Mortuary Law Week 11 Exam

Indemnity agreements defined as:

"a duty to make good any loss, damage, or liability incurred by another"

When may it not be possible or beneficial for viewing?

Condition of the body. Circumstances may not lead to a positive memory picture. Everyone reacts to death and processes the emotions differently.

-Cannot contain a cognovit clause or waiver of notice or waiver of rights to be heard if sued for default.

Confession of Judgement

Economic, Physical, Emotional - Consumers

Consumer needs

-A funeral home is NOT exempt if it qualifies as a creditor and extends credit to a consumer. -A creditor is one who extends credit more than 25 times in a year. -Disclosures are not required in cases where credit is extended but funeral home does not qualify as a creditor if extended 25 times or less.

Coverage

Identify the who, what, where, and how of the ethical aspect of the issue.

Define the who, what, where and how of the ethical aspect of the issue

Maintains that the morality of an action is determined by its motives or in accordance with some rules. Also known as non-consequentialism.

Deontological Theory

Testate

Died with a will

Intestate

Died without a will

___ ___ necessitates strict policies since the physical custody of the body is being transferred.

Due Diligence

Economic, physical and emotional - Employee

Employee needs

That branch of philosophy dealing with values relating to human conduct, with respect to the rightness and wrongness of certain actions and to the goodness and badness of the motives and ends of such action.

Ethics

-Cannot contain an executory waiver or limitations of exemption from attachment to real or personal property unless that property is involved in a security interest agreement with the obligation.

Executory Waiver

social pressure

Firm's Financial Status

Use the same area of the funeral home as for ___ ___

Formal viewings.

A rule of ethical conduct found in some form in most major religions usually phrased, "Do unto others as you would have them do unto you."

Golden Rule

Usually enacted to protect consumers

Government Regulations

•Designed to protect the privacy of consumer information held by financial institutions.

Gramm-Leach-Bliley Act

•Only covers institutions that are involved in financial activities and generally does not include funeral homes.

Gramm-Leach-Bliley Act

A moral principle followed consistently regardless of the situation.

Honesty

Identification of the deceased

ID by the authorizing agent or representative, in writing, is paramount when arranging a cremation - no exceptions. Make sure client families clearly understand every detail involved in the arrangement - never make assumptions. ID prior to cremation when embalming and/or a formal visitation has been selected becomes less of an issue.

Define the who, what, where, and how of the issue in general.

Identify the Problem

Most problems have more than one solution.

Identify what options are available in solving the problem

Fidelity to moral principles.

Integrity

3 Question Quick Test

Is it legal/will I be violating either law or company policy? Is it balanced/fair to all concerned in the short term as well as the long term and promote win-win relationships? How will it make me feel about myself?

A late fee may not be charged for an installment payment if that payment did not include a late charge payment for a previous delinquency.

Late charges

believes that individuals develop ethical standards of living by passing through stages of moral development during their lives. Individuals can pass from not understanding moral reasoning at all to a point where making a decision based on moral principles becomes an integral part of one's life

Lawrence Kohlberg

Rules that govern society

Laws

Evaluates the meaning of ethical statements and the structure and reasons used at arriving at normative theories.

Meta-ethics

•Synonymous with ethical. Refers to the customs, values, and standards of practice of a group, age, or theory intended to be timeless.

Moral

Cremation is not an informal or casual procedure. Cause no harm, and treat everyone as if they were your own family member. Always handle human remains in a dignified and respectful manner. Consider all cases will be viewed by the family (unless the condition of the body makes viewing impossible).

NOTES ABOUT CREMATION

Involves formulating moral standards of conduct.

Normative Ethics

Interview crematory management. Ask about:

Ownership Experience Employees- number, experience, training Equipment- age, condition, service schedule Policy on the chain of custody of body through the return of the cremated remains

Mandatory removal of certain specific medical devices.

Pacemakers Defibrillators Prostheses

•to provide certain disclosures to consumers borrowing money.

Purpose

-Cannot use household goods as security for debt.

Security interest in household goods

Moral principles that vary with circumstances.

Situational Ethics

Determining what is the company's social responsibility.

Social Pressure

Crematory records request. Annually request and obtain:

State crematory license or permit Policy and procedure manual for crematory Membership certificates from CANA, BBB, or other organizations List of crematory operators and proof of their license or operator certification Liability insurance policies and professional liability insurance policies Cremation authorizations, releases, and receipt forms used State inspection reports Maintenance /inspection report and logs used internally

Maintains that the morality of an action is determined solely by its consequences. Also known as consequentialism.

