239 C.M.R. 4.03 – Notice of Changes Affecting Pre-need Funeral Contracts Required

(1) A Licensed Funeral Establishment shall send written notice of any proposed cessation of the funeral establishment's operation to the Buyer (and Beneficiary, if different) of each Pre-need Funeral Contract, via certified mail, return receipt requested, at least ten days prior to the effective date of that proposed cessation of operations. Such notice shall inform the Buyer (and Beneficiary, if different) of their right to:
1. (a) Transfer that Pre-need Funeral Contract and all funds connected with that contract to another Licensed Funeral Establishment of their choice, or
2. (b) Cancel that Pre-need Funeral Contract, if it is Revocable, and receive a refund of all funds connected with that contract pursuant to 239 CMR 4.07(3).
3. (c) In the event that the Buyer does not respond to this notice within 30 days after the date on which the notice was sent, there shall be a rebuttable presumption that the Pre-need Funeral Contract and all funds connected with that contract have been transferred to the transferee funeral establishment of which the Buyer (and Beneficiary, if different) was notified of in the written notice required under 239 CMR 4.03(1).
(2) A Licensed Funeral Establishment shall send written notice of any transfer of ownership of that funeral establishment, or sale of any portion of its assets, to the Buyer (and Beneficiary, if different) of every Pre-need Funeral Contract to which it is a party, via certified mail, return receipt requested, not later than ten days after the effective date of said transfer or sale. Such notice shall request that the Buyer inform the funeral establishment, in writing, whether the Buyer wishes to:
1. (a) Transfer that Pre-need Funeral Contract, and assign all funds paid in connection with that contract, to the new owner(s) of that funeral establishment;
2. (b) Transfer that Pre-need Funeral Contract, and assign all funds paid in connection with that contract, to another Licensed Funeral Establishment of their choice;
3. (c) Cancel that Pre-need Funeral Contract, if it is Revocable, and receive a refund of all funds paid in connection with that contract pursuant to 239 CMR 4.07(3);
4. (d) In the event that the Buyer does not respond to this notice within 30 days after the date on which the notice was sent, there shall be a rebuttable presumption that the Pre-need Funeral Contract and all funds connected with that contract have been transferred to the new owner(s) of the transferee funeral establishment.
(3) In the event that a Licensed Funeral Establishment enters into an assignment for the benefit of creditors or other debt reorganization plan, or institutes bankruptcy or receivership proceedings under state or federal law, the funeral establishment shall send to the Buyer (and Beneficiary, if different) of each Pre-need Funeral Contract to which it is a party, via certified mail, return receipt requested, a written explanation of how their rights and obligations under the Pre-need Funeral Contract will be affected by that event.