Effective - 28 Aug 2009
436.425. Contract form, requirements — voidability of contract — waiver of contract benefits for public assistance recipients. — 1. All preneed contracts shall be sequentially numbered and in writing and in a font type and size that are easily read, and shall clearly and conspicuously:
(1) Include the name, address and phone number of the purchaser, beneficiary, provider and seller;
(2) Identify the name, address, phone and license number of the provider and the seller;
(3) Set out in detail the disposition, funeral and burial services and facilities, and merchandise requested;
(4) Identify whether the contract is trust funded, insurance funded, or joint account funded;
(5) Include notice that the cancellation of the contract shall not cancel any life insurance funding the contract, and that insurance cancellation is required to be made in writing to the insurer;
(6) Include notice that the purchaser will only receive the cash surrender value of any insurance policy funding the contract if cancelled after a designated time, which may be less than the amount paid into the policy;
(7) Include notice that the board provides by rule that the purchaser has the right to transfer the provider designation to another provider;
(8) Prominently identify whether the contract is revocable or irrevocable;
(9) Set forth the terms for cancellation by the purchaser or by the seller;
(10) Identify any preneed trust or joint account into which contract payments shall be deposited, including the name and address of the corresponding trustee or financial institution;
(11) Include the name, address and phone number of any insurance company issuing an insurance policy used to fund the preneed contract;
(12) Include the name and signature of the purchaser, the provider or its authorized representative, the preneed agent responsible for the sale of the contract, and the seller or its authorized representative;
(13) Prominently identify whether the contract is a guaranteed or nonguaranteed contract;
(14) Include any applicable consumer disclosures required by the board by rule; and
(15) Include a disclosure on all guaranteed installment payment contracts informing the purchaser what will take place in the event the beneficiary dies before all installments have been paid, including an explanation of what will be owed by the purchaser for the funeral services in such an event;
(16) Comply with the provisions of sections 436.400 to 436.520 or any rule promulgated thereunder.
2. A preneed contract shall be voidable and unenforceable at the option of the purchaser, or the purchaser's legal representative, if it is determined in a court of competent jurisdiction that the contract is not in compliance with this section or not issued by a seller licensed under chapter 333, or if the provider has not consented to serve as provider at the time the contract was executed. Upon exercising the option by written notice to the seller and provider, all payments made under such contract shall be recoverable by the purchaser, or the purchaser's legal representative, from the contract seller, trustee, or other payee thereof.
3. A beneficiary who seeks to become eligible to receive public assistance under chapter 208 or any other applicable state or federal law may irrevocably waive their rights to receive any refund or payment of any moneys from the funds or insurance used to fund their preneed contract. Such irrevocable waiver may be executed at any time and shall be in writing, signed and dated by the beneficiary and shall be delivered to the seller and any applicable trustee, financial institution or insurance company.
4. All purchasers shall have the right as provided in this chapter to cancel or rescind a revocable preneed contract and transfer any preneed contract with or without cause.
5. A preneed contract, shall not be changed from a trust-funded, insurance-funded, or joint account-funded preneed contract without the written consent of the purchaser.
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(L. 2009 S.B. 1)
Structure Missouri Revised Statutes
Title XXVIII - Contracts and Contractual Relations
Chapter 436 - Special Purpose Contracts
Section 436.100 - Definitions.
Section 436.103 - Action for damages or injunction, jurisdiction.
Section 436.105 - Franchisor to have registered agent on file in office of secretary of state.
Section 436.150 - Definitions.
Section 436.157 - Contract for payment of royalties must be in writing, content.
Section 436.159 - Prohibited acts by performing rights society, exception — violations — penalties.
Section 436.163 - Laws applicable only to performing rights societies.
Section 436.215 - Citation of law.
Section 436.218 - Definitions.
Section 436.221 - Director's authority.
Section 436.233 - Sanctioning of certificate of registration, when — complaint procedure.
Section 436.236 - Temporary certificate of registration permitted, when.
Section 436.239 - Application fee — athlete agent fund created — rulemaking authority.
Section 436.248 - Cancellation of contract, when.
Section 436.251 - Records to be retained.
Section 436.254 - Prohibited acts.
Section 436.263 - Violations, penalties.
Section 436.266 - Uniformity considered in applying law.
Section 436.272 - Moneys collected for certain violations to be transferred to general revenue.
Section 436.300 - Private construction work contract payment requirements.
Section 436.303 - Contract provisions — retainage.
Section 436.306 - Security tendered, when.
Section 436.309 - Subcontractor may tender substitute security, when.
Section 436.312 - Substitute security requirements.
Section 436.315 - Withholding of retainage prohibited, when.
Section 436.318 - Release of retainage, payment made.
Section 436.321 - Adjustment in retainage, when.
Section 436.324 - Release of retainage, when.
Section 436.327 - Substantial completion defined.
Section 436.330 - Subcontractor obligations.
Section 436.333 - Unenforceability of contracts entered into after August 28, 2002.
Section 436.336 - Applicability.
Section 436.350 - Definitions.
Section 436.353 - Notice of offer to cure defects by contractor, contents — effect on court actions.
Section 436.362 - Mediation requirements.
Section 436.365 - Law not to restrict or inhibit other remedies or ability to contract.
Section 436.400 - Citation of law — applicability.
Section 436.405 - Definitions.
Section 436.410 - Applicability exceptions.
Section 436.412 - Violations, disciplinary actions authorized — governing law for contracts.
Section 436.415 - Provision of certain services required by provider — seller's duties.
Section 436.430 - Trust-funded preneed contract requirements.
Section 436.440 - Provisions applicable to all preneed trusts.
Section 436.445 - Trustee not to make decisions, when.
Section 436.450 - Insurance-funded preneed contract requirements.
Section 436.455 - Joint account-funded preneed contract requirements.
Section 436.456 - Cancellation of contract, when, procedure.
Section 436.457 - Seller's right to cancel, when, procedure.
Section 436.458 - Alternative provider permitted, when.
Section 436.460 - Seller report to board required, contents — fee — filing of reports.
Section 436.465 - Record-keeping requirements of seller.
Section 436.470 - Complaint procedure — violation, attorney general may file court action.
Section 436.480 - Death or incapacity of purchaser, transfer of rights and remedies, to whom.
Section 436.485 - Violations, penalties.
Section 436.490 - Sale of business assets of provider — report to board required, contents.
Section 436.500 - Sale of business assets by seller, report to board required, contents.
Section 436.505 - Credit life insurance may be offered to purchaser.
Section 436.510 - Seller's failure to make timely payment, effect of — rights of purchaser.