Part 3 INFORMATION FOR APPLICANTS
Section 3.1 APPLICATIONS
Applications and information about the types of licenses and
their requirements are available from the Office. An applicant shall submit a
fully completed application form with all supporting documentation and the fee
to the Office. The Board reviews applications only after the fully completed
application and documentation is received, including evidence of any required
education, supervision, employment, evidence of a license in another
jurisdiction and its licensing standards, or other licensing standards.
An applicant issued an initial license within 90 days of the
renewal date will not be required to renew or pay the renewal fee. The license
will be issued through the next full license period. An applicant issued an
initial license more than 90 days prior to the renewal expiration date will be
required to renew and pay the renewal fee.
Section 3.2 EMBALMER LICENSE
Qualifications for embalmer licensure are outlined in 26 V.S.A.
§ 991.
A. Applicants for embalmer
licensure by examination shall either:
1.
have graduated from a two-year school of funeral service or have completed one
academic year or its equivalent as determined by the Board from an accredited
school of funeral service and 30 credits of instruction from an accredited
college or university, and
2. have
served a traineeship of 12 months of full-time employment or its equivalent,
and
3. pass the examination(s)
required or approved by the Board.
B. Applicants for embalmer licensure by
endorsement shall:
1. have a valid license
from another state with requirements for licensure substantially equivalent to
those in this state, and
2. have
held the license for at least three years prior to the date of application,
and
3. pass the examination(s)
required or approved by the Board pursuant to Rule
3.4 below.
Section 3.3 FUNERAL DIRECTOR
LICENSE
Qualifications for funeral director licensure are outlined in
26 V.S.A. §
1252.
A. Applicants for funeral director licensure
by examination shall:
1. have assisted with
30 funerals, under the direct supervision of a licensed funeral director.
(Funeral director trainees do not need to register or report progress but the
supervising funeral director shall provide verification of completion of the
training at the time the applicant applies for licensure), and
2. pass the examination(s) required or
approved by the Board.
B. Applicants for funeral director licensure
by endorsement shall:
1. have a valid license
from another state with requirements for licensure substantially equivalent to
those in this state, and
2. have
held the license for at least three years prior to the date of application,
and
3. pass the examination(s)
required or approved by the Board pursuant to Rule
3.4 below.
Section 3.4 REMOVAL PERSONNEL
REGISTRATION
Qualifications for removal personnel are outlined in
26 V.S.A. §
1252.
A. Applicants for removal personnel
registration shall:
1. show proof of
employment by a licensed crematory or funeral establishment in good standing in
this state; and
2. Have
successfully completed a course of instruction of at least three clock hours in
infectious diseases.
B.
The course of instruction in infectious diseases must be approved by the Board.
Applicants may contact the Office for a list of approved courses.
C. The Board may waive the course requirement
if the applicant has sufficient education or experience with universal
precautions and infectious diseases.
Section 3.5 EXAMINATIONS
As set forth in
26 V.S.A. §
1253, examinations are required for embalmers
and funeral directors. Applicants shall furnish proof of passing an
examination. The Board uses the written examinations of the Conference of
Funeral Service Examining Boards (CFSEB) and may approve a subsequent or
alternative licensing examination for both embalmers and funeral directors. In
addition, embalmers shall take a practical exam. If any part of an exam is
failed, the exam shall be completely retaken. The CFSEB exams are given in
Vermont at least once a year, but they may be taken in other states if the
results are reported to the Vermont Board.
All applicants for licensure, including applicants for
licensure by endorsement, shall take and pass an examination on the Vermont
laws and rules governing the profession in which he or she is applying for
licensure. This examination must be taken in Vermont, even though other
examinations such as the CFSEB may be taken elsewhere.
