Consumer and Non-Profit Law
The Pre-Arranged Funeral Services Act
Introduction
A pre-arranged funeral plan is a formal agreement with a funeral director, which allows a person to make personal funeral arrangements, in consideration of payment in advance by a lump sum or by installments. Pre-arranged funeral plans are regulated by the Consumer Affairs Branch of the New Brunswick Department of Justice under the authority of the Pre-Arranged Funeral Services Act.
A funeral director who wishes to offer this service must be licensed under this Act. Only a funeral director or an employee of a funeral director may offer pre-arranged funeral services.
Deposits
All deposits received by the licensed funeral director must be deposited into a “trust account” in a credit union or trust company authorized to do business in the Province.
Contracts
All contracts regarding pre-arranged funeral services must show:
- a detailed description of the goods and services to be included in the plan,
- a detailed description of the goods and services not to be included in the plan,
- the place where the funeral services are to be performed,
- the distribution of interest earned on trust money,
- the rights of either party or their representatives in the event of the termination, cancellation or discontinuance of the plan by either party or the failure of either party to meet his obligation under the plan,
- the name and address of the licensee.
Exceptions
The Pre-Arranged Funeral Services Act does not apply to the following:
- a mutual benefit society,
- a fraternal society
- an insurance company authorized to do business in New Brunswick,
- any person or class of persons exempt from the Act by the Lieutenant-Governor in Council.
Cancellation
- a pre-arranged funeral plan may be cancelled within seven days without penalty.
- cancellation rights after seven days must be specified in the contract by a penalty that must not exceed one hundred and fifty dollars ($150).
- the contract must contain a notice of these rights in both official languages.
Solicitations
No licensed funeral director or his employee or other person working on his behalf is permitted to see a pre-arranged funeral plan:
- at a hospital or at a home or residence for the elderly unless written permission is granted by the management of this institution,
- to an individual at his place of business or residence without prior approval of the person being solicited,
- by means of direct selling as defined under the Direct Sellers Act, (i.e. by door-to-door sales),
- by telephone.
For further information about your rights under the Pre-Arranged Funeral Services Act, contact:
Financial and Consumer Services Commission
1-866-933-2222
www.fcnb.ca
PLEIS-NB
P.O. Box 6000 Fredericton, N.B.
E3B 5H1 CANADA
Tel: (506) 453-5369
Fax: (506) 462-5193
Email: pleisnb@web.ca
Disclaimer: Please note that our website contains general information about the law. This is not a complete statement of the law on particular topics. We try to update our publications often, but laws change frequently so it is important for you to check to make sure the information is up to date. The information in our publications is not a substitute for legal advice. To receive legal advice about your specific situation, you need to speak to a lawyer.
