436.405. Definitions.

MISSOURI STATUTES AND CODES

Definitions.

436.405. 1. As used in sections 436.400 to 436.520, unless thecontext otherwise requires, the following terms shall mean:

(1) "Beneficiary", the individual who is to be the subject of thedisposition or who will receive funeral services, facilities, ormerchandise described in a preneed contract;

(2) "Guaranteed contract", a preneed contract in which the sellerpromises, assures, or guarantees to the purchaser that all or any portionof the costs for the disposition, services, facilities, or merchandiseidentified in a preneed contract will be no greater than the amountdesignated in the contract upon the preneed beneficiary's death or thatsuch costs will be otherwise limited or restricted;

(3) "Insurance-funded preneed contract", a preneed contract which isdesignated to be funded by payments or proceeds from an insurance policy orsingle premium annuity contract;

(4) "Joint account-funded preneed contract", a preneed contract whichdesignates that payments for the preneed contract made by or on behalf ofthe purchaser will be deposited and maintained in a joint account in thenames of the purchaser and seller, as provided in this chapter;

(5) "Market value", a fair market value:

(a) As to cash, the amount thereof;

(b) As to a security as of any date, the price for the security as ofthat date obtained from a generally recognized source, or to the extent nogenerally recognized source exists, the price to sell the security in anorderly transaction between unrelated market participants at themeasurement date; and

(c) As to any other asset, the price to sell the asset in an orderlytransaction between unrelated market participants at the measurement dateconsistent with statements of financial accounting standards;

(6) "Nonguaranteed contract", a preneed contract in which the sellerdoes not promise, assure, or guarantee that all or any portion of the costsfor the disposition, facilities, service, or merchandise identified in apreneed contract will be limited to the amount designated in the contractupon the preneed beneficiary's death or that such costs will be otherwiselimited or restricted;

(7) "Preneed contract", any contract or other arrangement whichprovides for the final disposition in Missouri of a dead human body,funeral or burial services or facilities, or funeral merchandise, wheresuch disposition, services, facilities, or merchandise are not immediatelyrequired. Such contracts include, but are not limited to, agreementsproviding for a membership fee or any other fee for the purpose offurnishing final disposition, funeral or burial services or facilities, orfuneral merchandise at a discount or at a future date;

(8) "Preneed trust", a trust to receive deposits of, administer, anddisburse payments received under preneed contracts, together with incomethereon;

(9) "Purchaser", the person who is obligated to pay under a preneedcontract;

(10) "Trustee", the trustee of a preneed trust, including successortrustees;

(11) "Trust-funded preneed contract", a preneed contract whichprovides that payments for the preneed contract shall be deposited andmaintained in trust.

2. All terms defined in chapter 333, RSMo, shall be deemed to havethe same meaning when used in sections 436.400 to 436.520.