Michigan Mortuary Science Practice Exam 2025 - Free Mortuary Science Practice Questions and Study Guide

In the context of prepaid funeral contracts, providing the contract buyer with a statement that indicates the current balance and fees is an important practice for transparency and accountability. By law, buyers must receive such statements at least annually. This requirement ensures that contract holders stay informed about the status of their prepaid funds and any applicable fees that may be deducted over time. Annual statements enable contract buyers to review their contracts, ensure they are in compliance with their arrangements, and make any necessary adjustments or inquiries regarding their prepaid services.

Receiving these statements less frequently, such as biannually, quarterly, or monthly, would not meet the legal requirement set forth in many jurisdictions, including Michigan. Providing an annual update strikes a balance between sufficient oversight for the buyer and administrative feasibility for the funeral service provider. The established timeframe promotes good faith in the transaction and fosters trust between the service provider and the contract holder.