Pre-Need Funeral Arrangements
Section 1: General Definitions & Purpose (1-15)
1. A pre-need funeral arrangement is defined as:
A) A funeral arrangement made after death
B) A funeral arrangement made before death, often funded by a contract
C) A funeral arrangement made by the state
D) A funeral arrangement for indigent persons
2. The primary purpose of a pre-need funeral contract is to:
A) Increase funeral home revenue after death
B) Allow an individual to plan and fund their funeral in advance
C) Replace all at-need funerals
D) Eliminate the need for death certificates
3. Which of the following is typically included in a pre-need arrangement?
A) The selection of specific funeral goods and services
B) The purchase of a car for the funeral home
C) Life insurance for the funeral director
D) Real estate investments
4. A pre-need contract is legally binding between:
A) The funeral home and the state
B) The purchaser (individual or family) and the funeral provider
C) The cemetery and the church
D) The florist and the family
5. Pre-need funeral arrangements are regulated by:
A) Only federal law
B) State laws, often through the state funeral board or insurance department
C) No laws
D) International treaties
6. The person who purchases a pre-need contract is called the:
A) Beneficiary
B) Purchaser or contract holder
C) Executor
D) Funeral director
,7. The person for whom the pre-need funeral is planned is called the:
A) Purchaser
B) Insured
C) Designated beneficiary or decedent
D) Witness
8. A pre-need contract may be funded by:
A) Cash, trust, or insurance
B) Barter system only
C) Promise to pay after death
D) Credit card debt only
9. Which of the following is a key consumer protection in pre-need arrangements?
A) No protection exists
B) Funds must be placed in a trust or insurance product in many states
C) Funds can be spent immediately by the funeral home
D) The contract is not enforceable
10. The difference between a pre-need contract and an at-need contract is:
A) At-need is after death; pre-need is before death
B) Pre-need is after death; at-need is before death
C) No difference
D) Only the price
11. A pre-need contract may be revocable or irrevocable. A revocable contract means:
A) The purchaser cannot cancel
B) The purchaser may cancel and receive a refund
C) The funeral home can cancel anytime
D) The contract is void
12. An irrevocable pre-need contract typically:
A) Cannot be cancelled or refunded except for specific reasons
B) Can be cancelled for any reason
C) Has no funds
D) Is illegal
13. Irrevocable pre-need contracts are often used for:
A) Medicaid asset protection planning
B) Buying a new car
, C) Funding vacation homes
D) Paying off credit cards
14. Pre-need funeral contracts are also known as:
A) At-need contracts
B) Prepaid funeral arrangements
C) Final expense insurance only
D) Living wills
15. Which of the following is NOT a typical component of a pre-need contract?
A) Selection of casket
B) Selection of cemetery plot (sometimes included)
C) Purchase of groceries for the family
D) Selection of service type (burial or cremation)
Section 2: Types of Pre-Need Funding Mechanisms (16-30)
16. The most common funding mechanisms for pre-need funerals are:
A) Real estate and stocks
B) Trust accounts and life insurance policies
C) Cash under the mattress
D) Cryptocurrency
17. A pre-need trust is:
A) A general operating account for the funeral home
B) A separate, restricted account holding funds for future funeral services
C) A checking account
D) An investment in the stock market without restrictions
18. In a trust-funded pre-need contract, the funeral home:
A) Can spend the funds immediately
B) Cannot access the funds until the death of the beneficiary
C) Must give the funds to the family
D) Does not have to account for the funds
19. A pre-need insurance policy is typically:
A) Owned by the funeral home (assignable) or by the purchaser
B) Term life insurance on the funeral director
Section 1: General Definitions & Purpose (1-15)
1. A pre-need funeral arrangement is defined as:
A) A funeral arrangement made after death
B) A funeral arrangement made before death, often funded by a contract
C) A funeral arrangement made by the state
D) A funeral arrangement for indigent persons
2. The primary purpose of a pre-need funeral contract is to:
A) Increase funeral home revenue after death
B) Allow an individual to plan and fund their funeral in advance
C) Replace all at-need funerals
D) Eliminate the need for death certificates
3. Which of the following is typically included in a pre-need arrangement?
A) The selection of specific funeral goods and services
B) The purchase of a car for the funeral home
C) Life insurance for the funeral director
D) Real estate investments
4. A pre-need contract is legally binding between:
A) The funeral home and the state
B) The purchaser (individual or family) and the funeral provider
C) The cemetery and the church
D) The florist and the family
5. Pre-need funeral arrangements are regulated by:
A) Only federal law
B) State laws, often through the state funeral board or insurance department
C) No laws
D) International treaties
6. The person who purchases a pre-need contract is called the:
A) Beneficiary
B) Purchaser or contract holder
C) Executor
D) Funeral director
,7. The person for whom the pre-need funeral is planned is called the:
A) Purchaser
B) Insured
C) Designated beneficiary or decedent
D) Witness
8. A pre-need contract may be funded by:
A) Cash, trust, or insurance
B) Barter system only
C) Promise to pay after death
D) Credit card debt only
9. Which of the following is a key consumer protection in pre-need arrangements?
A) No protection exists
B) Funds must be placed in a trust or insurance product in many states
C) Funds can be spent immediately by the funeral home
D) The contract is not enforceable
10. The difference between a pre-need contract and an at-need contract is:
A) At-need is after death; pre-need is before death
B) Pre-need is after death; at-need is before death
C) No difference
D) Only the price
11. A pre-need contract may be revocable or irrevocable. A revocable contract means:
A) The purchaser cannot cancel
B) The purchaser may cancel and receive a refund
C) The funeral home can cancel anytime
D) The contract is void
12. An irrevocable pre-need contract typically:
A) Cannot be cancelled or refunded except for specific reasons
B) Can be cancelled for any reason
C) Has no funds
D) Is illegal
13. Irrevocable pre-need contracts are often used for:
A) Medicaid asset protection planning
B) Buying a new car
, C) Funding vacation homes
D) Paying off credit cards
14. Pre-need funeral contracts are also known as:
A) At-need contracts
B) Prepaid funeral arrangements
C) Final expense insurance only
D) Living wills
15. Which of the following is NOT a typical component of a pre-need contract?
A) Selection of casket
B) Selection of cemetery plot (sometimes included)
C) Purchase of groceries for the family
D) Selection of service type (burial or cremation)
Section 2: Types of Pre-Need Funding Mechanisms (16-30)
16. The most common funding mechanisms for pre-need funerals are:
A) Real estate and stocks
B) Trust accounts and life insurance policies
C) Cash under the mattress
D) Cryptocurrency
17. A pre-need trust is:
A) A general operating account for the funeral home
B) A separate, restricted account holding funds for future funeral services
C) A checking account
D) An investment in the stock market without restrictions
18. In a trust-funded pre-need contract, the funeral home:
A) Can spend the funds immediately
B) Cannot access the funds until the death of the beneficiary
C) Must give the funds to the family
D) Does not have to account for the funds
19. A pre-need insurance policy is typically:
A) Owned by the funeral home (assignable) or by the purchaser
B) Term life insurance on the funeral director