Section 3.6 FUNERAL ESTABLISHMENT LICENSE
Qualifications for a Funeral Establishment license are outlined
in
26 V.S.A. §
1252
Applicants for a Funeral Establishment license shall:
1. present permits showing the building to be
used (a) has a water supply and wastewater disposal as required by the Agency
of Natural Resources and (b) has the approval of the state fire marshall,
and
2. identify the funeral
director to be responsible for the funeral establishment, and
3. pass an inspection of the establishment by
the Board or its designee;
Section
3.7 FUNERAL ESTABLISHMENT PREPARATION ROOM REQUIREMENTS
A funeral establishment, if used for embalming or preparation
for final disposition, shall have a preparation room.
A. The preparation room shall have:
1. electrical service, an outside exhaust fan
and hot and cold running water;
2.
walls, floors, ceilings, operating tables, sinks, and other furnishings that
can be kept clean and sanitary, cabinets for clean and sanitary storage of
instruments and a basin for disinfecting instruments after use;
3. proper waste disposal and drainage
facilities, including a covered receptacle for refuse, bandages, cotton and
other waste materials which must be disposed of by burning or placing in a
plastic bag according to guidelines provided by the Department of
Health;
4. windows and lockable
doors that obstruct public view into the room;
5. hydro or electric aspirators;
6. the following items: germicidal soap;
paper towels and dispenser; viscera pail; embalming table (enamel or stainless
steel); sanitary removal cot; clean sheets; at least one large rubber or
plastic disaster pouch; a supply of fluids, powder, disinfectants, cotton,
threads, cosmetics, hair and barber needs, and plastic or rubber goods such as
stockings, pants and unionalls; and an adequate stock of regularly needed
instruments and embalming supplies; and
7. eyewash station or an eyewash disposable
kit conveniently located for emergency use.
In addition, the preparation room shall conform to other
applicable local, state and federal requirements, including occupational safety
and health regulations, Health Department rules, and public building
requirements.
B.
The funeral establishment license and all personnel licenses shall be displayed
together in a conspicuous public area.
Section 3.8 INSPECTIONS
The Board or the Office of Professional Regulation has the
authority to inspect any funeral establishment, equipment, and records related
to items 1 through 5 below, at any reasonable time, and the funeral director
shall make such records available.
The Board or its designee will inspect for and verify the
following:
1. the preparation room,
casket display room (if the funeral establishment has a preparation or casket
display room), chemical storage room or other areas used for conducting of
funeral business to review for conformance to any statute or rule;
2. the motor vehicles used for removal of
human remains;
3. working order of
any required equipment;
4. records
pertaining to prepaid funeral arrangements and forms used, regardless of the
date contracts and forms were developed;
5. general price lists, casket price lists,
vault lists, casket display books or catalogues, and other materials used in
the sale of funeral arrangements and any information provided to
consumers;
Section 3.9
BRANCH LOCATIONS
Each location of a funeral establishment is subject to Board
inspection. However, a location does not require a separate license or fee if
there is no casket display room or preparation room. Copies of the principal
funeral establishment license and all personnel licenses shall be displayed
together in a conspicuous public area. Originals shall be displayed in the
principal establishment.
Section
3.10 LICENSE DENIALS, HEARINGS, APPEALS
A. If the Board intends to deny an
application for a license, the Board shall send the applicant written notice of
the decision by certified mail. The notice shall include a statement of the
reasons for the action and shall advise the applicant that the applicant may
file a petition with the Board for review of its preliminary decision within 30
days of the date on which the notice is mailed. After the hearing, the Board
shall affirm or reverse the preliminary denial, explaining the reason therefor
in writing.
B. A party aggrieved by
a final decision of the Board may appeal that decision by filing a notice of
appeal with the Director who shall assign the case to an appellate officer. The
review shall be conducted on the basis of the record created before the Board.
Persons wishing to appeal shall give written notice of their decision to appeal
within 30 days of receipt of the Board's final decision to; the director of the
Office of Professional Regulation.
The appellate officer's decision may be appealed to Washington
Superior Court.
Part 4 INFORMATION FOR LICENSEES
Section 4.1 RENEWING LICENSES
The Office has a fixed 24-month licensing schedule. Licensees
renew on a fixed biennial schedule: August 1 of the odd-numbered years. A
licensee shall renew by the expiration date printed on his or her license.
