Michigan Mortuary Science Practice Exam 2026 - Free Mortuary Science Practice Questions and Study Guide

The correct answer is based on regulations that came into effect regarding the handling and management of funds related to funeral service contracts, particularly in terms of consumer protection and financial accountability. After December 31, 2008, legislation mandates that a minimum of 80% of the funds received from a funerary pre-need sale must be placed into an escrow account.

This requirement ensures that a significant portion of the funds intended for future funeral services is securely held and protected over time, reducing the risk of misappropriation or loss. It is meant to provide peace of mind to consumers, knowing that a guaranteed amount for their burial or funeral expenses is safeguarded.

The percentages that are lower than 80% do not meet the legal standard designed to protect consumers' investments in pre-need contracts. Hence, the answer indicating that 80% is required aligns with the established legal framework aimed at ensuring the responsible management of these funds in Michigan.