Tennessee Funeral Service Laws Rules & Regulations (LRR) Practice Exam

If a pre-need agreement is irrevocable, what must be included in bold type?

1. Contract seller

2. Client responsibility

3. Final arrangements

4. Disclosure of fees

The correct answer is: Contract seller

When a pre-need agreement is designated as irrevocable, it is essential to clearly identify the contract seller in bold type. This requirement ensures that the individual or entity responsible for fulfilling the terms of the pre-need agreement is straightforward and prominent within the document. By emphasizing the contract seller, it provides clarity and accountability, which is particularly important when the services are being paid for in advance and the individual will be relying on this party to carry out the final arrangements at the time of need. Including the identification of the contract seller in bold type also aids in consumer protection, allowing clients to easily recognize who is bound by the agreement. This enhances transparency within the arrangements and supports the consumer’s understanding of their rights and responsibilities regarding the pre-need services they are purchasing. Other components, such as client responsibilities, final arrangements, and disclosure of fees, while important, do not hold the same legal emphasis as the identification of the contract seller in the context of an irrevocable pre-need agreement. The explicit focus on the seller underscores the significance of knowing who will deliver the promised services, thus ensuring the client is well informed about who to approach in the future regarding their pre-paid plans.