Before the license expiration date, the Office will mail a renewal application
and notice of renewal fee. A license will expire automatically if the renewal
application and fee are not returned to the Office by the expiration
date.
A licensee is responsible for notifying the Office promptly if
he or she changes name, mailing address or business address.
Section 4.2 REINSTATING LICENSES
A license which expired because it was not renewed on time may
be reinstated by submitting an application to the Board and paying a
reinstatement fee and the renewal fee for the current renewal period. The Board
may require additional training, continuing education hours, or examination as
a condition of reinstatement.
Section
4.3 CONTINUING EDUCATION
A. All
applicants for renewal or reinstatement of licenses shall successfully complete
10 hours of continuing education per license during the two year period ending
on the license expiration date. Continuing education topics shall be directly
related to maintaining competence in essential issues of public protection and
welfare.
1. Essential issues of public
protection are:
a. chemical
handling
b. handling of blood-borne
pathogens
c. state and federal
statutes related to the funeral industry
d. management of funds
e. fraudulent practices
f. grief management and understanding
multicultural beliefs about death and dying
g. other topics approved by the
Board
B.
Individuals initially licensed for less than one year will not be required to
submit evidence of continuing education until conclusion of the first full,
two-year renewal period following initial licensure.
C. Applicants for renewal of licenses shall
file with their applications a signed Continuing Education Form, provided by
the Office, listing continuing education programs for which they claim credit
and showing the sponsoring organization, location of program, title of program
and description of content, dates attended, and hours claimed.
D. Any person or organization may seek
approval of a planned course offering by petitioning the Board 90 days before
the educational activity will commence. Advance approval requests shall include
the name of the sponsoring organization, location of program, title of program,
description of content, dates of the program, and continuing education hours
requested. A resume of all instructors shall also accompany the request for
approval of a continuing education program.
E. Continuing professional education credit
will be given for whole hours only, with a minimum of fifty minutes
constituting one hour. Contact hours may not include travel time, lunch or
breaks.
F. Credit may be granted
for time spent in activities as an instructor, presenter, or supervisor, for up
to one-half of the hours (5) of continuing education required.
G. Responsibility for documenting the
acceptability of the program and the verification of the hours claimed rests
with the applicant. An applicant shall retain documentation for a period of 5
years after the completion of the program. Such documentation may consist of
certificates of attendance, receipt of registration, or signature of
facilitator provided the signature is accompanied by a parnphlet, program
announcement, or brief summary of the program content. Those records are
subject to inspection and verification by the Board upon request.
H. Continuing education credits for embalmers
may be obtained in any of the categories of essential issues to public
protection listed above.
I. The
Board may set additional standards for continuing education at its
discretion.
Section 4.4
COMPLAINTS OF UNPROFESSIONAL CONDUCT
The Board follows Office procedure for receiving, investigating
and acting on complaints of unprofessional conduct. Copies of the procedure,
complaint forms and more information about the complaint process may be
obtained from the Office.
Part
5 PROFESSIONAL STANDARDS
Section
5.1 PROFESSIONAL STANDARDS FOR FUNERAL DIRECTORS
In addition to any other provisions of law, the following
conduct by a licensee violates professional standards and constitutes
unprofessional conduct. When that conduct is by an applicant or person who
later becomes an applicant, it may constitute grounds for denial of a license
or other disciplinary action.
1.
Allowing an unlicensed person to practice funeral directing except for directly
supervised trainees allowed by Rule 3. 3;
2. Refusing to surrender custody of a dead
human body or cremated remains to a person lawfully entitled to
custody;
3. Failing to pay, or
cause to be paid, to the Board an amount under Rule 7.2 that is less than
required by that rule;
4.
Soliciting or accepting a commission, bonus or rebate for disposing a dead
human body to any crematory, mausoleum or cemetery;
5. Violating any state law, municipal
ordinance or regulation affecting the handling, custody, care, transportation
or documentation relating to dead human bodies;
6. Using any funeral merchandise previously
used in whole or in part without the knowledge of the individual selecting or
paying for the merchandise;
7.
