The National Funeral Directors Association, the largest organization of funeral service professionals in the United States, has adopted the Model Consumer Protection Guidelines for State Preneed Funeral Statutes (the "Guidelines"). The Guidelines are designed to insure that consumers who purchase preneed funeral goods and services make informed decisions, receive protection against the loss of prepaid funds, deal with ethical and licensed preneed sellers and agents, and retain the right to cancel preneed funeral contracts or transfer preneed funding to different funeral providers.
The Guidelines address the following seven areas of preneed regulation:
These Guidelines further NFDA's recognized policy that all preneed trust funds and preneed insurance policies are held as a sacred obligation for the benefit and protection of the consumer. No access to, or use of, those funds or policies for any purpose other than that for which they were established should be allowed.
NFDA and its member state funeral associations will work with state legislatures and regulatory authorities to amend existing preneed statutes and/or adopt new preneed statutes to provide the consumer protection provisions set forth in the Guidelines.
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