Which party has the authority to require a surety bond when a preneed trust audit cannot be submitted?

• A. The purchaser
• B. The board of trustees
• C. The bureau
• D. The local health department

Answer: (C)

The governing regulator responsible for preneed trusts has the power to require a surety bond when a preneed trust audit cannot be submitted. This authority exists to protect consumers and ensure that funds promised for future services remain available even if the records aren’t complete. The bureau oversees preneed contract and trust compliance and can impose a financial guarantee, like a surety bond, as a condition to continue operations or to remedy noncompliance. The purchaser, while a party to a contract, does not have regulatory authority to mandate bonds. The board of trustees governs the specific funeral establishment but generally lacks the regulatory remit to impose bonds across the industry. The local health department focuses on health and safety issues rather than financial compliance of preneed trusts.