Is a Funeral Provider still required to honor the Pre-need Contract?
Yes. Neither the Agreed Order placing these companies into receivership nor the Liquidation Order alters the obligations that funeral homes have to consumers. Although inflation or growth payments under the NPS contracts will not be paid under the liquidation plan, funeral homes are still obligated to honor the preneed burial contracts at the time of need. In Texas, the funeral home still has a contractual liability to honor the pre-need funeral contract by furnishing the described benefits specified in the contract, or provide their equivalent in quality, for the contract price as promised.