Discriminating in services because of race, religion, national origin, age,
gender, sexual preference, presence of an infectious disease, or
disability;
8. Soliciting business,
or offering any inducement, in money or otherwise, for employing solicitors,
agents, canvassers or others for the purpose of securing or attempting to
secure business, regarding deceased persons or persons whose death is
imminent;
9. Using improper methods
of seeking business, such as using donations, gifts, bonuses or acts of service
designed to place the recipient in a position of obligation or indebtedness, or
transfer or offer to transfer any property or service as payment for business
secured, influenced or otherwise provided or promised.
10. Soliciting dead human bodies or allowing
employees to do so;
11.
Transporting bodies in motor vehicles without shades on the sides or a rigid
container or cover to prevent public view of the remains;
12. Transporting a dead human body for
interment or disposal before obtaining a permit for removal or burial as
required by
18
V.S.A. §
5201;
13. Storing dead human bodies anywhere other
than in a preparation room or locked room, out of view.
14. If inexpensive caskets are displayed,
failing to display the inexpensive caskets in a manner that does not discourage
or disparage purchase and that is equivalent to the display of any other
caskets on display.
15. Failing to
make the consumer aware of, by picture catalogue or display book, in a manner
which does not disparage or discourage the purchase of, the three least
expensive caskets available from wholesalers doing business with the
licensee.
16. Failing to provide
consumers, if the establishment sells caskets from a display book or catalogue,
an opportunity to review the book or catalogue at home.
Section 5.2 PROFESSIONAL STANDARDS FOR
EMBALMERS
In addition to any other provisions of law, the following
conduct by a licensee violates professional standards and constitutes
unprofessional conduct. When that conduct is by an applicant or person who
later becomes an applicant, it may constitute grounds for denial of a license
or other disciplinary action.
1.
Fraudulent or deceptive procurement or use of a license;
2. Practicing the profession when medically
or psychologically unfit to do so;
3. Failing to comply with provisions of
federal or state statutes, municipal ordinance or regulation affecting the
handling, custody, care or transportation of dead human bodies;
4. Using fraud or misrepresentation as an
embalmer;
5. Allowing an unlicensed
person to practice embalming, except for directly supervised trainees as per 26
V.S.A. § 991(2);
6. Preparing
for burial or other disposition of a dead human body, without dignity and
respect for the deceased person as well as for the privacy of the
family;
7. Storing unmarked
receptacles containing embalming fluid or any poisonous or dangerous
substance;
8. Performing embalming,
clean-up or disposal of blood and excretions of a dead human body without
following the "Universal Precautions for the Prevention of HIV and HBV to
Health Care and Public Safety Workers"; and
9. Embalming in a case of sudden, accidental,
or unexplained death, requiring notice to a medical examiner, before obtaining
a release from the medical examiner or state's attorney.
Section 5.3 PROFESSIONAL STANDARDS FOR
REMOVAL PERSONNEL
In addition to any other provisions of law, the following
conduct by a registrant violates professional standards and constitutes
unprofessional conduct. When that conduct is by an applicant or person who
later becomes an applicant, it may constitute grounds for denial of a
registration or other disciplinary action.
1. Failing to comply with provisions of
federal or state statutes, municipal ordinance or regulation affecting the
handling, custody, care or transportation of dead human bodies;
2. Performing a removal of a dead human body,
without dignity and respect for the deceased person as well as for the privacy
of the family;
3. Performing
removals, clean-up or disposal of blood and excretions of a dead human body
without following the "Universal Precautions for the Prevention of HIV and HBV
to Health Care and Public Safety Workers";
4. Refusing to surrender custody of a dead
human body or cremated remains to a person lawfully entitled to
custody;
5. Transporting bodies in
motor vehicles without shades on the sides or a rigid container or cover to
prevent public view of the remains;
6. Transporting a dead human body for
interment or disposal before obtaining a permit for removal or burial as
required by
18
V.S.A. §
5201; and
7. Storing dead human bodies anywhere other
than in a preparation room or locked room, out of view;
Section 5.4 INCORPORATION OF FEDERAL TRADE
COMMISSION RULES
The requirements of the Federal Trade Commission (FTC) Rule,
entitled "Funeral Industry Practices Revised Rule," in effect on July 19, 1994,
are incorporated into these rules by reference. Although all requirements of
the FTC are not outlined in these rules, licensed personnel under the Funeral
Service statutes and rules are required to follow all FTC rules.
