Tennessee Funeral Service Laws Rules & Regulations (LRR) Practice Exam

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Study for the Tennessee Funeral Service Laws Rules and Regulations Exam. Use flashcards and multiple-choice questions, with hints and explanations for each. Prepare thoroughly for your exam!

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What condition must be clearly stated in a pre-need agreement according to Tennessee law?

Funds are transferable
Funds are refundable
Funds are non-refundable
Funds may be increased with interest

The correct answer is: Funds are non-refundable

In Tennessee, pre-need agreements must clearly specify that the funds are non-refundable, which is crucial for legal clarity and consumer protection. This requirement ensures that consumers are fully aware that once they enter into a pre-need contract and make payments, those funds cannot be retrieved if they change their minds or decide against using the services. This provision helps prevent misunderstandings between funeral homes and consumers regarding the financial commitments involved in pre-need agreements. It promotes transparency and reinforces trust in the funeral service industry by ensuring that all parties are informed about the nature of their financial arrangements upfront. This detail is vital for both the consumer and the service provider, as it establishes clear expectations about the use of the funds designated for future services.