§441-22.8 - Cancellation; default and termination; refund.

[§441-22.8] Cancellation; default and
termination; refund. (a) At any time before pre-need funeral services or
pre-need interment services are received by the purchaser or the purchaser's
contract beneficiary, the purchaser may cancel the contract containing any
pre-need funeral services or pre-need interment services by notifying the
cemetery or pre-need funeral authority, in writing, of the purchaser's desire
to cancel the contract.

(b) Before a cemetery or pre-need funeral
authority terminates a contract containing pre-need funeral services or
pre-need interment services because of a delinquency in payment, the following
conditions shall be met:

(1) Four months in advance of the contemplated
termination date, the cemetery or pre-need funeral authority shall provide
written notice to the purchaser at the purchaser's last known address and the
notice shall include at a minimum:

(A) The total amount owed under the contract
at the time it was originally signed, dates and amounts of payments, adjustments,
and credits received to date, and the amount of the delinquency;

(B) An explanation as to how the purchaser may
effectuate continuance of the contract within four months of the date of
notice;

(D) A statement that advises the purchaser of
all other requirements under this subsection;

(2) During the four-month period, but not less than
once a month, and only so long as the purchaser fails to effectuate continuance
of the contract as provided herein, the cemetery or pre-need funeral authority
shall provide the written notice required under paragraph (1);

(3) If, however, there is a reasonable good faith
bona fide dispute between the parties as to the amount of delinquency, the
four-month period shall not start until the dispute is resolved; and

(4) If the purchaser fails to effectuate continuance
of the contract by the end of the four-month period, the cemetery or pre-need
funeral authority may terminate the contract under the terms and conditions of
the contract.

If the purchaser elects to effectuate continuance of
the pre-need funeral services or pre-need interment services contract within
the four-month period, the cemetery or pre-need funeral authority may require
that the purchaser make payment to effectuate the continuance; provided that
the amount required shall not be in excess of one installment payment of the
purchaser's contract. The purchaser shall resume payment on the pre-need
funeral services or pre-need interment services contract in the amounts and as
often as required under the terms and conditions of the contract and until all
payments owed on the contract are paid in full.

(1) Allow a purchaser to effectuate continuance of a
contract where a purchaser becomes delinquent again after the four-month period
provided in subsection (b) has passed, and may thereafter terminate the
contract under the terms and conditions of the contract; provided that the
cemetery or pre-need funeral authority gives written notice of the termination
to the purchaser at the purchaser's last known address at least ninety days
prior to termination; or

(2) Provide pre-need funeral services or pre-need
interment services unless the contract is paid in full.

(d) If the contract is canceled or terminated
pursuant to subsection (a) or (b) or for any other reason, the purchaser shall
be entitled to a refund of the amounts paid by the purchaser, less amounts that
may be retained by the cemetery or pre-need funeral authority for its costs
pursuant to section 441-38(b). The cemetery or pre-need funeral authority
shall make the refund to the purchaser within thirty days of:

(1) Receipt of the purchaser's written notice of
cancellation; or

(2) Termination of the contract. [L 2007, c 188, §1]