Sections of the general price list and all statements of
funeral goods and services shall be numbered and follow the following format,
except that statements of funeral goods and services need not contain items 17
and 18 below.
1. Basic services of
funeral director and staff;
2.
Embalming;
3. Other preparation of
the body;
4. Additional services
and facility fees;
a. facilities and staff for
viewing or visitation
b. facilities
and staff for private viewing by the family
c. facilities and staff for a memorial
service in the funeral home
d.
facilities and staff for a funeral in the funeral home
e. staff for a memorial service in a church
or other facility
f. staff and
equipment for a funeral in a church or other facility
g. staff and equipment for a graveside
service
5. Transfer of
remains to funeral home;
6.
Automotive equipment;
7.
Caskets;
8. Outer burial
containers;
9. Urns;
10. Clothing or other merchandise;
11. Forwarding remains to another funeral
firm;
12. Receiving remains from
another funeral home;
13. Immediate
burial;
14. Direct
cremation;
15. Body donation to a
medical school or facility;
16. A
statement that "Our basic service charge includes a $ 6.00 fee that will be
sent to the State of Vermont and set aside for the protection of funeral
service customers;"
17. A statement
that funds may be available for final disposition through the Vermont
Department of PATH, general assistance program, for persons who qualify;
and
18. A disclosure at the bottom
of the General Price List with the following wording "The funeral industry is
governed by laws defining professional conduct. Consumers who have inquiries or
wish to obtain a form to register a complaint may do so by calling 802-828-2367
or by writing the Secretary of State at 109 State Street, Montpelier, Vermont
05609-1106."
A copy of the general price list required by this rule shall be
submitted to the Office on request.
Part 6 PREPAID FUNERAL ARRANGEMENTS
Section 6.1 PREPAID FUNERAL CONTRACTS; ESCROW
ACCOUNTS
A. A funeral director who sells a
prepaid funeral shall prepare a written contract consistent with 26 V.S.A.
§§ 1271-1275 and these rules. The contract may take the form of a
trust account, insurance policy or annuity. The following contract elements are
required and should be included in the body of the contract or in attachments
expressly incorporated in the contract by reference and attached to the
contract at the time of execution by the purchaser:
1. disclosure of whether the contract is
revocable or irrevocable;
2.
identity of the person expected to be responsible for making funeral
arrangements;
3. all standard
provisions required by the Board by rule;
4. signed and dated statement of goods and
services;
5. itemization of the
funeral goods and services to be provided;
6. a provision describing installment
payments (unless payment is in a lump sum at the time of sale), and the
provisions if payments are not made as agreed;
7. the method for the buyer to exercise the
right of transfer to another funeral director;
8. explanation of the funeral director's duty
to transfer the contract and assets to another funeral director upon
insolvency, bankruptcy, or going out of business;
9. refund provisions;
10. the location of the escrow
account;
11. the identity of the
escrow agent;
12. the
responsibility for filing tax returns;
13. disclosure that the purchaser has until
midnight of the third day after signing the contract to review and revoke the
agreement;
14. disclosure that if
the purchaser has not received notice from the escrow agent that an escrow
account has been established within 20 business days, the purchaser many cancel
the contract at any time; and
15.
disclosure that in the event goods and services are substituted in a pre-need
contract the next of kin or personal representative shall be
notified.
B. If the
contract may be revoked, it must carry this language or its equivalent
conspicuously:
This contract may be revoked by you, the buyer. Simply notify
[name of funeral director] in writing that you no longer want the prepaid
funeral to be provided. The money you have paid, together with all interest or
other earnings, will be refunded, less a transaction fee of $ ___ (not to
exceed 5% of the total).
