Since 1986, Michigan has had two separate acts regulating the services of funerals and cemetery merchandise. As of January 1, 2005, the two acts were combined under the Prepaid Funeral and Cemetery Sales Act. Both parties are now regulated by the same policies.
Warehousing
The Prepaid Funeral Contract Funding Act prevented funeral homes from warehousing caskets for clients as a way to avoid refunding. However, cemeteries were able to. With the new law, neither party can store prepaid funeral merchandise without a refund option.
Regulatory Requirements
Certified reports from a Michigan accountant are now required annually as opposed to every three years. All contracts must be kept for three years. All records must have the total price of services, the amount paid, date of payments, the name and address of the buyer or escrow agent, commissions received, and the date the service was completed or cancelled.
Prohibited Practices
Under the new law, it is prohibited to approach a person to sell him funeral or cemetery services under the knowledge that a death has already occurred or about to happen. It is also prohibited not to refund principal money already paid when a cancellation occurs or refuse to use merchandise bought at a different location.
Tags: Prepaid Funeral, Prepaid Funeral Cemetery, three years