VA LRR – Preneed QUESTIONS AND
ANSWERS 2024
10% of funds may be retained by the contract provider when the contract is funded by a
_____account. - Correct Answer trust
Contract providers, i.e. funeral homes, must keep a listing of all preneed contracts in
______________ OR _______________ order. - Correct Answer chronological;
alphabetical
The funeral home's listing of preneed contracts shall include these 6 things: - Correct
Answer 1. name of the contract buyer
2. name of the contract beneficiary
3. date the contract was made
4. how the contract was funded, where the contract was funded, and where the funds
are maintained
5. whether or not up to 10% of funds are retained by the contract provider, if funded
through a trust account
6. whether funeral goods and supplies are stored for the contract buyer
If a contract provider that sells preneed discontinues its business operations, by closure
or by change in ownership, who must be notified in writing? (2 answers) - Correct
Answer 1. The VA Board of Funeral Directors and Embalmers
2. each existing contract buyer
A closing firm must provide the Board with a _______________ at the time of closure.
(5 words) - Correct Answer current list of preneed contracts
If a firm changes ownership, and the new firm _________ (does/does not) intend to
honor existing contracts, it must notify its preneed contract buyers within _______ days
of the change in ownership via a publication of general circulation. - Correct Answer
does; 90
If a firm changes ownership, and the new firm _________ (does/does not) intend to
honor existing contracts, it must notify its preneed contract buyers within _______ days
of the change in ownership individually in writing. - Correct Answer does not; 90
A preneed contract needs to contain the following 4 things: - Correct Answer 1. date
of the contract
2. whether or not the price of supplies and services purchased is guaranteed
3. the appointee agreement, if applicable
4. signatures of the contract seller and the contract buyer
ANSWERS 2024
10% of funds may be retained by the contract provider when the contract is funded by a
_____account. - Correct Answer trust
Contract providers, i.e. funeral homes, must keep a listing of all preneed contracts in
______________ OR _______________ order. - Correct Answer chronological;
alphabetical
The funeral home's listing of preneed contracts shall include these 6 things: - Correct
Answer 1. name of the contract buyer
2. name of the contract beneficiary
3. date the contract was made
4. how the contract was funded, where the contract was funded, and where the funds
are maintained
5. whether or not up to 10% of funds are retained by the contract provider, if funded
through a trust account
6. whether funeral goods and supplies are stored for the contract buyer
If a contract provider that sells preneed discontinues its business operations, by closure
or by change in ownership, who must be notified in writing? (2 answers) - Correct
Answer 1. The VA Board of Funeral Directors and Embalmers
2. each existing contract buyer
A closing firm must provide the Board with a _______________ at the time of closure.
(5 words) - Correct Answer current list of preneed contracts
If a firm changes ownership, and the new firm _________ (does/does not) intend to
honor existing contracts, it must notify its preneed contract buyers within _______ days
of the change in ownership via a publication of general circulation. - Correct Answer
does; 90
If a firm changes ownership, and the new firm _________ (does/does not) intend to
honor existing contracts, it must notify its preneed contract buyers within _______ days
of the change in ownership individually in writing. - Correct Answer does not; 90
A preneed contract needs to contain the following 4 things: - Correct Answer 1. date
of the contract
2. whether or not the price of supplies and services purchased is guaranteed
3. the appointee agreement, if applicable
4. signatures of the contract seller and the contract buyer