Reasonable limits on the right to revoke may be imposed, such
as time limits. The limits shall be explained in the contract with the
procedure for revocation.
C. If the contract may not be revoked, it
must carry this language or its equivalent conspicuously:
This contract may not be revoked by you, the buyer. When the
funeral director has provided the funeral goods and services which are itemized
in this contract, (he or she) is entitled to receive the full amount you have
paid, together with all interest or other earnings which have accrued.
If the contract is subject to cancellation for a specific time
period (for example, a three day cancellation period under
9 VSA §
2454 ), the language above must be modified
to make clear that the contract may be revoked until the end of the period, and
not thereafter.
D. When the
prepaid funeral arrangements are complete, the trustee will give a copy of the
prepaid funeral contract and general price lists to the buyer or the buyer's
personal representative.
Section
6.2 ESCROW ACCOUNTS; APPOINTMENT OF ESCROW AGENTS
A. A funeral director shall establish an
escrow account and appoint an escrow agent for each prepaid funeral, or a
single escrow agent for a pooled account. The account shall be one customarily
maintained in a federally insured depository, insurance company or trust
company chartered by the State of Vermont. The depository or company shall have
proper authority to do business in Vermont. Notwithstanding any other provision
of this rule, an insurance policy for funeral expenses only with an insurance
company licensed to do business in Vermont may be considered an escrow account
if it is established by the person contracting for the prepaid funeral and
names the funeral director as beneficiary.
B. Escrow accounts shall be established
within ten business days of receipt of the first payment on each prepaid
funeral. Each subsequent payment shall be deposited in the account within ten
business days of receipt.
C. An
escrow account shall be one of the following: a time deposit, demand deposit,
or certificate of deposit; bonds of the United States, its agencies, the State
of Vermont, its agencies or municipalities, or bonds in which savings banks
chartered by the State of Vermont may invest.
Section 6.3 ESCROW AGENTS; QUALIFICATIONS
A person, other than a federally insured depository, licensed
insurance company or licensed attorney, shall apply for Board approval before
serving as an escrow agent. Any person, including a local elected official,
next of kin or the executor of a buyer's estate, may apply by demonstrating (1)
independence from the funeral director selling the prepaid funeral or funerals
involved, (2) absence of financial interest in the funeral industry, and (3)
absence of conviction for any felony or any misdemeanor involving dishonesty or
theft. When approved, the agent shall file a bond in an amount greater than the
amount to be held in the escrow account, including interest or other
earnings.
Section 6.4 DUTIES
OF ESCROW AGENTS
A. The escrow agent shall
maintain the funds intact in the escrow account, as instructed by the trustee.
The agent shall pay the funds as follows:
1.
to the contracting funeral director upon presentation of a death certificate
and affidavit that the contract has been performed, and a copy of the affidavit
has been provided to the next of kin, as provided by
26 VSA §
1275(a); or
2. to the next of kin or designee upon
presentation of (a) a death certificate and affidavit from the funeral director
who provided the funeral that the funeral has been performed or (b) a death
certificate and an affidavit of the next of kin or personal representative
stating that the initial contracting funeral director had failed to perform the
contract promptly, and that a copy has been provided to the contracting funeral
director. When the escrow agent pays the funds under this provision, the agent
shall notify the initial contracting funeral director and next of kin or
designee;
B. The escrow
agent may also transfer the funds to another allowable escrow account upon
request of the trustee or may pay allowable costs when directed and certified
by the trustee that the costs are allowable under Rules 6.5(C) and
(D).
C. When a contract is revoked
according to its terms, the escrow agent shall pay the money and transaction
fee provided in the contract to the funeral provider, and shall pay the balance
in the account to the purchaser.
Section 6.5 DUTIES OF TRUSTEES
A. Unless the prepaid funeral contract
specifically provides otherwise, the funeral director shall be the trustee of
the account. The contract may provide that the buyer is the trustee or
co-trustee of the account, and responsible for filing and paying tax returns.
