Mortuary Science Practice Exam

What must happen to prepaid funeral contracts if a funeral establishment's license is cancelled?

1. They must be destroyed

2. They must be fulfilled or transferred

3. They must be refunded to clients

4. They can be transferred to any business

The correct answer is: They must be fulfilled or transferred

In the event that a funeral establishment's license is cancelled, the prepaid funeral contracts must either be fulfilled or transferred to ensure that the obligations outlined in the contracts are honored. This provision protects consumers who have made advance payments for funeral services, ensuring they still receive the services they paid for despite the cancellation of the funeral home’s license. The fulfillment of contracts means that the services will be provided as agreed upon, which upholds the integrity of the agreements made between the clients and the funeral establishment. Alternatively, transferring the contracts allows for another licensed funeral establishment to take over the obligations, thus ensuring that clients are not left in a difficult position after the cancellation of the original provider’s license. This approach prioritizes consumer protection and maintains trust in the funeral service industry.