Michigan Mortuary Science Practice Exam

When dealing with a guaranteed price contract, who is typically responsible for choosing the escrow agent?

1. The funeral director

2. The next of kin

3. The funeral service provider

4. The deceased's attorney

The correct answer is: The funeral service provider

In a guaranteed price contract, the responsibility for choosing the escrow agent typically falls to the funeral service provider. This choice is significant because the funeral service provider has the expertise and experience to select an escrow agent who can effectively manage the arrangement to ensure that the funds are held securely and in accordance with the terms of the contract. The escrow agent plays a crucial role in holding the funds until the services are rendered, which ensures that the pre-arranged funeral costs will be covered as agreed upon in the contract. By having the funeral service provider make this selection, it helps to streamline the process and ensures that the needs of the family are met while maintaining compliance with industry standards and regulations. The other parties, such as the funeral director or the next of kin, may not have the same level of understanding about the escrow processes necessary or the obligations involved, making the funeral service provider the most logical choice to assume this responsibility.