239 C.M.R. 4.12 – Recordkeeping Requirements

(1) Each Licensed Funeral Establishment shall maintain a separate, legible written record for each Pre-need Funeral Contract to which that funeral establishment is a party. Said records shall be maintained at all times on the premises of that funeral establishment, or on the premises of another specifically-identified Licensed Funeral Establishment within the Commonwealth which is owned and operated by the same proprietor, corporation, partnership, association, limited liability company, limited liability partnership or other business entity. At a minimum, such records shall contain all of the following information:
1. (a) A fully-executed copy of the Pre-need Funeral Contract;
2. (b) A fully-executed copy of each amendment or modification of the terms of that Pre-need Funeral Contract;
3. (c) In the case of any Pre-need Funeral Contract which was transferred to another funeral establishment after its original execution, the name and address of the funeral establishment to which that Pre-need Funeral Contract was transferred and written documentation that the Buyer and/or Beneficiary has authorized that transfer;
4. (d) In the case of any Pre-need Funeral Contract which has been performed (i.e., the funeral goods and services specified in that contract have been provided to the Beneficiary of that contract), a copy of the death certificate for the Beneficiary of that Pre-need Funeral Contract and written documentation that the funeral goods and services specified in that contract were provided;
5. (e) Where the funding source for the funeral goods and services to be provided pursuant to that Pre-need Funeral Contract is a Funeral Trust Account:
  1. 1. The name, address, date of birth and social security number of the named trust Beneficiary;
  2. 2. Copies of bank statements and deposit slips from the bank or financial institution which is holding the funds deposited in the Funeral Trust Account which show the date on which the funeral trust was originally established, the amount of money originally deposited in the Funeral Trust Account at the time the Funeral Trust Account was originally established, and the date and amount of each subsequent deposit in the Funeral Trust Account, if any;
  3. 3. The name and address of the bank or financial institution which is holding the funds deposited in the Funeral Trust Account;
  4. 4. The balance in the Funeral Trust Account, on a monthly basis;
  5. 5. A description of the form and manner in which the trust funds are invested;
  6. 6. A copy of the individual trust agreement, or, in the case of a common or commingled Funeral Trust Account established pursuant to 239 CMR 4.09(4), a copy of the Master Trust Agreement for the common account; and
  7. 7. Written documentation sufficient to demonstrate compliance with all applicable requirements of 239 CMR 4.00 with respect to all changes in the terms or provisions of the Funeral Trust Account.
6. (e) Where the funding source for the funeral goods and services to be provided pursuant to that Pre-need Funeral Contract is a Pre-need Insurance Policy or Annuity:
  1. 1. the name and address of the insurance company which issued the policy or annuity;
  2. 2. the amount of money originally paid to that insurance company for the issuance of that policy or annuity; and
  3. 3. the face value of that insurance policy or annuity.
(2) In the case of any common or commingled Funeral Trust Account established pursuant to 239 CMR 4.09(4), a separate written record which complies with the requirements of 239 CMR 4.12(1) shall be maintained for each separate trust Beneficiary.
(3) Any and all records established and maintained pursuant to 239 CMR 4.12 shall be available upon request, at any time during regular business hours, to any duly authorized representative of the Board for inspection.
(4) Any and all records required by 239 CMR 4.12 shall be made available by the Licensed Funeral Establishment during regular business hours, to the Buyer of the Pre-need Funeral Contract to whom those records pertain, the Beneficiary of the Pre-need Funeral Contract to whom those records pertain, or the legal representative of either, for inspection within ten days after receipt of any written request from any such person to examine such records. Upon the written request of the Buyer, the contract Beneficiary, or the legal representative of either, the Licensed Funeral Establishment shall furnish copies of all such records to the requesting party. The Licensed Funeral Establishment may charge a reasonable fee, not to exceed the actual costs of reproduction, for such copies.
(5) Every Licensed Funeral Establishment shall file with the Board, on or before January 31st of each calendar year, a written report setting forth the following information:
1. (a) The number of Pre-need Funeral Contracts entered into during the preceding calendar year;
2. (b) The total number of Pre-need Funeral Contracts to which the funeral establishment is a party;
3. (c) The funding method used to finance each Pre-need Funeral Contract to which the Licensed Funeral Establishment is a party;
4. (d) The names and addresses of all banks, trust companies, and insurance companies holding any funds received in connection with any such Pre-need Funeral Contracts during the preceding calendar year;
5. (e) The location within the Commonwealth of Massachusetts where its records pertaining to Pre-need Funeral Contracts are maintained; and
6. (f) The number of Pre-need Funeral Contracts and amount of funds transferred to the Treasurer of the Commonwealth in accordance with 239 CMR 4.09(5)(c).
(6) Said report shall be made in such form and manner as the Board may direct.
(7) Upon request by any authorized representative of the Board in connection with any official inquiry, a Licensed Funeral Establishment shall furnish complete written information regarding the total amount of assets being held in connection with Pre-need Funeral Contracts by each institution or company identified pursuant to 239 CMR 4.12(6) which is holding any such funds.