Missouri Funeral Laws and Regulations Complete Practice Exam 2025

Question: 1 / 400

If a preneed contract is invalid, what happens to the consumer’s payments?

They are refunded with interest

They are forfeited completely

All payments made by the consumer are returned without interest

When a preneed contract is determined to be invalid, the consumer's payments are returned without interest. This is in line with Missouri funeral laws, which aim to protect consumers in such situations. The law recognizes that the preneed contract did not fulfill its intended purpose, and as a result, the consumer is entitled to a refund of their payments.

Returning the payments without interest reflects both a measure of consumer protection and fairness, acknowledging the fact that the services promised under the contract were not delivered. Therefore, while the consumer does get their money back, they do not earn any additional funds as interest, as the contract itself is considered void.

In contrast, refunds with interest, forfeiture of payments, or the application of funds for future services do not align with the legal framework governing preneed contracts, which distinctly states the requirement for a straightforward refund of the payments made.

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