Teleological Theory

Inheritance

The estate which passes from the decedent to his/her heirs

Cremation has surpassed the rate of burial in the United States. True or False

True

ID via photo; must have written permission for the photo. True or False

True

Late charges will not be considered to be finance charges. True or False

True

Medical, mechanical or radioactive devices implanted in the remains may create a hazard when placed into a cremation chamber. True or False

True

The ID viewing, like a formal viewing, will provide a lifelong memory. True or False

True

•As a seller, funeral homes are obligated to make manufacturers' warranties available to the consumer. True or False

True

•Congress has enacted a number of laws and and regulations to combat threats of identity theft, credit scams, and other privacy invasion schemes resulting from the computerization of America and the world. True or False

True

•If a funeral home sells a pre-need insurance policy, they are an agent of the company. True or False

True

•If obligor is a company, Truth-in-Lending requirements will not apply True or False

True

•Many of the casket and vault manufacturers do offer warranties on their products. True or False

True

•The obligations of the GLB Act fall upon the insurance company, not the funeral home. T or F

True

•Whenever finance charges are imposed, a person is deemed to be extending credit. True or False

True

Crematory Inspection. To include:

Unannounced visits Plan on how to remedy issues found during an inspection Verify posting of required permits and licenses Overall professionalism of the facility Condition of the facilities Holding area Retort Processing Refrigeration Crematory log review

The morally right action produces the greatest good for the largest number of people.

Utilitarianism

Beliefs that are held in high esteem.

Values

Any ___, releases from liability and indemnification agreements must be signed in order to be binding.

Waivers

May be used when a family declines or refuses to view the decedent for identification purposes.

Waivers

•Restrictions are imposed on ___ and ___ businesses dealing with consumers.

financial and health care

Cremation is an ____ act.

irreversible

•Agreement must be with a "natural person".

natural person means an individual who is not an association, joint venture or joint stock company, partnership, limited partnership, business corporation, nonprofit corporation, other business entity, or any other group of individuals or business entities, however organized.

Magnusson-Moss Warranty Act

•A federal statute which governs express and implied warranties. •Funeral homes are providing warranties on merchandise they sell even though they may not manufacture it. •If a casket is sold, it warrants by implication that the unit is structurally sound to hold the body. •Thus, if the bottom falls out, the funeral home has breached those implied warranties.

Late Charges and Discounts

•Avoid referring to late charge as an interest charge, finance charge, carrying charge, or service charge. •Discounts may be considered finance charges if conditions allow for a reduction in the bill if paid within a certain time period. •If discounts are offered for prompt payment by credit card, cash, or check, such a discount is not considered a finance charge.

HIPPA and Funeral Homes

•HIPPA Rule recognizes funeral directors may be included in class of businesses and individuals receiving privacy information. •The Rule allows covered entities to disclose confidential health information to funeral directors as necessary. •Hospitals may disclose organ and tissue donation as well as other circumstances relevant to the decedent.

HIPPA`

•Health Insurance Portability and Accountability Act. •Passed in 1996, protects patients' medical and health information. •The HIPPA privacy rule includes health care providers, billing and payment services, and health plans. •Funeral homes are neither covered entities nor business associates.

Financial Privacy Rule

•Informs consumers about the type of information the financial institution collects from consumers and what types of businesses or companies they share that information with. •Generally received from banks, stock brokers, insurance companies, and other financial institutions. •May opt out if information is shared with non-affiliated companies.

Disclaimer of Warranties

•Place disclosure in bold face print on Casket and Outer Burial Price Lists as well as on the Statement of Goods and Services Selected.

Preneed Arrangements

•Preneed arrangements may constitute extensions of consumer credit. •If the funeral home imposes a finance charge or if the consumer pays in more than four installments, the preneed arrangements will qualify as extensions of credit. •If 25 or more preneed arrangements per year are sold under these conditions, creditor status is met and Truth-in-Lending disclosures must be made.

Pretexting Provisions

•Prohibits third parties from obtaining personal information through fraud or trickery. •It is a criminal act to falsely obtain personal information from a financial institution or consumers.

Safeguard Rule

•Requires financial institutions to set up and maintain safeguards to protect personal financial information for the consumer. •Requires the use of computer firewalls and encryption devices to protect consumer. •Dictates procedures to follow to destroy information, such as the use of shredders and specially designed trash containers.

Enforcement

•The FTC enforces the GLB Act against non-traditional institutions. •A business is not considered to be a financial institution unless it significantly engages in financial activities. •Although funeral homes engage in financial transactions with consumers, they do not fall within the guidelines for regulation. •The primary business of a funeral home is funeral service, not financial services.