Only the funeral director, the buyer, or a trust company may be a trustee of
the account.
B. The trustee shall
give a copy of the prepaid funeral contract to the escrow agent.
C. The trustee shall obtain a taxpayer
identification number for the trust, shall prepare and file income tax returns,
and shall pay all reasonable bank fees and administrative costs charged against
the account. Administrative costs may not exceed the lesser of two percent of
the account, or one-half of the earnings for the previous year.
D. The trustee may transfer funds from one
allowable escrow account to another, when prudent and necessary to protect the
funds, by notifying the escrow agent to make the transfer. The trustee may also
change escrow agents. The trustee shall notify the buyer of each change of
escrow account and escrow agent.
E.
The trustee shall instruct the escrow agent to provide the buyer in writing
within 10 business days after the establishment of the escrow account the
following:
1. location of escrow
account
2. amount of
deposit
3. type of escrow account
established
F. The
contract may be revoked and no administrative fees shall be charged to the
buyer if the information is not provided within 20 business days from the day
of purchase.
G. For revocable
trusts, the trustee or escrow agent shall provide annually to the buyer or his
or her personal representative, in writing, the following information
concerning all escrow accounts:
1. original
deposit
2. ending balance for the
year
3. interest for the
year
4. debits and credits charged
to account for the year
H. For irrevocable trusts, the trustee or
escrow agent shall provide, upon request of the buyer or his or her personal
representative, in writing, the following information concerning all escrow
accounts:
1. original deposit
2. ending balance for the year
3. interest for the year
4. debits and credits charged to account for
the year
Section
6.6 INSURANCE CONTRACTS; ANNUITIES
Licensed funeral directors may sell insurance policies or
annuities to fund prepaid funeral services, provided the funeral director
complies with all state and federal regulations regarding insurance as set
forth by the Commissioner of the Department of Banking, Insurance Securities
and Health Care Administration.
Section
6.7 RECORDS
A. A funeral director
shall maintain the following records relating to each sale of a prepaid
funeral:
1. a copy of all
contracts;
2. a record of all
payments received, and charges made against the account;
3. a copy of the death certificate and
affidavit of performance, and, if applicable, the affidavit of the next of kin
or personal representative;
4. a
copy of each tax return filed by the funeral director, and
5. copies of all correspondence to the buyer
or the buyer's designee regarding the status of the escrow account.
B. These records shall be retained
for seven years following termination or performance of the contract, and shall
be available for inspection and copying, during normal business hours, at the
Board's request. The funeral director may delegate the performance of duties
and maintenance of records to agents but remains responsible for compliance
with these rules.
Part
7 PROTECTION FOR CONSUMERS OF PREPAID FUNERAL ARRANGEMENTS; THE
FUNERAL SERVICES TRUST ACCOUNT
Section 7.1
FUNERAL SERVICES TRUST ACCOUNT
A. The Funeral
Services Trust Account (FSTA) has been established by the General Assembly for
the purpose of protecting purchasers of prepaid funeral arrangements from
default in the performance of contractual obligations by a funeral
establishment. The FSTA shall be administered by the Secretary of State. The
Board will work with the Secretary of State to implement administration of the
FSTA.
B. Funds in the FSTA shall be
available to persons qualifying under Rule
7.3 to defray costs of funeral
services in the event of default upon a contract for a prepaid funeral
arrangement.
Section 7.2
ASSESSMENTS FOR THE FUNERAL SERVICES TRUST ACCOUNT
A. Each licensed funeral establishment shall
pay to the FSTA an assessment of $ 6 per burial or other disposition. The Board
will assess each establishment each year for that establishment's annual
obligation to the FSTA.
B.
Establishments shall pay their FSTA assessment within 15 days from the close of
the assessment period. Each FSTA assessment check shall be made payable to the
Secretary of State, State of Vermont, and shall bear on its face the reference
notation "For Deposit in the Funeral Services Trust Account." Assessment
periods shall end on the last day of December of each year.
