South Carolina Funeral Law Practice Exam

What must a provider submit within 30 days if their license to sell preneed funeral contracts is cancelled?

1. Invoices of all contracts sold

2. A list of all active contracts in possession

3. A financial statement

4. Details of all beneficiaries

The correct answer is: A list of all active contracts in possession

When a provider's license to sell preneed funeral contracts is cancelled, it is essential for them to submit a list of all active contracts in their possession within 30 days. This requirement is in place to protect consumers and ensure that all parties involved are aware of the status of these contracts. The list helps regulatory bodies keep track of the obligations the provider has towards consumers and ensures that funds are properly managed and accounted for, especially in cases where the provider may no longer be in operation. The rationale for needing this specific documentation stems from the intention to safeguard consumers who have made future arrangements for funeral services. By requiring a comprehensive list of active contracts, the state can monitor these contracts and potentially ensure that the consumers' prepayments are secured or transferred appropriately. In contrast, while invoices, financial statements, and beneficiary details might be relevant in other contexts, they do not align directly with the immediate need to provide a clear record of existing contractual obligations, which is the primary focus in this circumstance.