What is the time limit for a contract seller to deposit funds from a pre-need agreement?

The correct answer is based on the regulations governing pre-need funeral agreements in Tennessee, which stipulate that funds received from a pre-need agreement must be deposited into a required trust or insurance policy within a specific timeframe to ensure proper management and safeguarding of consumer funds. In Tennessee, the law specifies that a contract seller must deposit these funds within 30 days from the date of receipt. This timeline is in place to enhance consumer protection, ensuring that funds intended for future funeral services are not held indefinitely and are appropriately preserved for the designated purpose.

Other options do not align with the legal timeline set forth by the state regulations regarding pre-need agreements. The established 30-day period ensures that pre-need contracts are honored and that the funds are secured in a timely manner, which is crucial for maintaining the trust between consumers and providers in the funeral industry.