What is the penalty if a funeral establishment knowingly fails to present a copy of a preneed agreement to the survivor or the responsible party?

• A. A civil fine equal to two times the cost of the preneed, or $1,000, which ever is greater
• B. A civil fine equal to three times the cost of the preneed, or $5,000, which ever is greater
• C. A civil fine equal to two times the cost of the preneed, or $5,000, which ever is greater
• D. A civil fine equal to three times the cost of the preneed, or $1,000, which ever is greater

Answer: (D)

The rule tests how the law punishes not giving the survivor or responsible party a copy of the preneed agreement. The penalty is a civil fine equal to three times the cost of the preneed, or $1,000, whichever is greater. This means the consequence combines a minimum deterrent with a size that scales with the preneed value: for a very low-cost preneed, the fine hits $1,000; for higher-cost preneeds, the fine becomes three times the cost. For example, a $300 preneed would incur $1,000, while a $4,000 preneed would incur $12,000. This structure protects consumers by ensuring a meaningful penalty even in small transactions, while still punishing larger mispricings proportionally. Other options don’t fit because they either reduce the multiplier or set an inappropriate minimum, which would not align with the established penalty framework.