider - often called “pre-need” contracts - allow a customer to purchase specific funeral arrangements and pre-pay them in a lump sum or over a specified period of time.
The increase from the current 50 percent trust requirement to 85 percent guarantees that more of the customer’s payments are protected from any downturn in the funeral provider’s business. In addition, the new law ensures that the customer is entitled to no less than the amount he or she paid in advance.
For more information, call Clark’s office at 601-359-9055.
(662) 252-4261 or email@example.com
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