What is needed to sell preneed contracts?

To sell preneed contracts, a certificate of authority is necessary. This certificate serves as the legal permission granted by the state, allowing an individual or business to engage in the sale of preneed funeral contracts. Preneed contracts involve agreements between a funeral service provider and a consumer to prepay for funeral services before they are needed, thus they are regulated to ensure that providers meet financial and operational standards within the industry.

Having this certificate operates under the regulatory oversight of the state funeral board, ensuring that practitioners comply with laws designed to protect consumers. The process typically includes demonstrating financial stability, ensuring proper bookkeeping practices, and sometimes proving that funds will be handled securely. This regulatory framework helps to foster trust between consumers and funeral service providers, making the certificate of authority an essential requirement for selling these contracts.

While business licenses and registrations can be important for operating a business in general, they do not specifically qualify an entity to sell preneed contracts, and insurance policies, while relevant to many aspects of funeral services, are not the direct requirement for selling these contracts. Therefore, the certificate of authority stands out as the critical credential needed for this purpose.