New Jersey Mortuary Science Practice Exam

What must a provider disclose when selling a funeral insurance policy?

1. The cost of the insurance policy

2. That they will receive a commission

3. A breakdown of funeral costs

4. The duration of the insurance policy

The correct answer is: That they will receive a commission

When selling a funeral insurance policy, it is essential for a provider to disclose that they will receive a commission. This requirement stems from ethical considerations and transparency in financial transactions. By informing the consumer about the commission, the provider ensures that the potential policyholder is aware of any financial incentives that might affect the recommendations or services being offered. This helps foster a trusting relationship between the funeral service provider and the consumer, allowing the latter to make informed decisions regarding their financial commitments towards funeral expenses. Other options, while important aspects of a funeral insurance policy, do not carry the same regulatory emphasis on transparency regarding potential conflicts of interest. For instance, the cost of the insurance policy is certainly a vital piece of information, as is the duration of the insurance policy; however, they do not directly relate to how the transaction might be influenced by the seller’s financial gain. A breakdown of funeral costs is also relevant for helping consumers understand what their funds will cover, but again, it does not address the provider’s potential bias in making sales decisions based on commission.