C. An establishment shall disclose the per
disposition assessment on the general price list.
D. The initial, special assessment shall be
due on July 1, 1997. Each establishment shall remit to the Board the assessment
set forth in
26 V.S.A. §
1272(9)(a), reproduced in
the table below. Thereafter, the rate per disposition shall be $ 6, until
changed by statute. Determination of the appropriate amount shall be based on
the number of dispositions each establishment conducted during the preceding
calendar year.
1. Establishments performing
fewer than 51 dispositions are assessed an FSTA special assessment of $
150.
2. Establishments performing
between 51 and 150 dispositions are assessed an FSTA special assessment of $
250.
3. Establishments performing
between 151 and 350 dispositions are assessed an FSTA special assessment of $
500.
4. Establishments performing
over 350 dispositions are assessed an FSTA special assessment of $
750.
E. When the FSTA
balance at the beginning of a fiscal year is at least $ 200,000, principal and
interest, no disposition charges will be assessed to funeral establishments
during that fiscal year.
F.
Dispositions paid for by the Vermont Department of Social Welfare are excluded
from the provisions of this rule.
G. In the event more than one establishment
is involved with a single disposition, the establishment filing for the burial
transit permit is responsible for the assessment for that disposition. In the
event that more than one establishment is involved with a single disposition
and one of the establishments is not located in Vermont, the establishment that
is located in Vermont is responsible for the assessment for that
disposition.
Section 7.3
CONSUMER CLAIMS ON THE FUNERAL SERVICES TRUST ACCOUNT
A. In the event a funeral establishment is
insolvent, bankrupt, or has ceased to do business, and is therefore incapable
of performing the prepaid funeral contract into which it has entered, or will
therefore be incapable of performing its prepaid funeral contracts at the time
of need, holders of prepaid funeral contracts are eligible for payment from the
FSTA if the following steps are completed:
1.
The consumer files a copy of the original prepaid funeral contract with the
Board.
2. The Board then determines
the value of the contract. The value of the contract shall consist of the total
of the payments made on the contract by the consumer, plus interest accrued on
those payments. The value determined by the Board shall not serve to enhance
the contract purchased by the consumer.
3. Within six months of the date the Board
receives notice from the consumer, the Board will provide the consumer a
determination of the value of the contract and information about goods and
services previously purchased and will provide guidance to the consumer for
purchasing a new funeral contract for equivalent goods and services with a
funeral establishment of the consumer's choice.
4. The new funeral service contract is filed
with the Board within 10 business days of its creation by the consumer or his
or her personal representative.
5.
The Board will review and accept or decline to accept the new arrangement
according to the value of the contract and information on record about
previously-contracted goods and services.
6. At the time of need, the Board will pay
for the newly contracted and Board-approved pre-need funeral from the
FSTA.
B. The Board may
make exceptions to the requirements of Rule 7.3(A) on a case-by-case basis.
Exceptions will be granted if the Board finds the requirements of Rule 7.3(A)
either present an undue hardship, or are substantially impossible to meet, such
as in the case of an otherwise eligible consumer who never received the notice
explaining the requirements or whose prepaid funeral contract was the subject
of default at the time it became at-need.
C. A consumer who has purchased a prepaid
funeral arrangement is not eligible for payment from the FSTA if the funeral
establishment ceases to do business for any reason but the consumer is able to
recover all of his or her funds, including principal and interest, in the
prepaid funeral arrangement escrow account.
Section 7.4 LIABILITY OF DEFAULTING FUNERAL
ESTABLISHMENTS
The owner of a funeral establishment is liable to the State of
Vermont for all funds paid out of the FSTA as a result of prepaid funeral
contracts upon which the funeral establishment defaulted.
Section 7.5 TERMINATION OF THE FUNERAL
SERVICES TRUST ACCOUNT
In the event the General Assembly determines the FSTA is no
longer needed for the purposes stated in Rule 7. 1(A), funds in the account
shall be dedicated to a use benefitting holders of contracts for prepaid
funeral arrangements.
