What must be done with payments collected by or on behalf of the seller for insurance funded contracts?

Payments collected by or on behalf of the seller for insurance-funded contracts must be remitted to the insurer no more than 30 days from the request. This requirement ensures that the funds are handled responsibly and in accordance with regulations governing insurance payments. Timely remittance is crucial, as it upholds the integrity of the insurance process and ensures that the beneficiaries receive their entitled benefits without unnecessary delays.

By specifying a time frame for these remittances, the law aims to protect both the consumer's interests and the operational standards of the insurance industry. It reduces the risk of mishandling funds and promotes transparency in financial transactions related to funeral services. Adhering to this guideline is critical for funeral directors as it fosters trust with clients while ensuring compliance with state laws.