What happens to preneed contracts if no funeral home is designated after a closure?

When a funeral home closes and there is no designated funeral home specified in preneed contracts, the proper procedure involves the board designating a funeral home to honor those contracts. This ensures that individuals who have pre-planned their funeral services still receive the benefits and services they paid for, despite the closure of the original establishment. This process helps maintain the integrity of preneed contracts and protects the interests of consumers, ensuring they can still fulfill their final arrangements as intended.

The board's involvement is crucial in this situation, as it serves as a regulatory body that oversees the transition and designates another funeral home that will honor these contracts, thereby preventing them from becoming null or void. This approach ensures continuity and upholds the commitments made in preneed agreements.