A group of Preneed Stakeholders met in May with representatives from the Colorado Attorney General's Office to learn more about the charges filed in a pending lawsuit against Neptune Management Corporation, d/b/a/ The Neptune Society.

After a complaint lodged by a consumer in 2008 and subsequent investigation by the Colorado Division of Insurance, Neptune Management Corporation faces several charges including:

• plan and practice to avoid compliance with preneed trusting requirements,

• violations of the general provider agreements,

• conditioning the sale of a preneed contract upon the purchase of a second contract, and,

• violation of several tenets of the Colorado Consumer Protection Act.

The trial will begin September 17, 2009, in the State's Office of Administrative Courts.

The Colorado Funeral Directors Association subscribes to a Code of Ethics that members of the funeral service profession should maintain high ideals of public service and behavior; apply conduct befitting good citizens; and engage in honesty and fairness in all offerings of service and merchandise, and in all business transactions.

The allegations of illegal practices conducted by the Neptune Society do not reflect the tenets of CFDA's Code of Ethics. More significantly, these allegations do not promote confidence or trust in the hundreds of honorable funeral service professionals who conduct business according to State laws that pertain to Preneed Funeral Contracts.

The Colorado Funeral Directors Association recognizes the Colorado Insurance Commissioner and the Colorado Attorney General's Office for their efforts to protect consumers from fraudulent activity. CFDA hopes that there is a speedy resolution to the Neptune Society matter and that consumers will remain confident in the high level of trust, honor and respect provided by members of the funeral service profession in Colorado.

CFDA representatives met recently with staff from the Colorado Department of Regulatory Agencies Office of Policy, Research and Regulatory Reform to discuss preneed insurance issues.

As required by law, DORA staff is conducting a Sunset Review of Colorado's Division of Insurance functions related to regulation of property and casualty, automobile, and any other entity or function that does not offer health, life, property, casualty, or automobile insurance by the Division.

Recommendations made by CFDA members include random, periodic audits of preneed contract license holders to ensure compliance, and establishing regular communication with Division of Insurance staff to discuss preneed issues, perhaps through a CFDA-appointed task force.

DORA's report and recommendations will be issued later this year.

Effective August 1, 2009, all human remains shipments originating in the U.S. or its territories must be tendered by a “known shipper.”
This policy will apply to all airlines accepting human remains for transport, and requires funeral homes to register as a “known shipper” for each airline they use to ship bodies.
The process will require an inspection and payment of an inspection fee, and can create an administrative burden on funeral homes to register with multiple airlines.

Save time and hassle!  SR International Logistics can get your establishment registered in TSA's Known Shipper Management System.

Funeral Service Legislation

CFDA's 2009 Legislative Committee

These dedicated individuals engaged in many hours of discussions, attended numerous meetings, and testified in support of HB 1202 at the State Capital during the 2009 Legislative Session.

Chuck Bowman, MSP/CFSP, Horan & McConaty Funeral Service, Lakewood -- Committee Chairperson
Elvin Caldwell, Jr., CFD, Caldwell-Kirk Mortuary, Denver
George A. Malesich, CFD, Malesich and Shirey Funeral Home, Arvada
Eric Wolverton, MSP/CFSP, SCI Olinger Chapel Hill Mortuary, Littleton
Bill Clayton, Lombard & Clayton - CFDA' s Lobbyist
Tony Lombard, Lombard & Clayton - CFDA's Lobbyist
Steffani G. Blackstock, CFDA - Executive Director