Disclaimer of Warranties

•The law allows sellers of merchandise to disclaim warranties. •Specific language must be used and presented to consumers in a clear and conspicuous manner.

HIPPA Privacy Rule

•There are legitimate needs to disclose individual health information to third parties, such as funeral homes. •HIPPA does not mandate the disclosure of confidential health information but allows covered entities to make disclosures either on a voluntary reporting practice or as a reporting practice that may be compelled by state law.

Uniform Probate Code

•Uniform Probate Code: -A model law to achieve uniformity in probate proceedings throughout the U.S.

•Enacted in ___ by Congress to provide consumers the ability to control how and by whom private financial information they supplied to the lending institution will be used.

1999 Gramm-Leach-Bliley Act

•Enacted in ___, issued telemarketing sales rules that implemented the National Do-Not-Call List.

2003

According to the NFDA, ___ states require identification of the deceased prior to cremation.

37

Bequest/Legacy

A gift of personal property

Devier

A gift of realestate

Testator/trix

A man/woman who makes a valid will

A moral principle followed consistently regardless of the situation.

Absolute Moral Standard

Probate

- legal process whereby decedent died with assets in his name alone; personal representative gathers assets, pays debts, and distributes assets to parties entitled by law or by will.

Debt collectors are prohibited from:

-Calling before 8:00 a.m. or after 9:00 p.m. -Not ceasing further communication when requested by consumer. -Calling with the intent to annoy, abuse or harass. -Calling at the place of employment. -Calling when consumer is represented by attorney. -Publishing consumer's name and address on a bad debt list.

FTC has six basic compliance requirements:

-Cognovit or a confession of judgment. -Executory waiver from attachment to property. -Assignment of wages. -Security interest in household goods. -Co-signor practices. -Late charges.

•Funeral homes are subject to several federal consumer protection and disclosure measures that regulate billing and collection practices.

-Federal Truth-in-Lending Act -Magnusson-Moss Warranty Act -Credit Practices Regulation

•Disclosure is required if funeral home:

-Routinely uses retail credit installment contracts for payment of at-need or preneed contracts. -Acts as a preneed insurance agent. -Assists consumers in obtaining loans from lenders to pay for funerals.

Three primary parts of the GBL Act

-The Financial Privacy Rule -The Safeguard Rule -The Pretexting Provisions

Cremation Authorization Components

1.Identification of the Decedent 2.Identification of Authorizing Agent- who is authorizing 3.Authority of Authorizing Agent- under what authority 4.Medical Devices 5.Authorization to Cremate, Process, and Pulverize 6.Disposition of Personal Property 7.Instructions of Final Disposition 8.Authority to Dispose of Unclaimed Cremated Remains. (I dispose the word dispose in any context related to the deceased, even though it is used often. If someone ever referred to my children or my mother in the context of needing to be disposed, I would be so offended. Disposition of or placement of sounds so much softer and non-offensive. And the text also uses the word cremains. That is a slang industry term and is a lazy word. The proper term is cremated remains.) 9.Recycling Metal. Here's a link to a class action lawsuit you can read about involving crematories against Stericycle. http://www.thefarmerfirm.com/stericycle/ 10.Certification and indemnification

10 Point chain of custody verification.

1.Verify the identity at place of death. 2.Family identification at funeral home. 3.Verification upon delivery to the crematory. 4.Verification before placement into cremation chamber. 5.Verification at the beginning of the chamber clean out. 6.Verification at the start of processing. 7.Verification before placement of cremated remains into urn/cremation container. 8.Verification when urn/container is given to funeral home. 9.Verification before urn/container is given to family. 10.Acknowledgment of receipt of urn/container by family.

-Wages or earnings cannot be assigned unless assignment is revocable, is a payroll deduction plan or applies to wages already earned at time of assignment.

Assignment of Wages

What are some of the reasons and benefits of viewing?

Avoids misidentification. Initiates the psychological healing process for the family.

Alternative identification options that may be utilized if the body is not viewable.

Bloodwork and lab testing. Dental records - if available. Fingerprints. Physical features. Significant physical conditions. Jewelry on the remains at the time of death. Body markings such as scars, tattoos or piercings. X-rays CT scans DNA

Case reports provides a record of:

Body conditions upon arrival to the facility. Accompanying or attached medical devices/prostheses. Personal effects. Treatments performed. Dates and times of all significant events/actions.

If more than one issue is involved, isolate and separate the issues.

Break down the problem into smaller identifiable elements

What is good or moral in business transactions.

Business Ethics

-Cannot misrepresent the co-signor's liability and must inform co-signor prior to being obligated.

Co-signor practices

A declaration or statement of the professional standards of right and wrong conduct.

Code of Ethics