If a preneed contract includes both guaranteed and non-guaranteed items, what must the contract contain?

A preneed contract that includes both guaranteed and non-guaranteed items must contain a disclosure about the contract contents to ensure that the consumer is fully informed about what is being provided. This disclosure is crucial because it clearly delineates which items are guaranteed at the price stated in the contract and which items are subject to price changes or availability uncertainties. Such transparency helps protect consumers by making them aware of the potential fluctuations in costs and services associated with their preneed arrangements. By having this information upfront, individuals can make informed decisions about their funeral planning and understand the financial implications of the contract.

Incorporating a cancellation policy, total costs summary, or witness signatures may be part of preneed contracts as good practice, but they do not specifically fulfill the requirement to inform the purchaser about guaranteed versus non-guaranteed items.