Mortuary Science Practice Exam

Who can choose the escrow agent for a guaranteed price contract?

1. The family of the deceased

2. The provider designated to furnish funeral services

3. The cemetery owner

4. The state regulatory board

The correct answer is: The provider designated to furnish funeral services

In a guaranteed price contract, the provider designated to furnish funeral services is typically responsible for choosing the escrow agent. This choice aligns with the contractual agreement that the provider has with the family regarding the pre-arrangement of services and the financial management of funds. The provider's role includes ensuring that the financial aspects are properly handled to honor the family's wishes at the time of need. The escrow agent is a neutral party responsible for holding and managing the funds until the services are rendered. Having the funeral service provider select the escrow agent helps streamline the process and ensures that there is a clear understanding of the terms involved. This also allows the provider to choose an escrow agent that is familiar with the industry standards and regulations, which can lead to greater assurance for the family that their funds will be handled appropriately. Other groups, such as family members, cemetery owners, or state regulatory boards, do not typically hold this responsibility in the context of guaranteed price contracts. Families may express preferences or concerns, but it is ultimately the provider's duty to manage the logistics involved in securing the escrow agent for the contract.