The American Way of Death Revisited - Jessica Mitford [143]
One of the biggest problems—and greatest opportunities for mischief—may be the choice of casket. Like automobiles, casket styles change often, sometimes as frequently as every six months. If your pre-need agreement specifies the “Tuscany H66813D” and the Tuscany H66813D is no longer available, your survivors may be asked, for an added fee, to select a different box.
A legal action now pending in Louisiana suggests that there may be far more serious problems in obtaining the benefits of a pre-need plan.
E. J. Ourso sold his fifteen funeral homes and funeral insurance company, Security Industrial, to Loewen in 1996 for a reported $180 million. One can only speculate on how the value of these properties was broken down in the negotiations over price, but it seems reasonable to guess that the funeral homes were worth no more than $3 million apiece, on average, or $45 million total. Given that assumption, Loewen paid about $135 million for the funeral insurance company.
Why would Loewen pay that much money to take over liability for funeral insurance policies—many of which were sold decades ago for $300 or less—guaranteeing to provide a funeral which today would cost many times that amount? Wouldn’t they expect to lose a lot of money when people cash in the policies? Are these people saints? One can only guess, but it seems likely that Loewen expects to sell a lot of “extras” to the survivors.
At this writing, a class action has been filed. Undoubtedly, many versions of the “facts” will be argued before it is resolved. In the meantime, Peggy Porter of Baton Rouge—whose father is a claimant in the suit—wrote a lengthy letter to her state representative, describing the ordeals her family went through with an insurance policy that had promised to fully cover her mother’s funeral. The letter is quoted in abridged form below:
Dear Mr. Dardenne,
Please accept this letter as a formal request to personally meet with you to discuss a matter of great importance to the elderly and the “baby boomers” of Louisiana.…
Hopefully, you won’t send me a form letter telling me that another department handles such matters. I have tried them all. Earlier, I wrote to the La. State Insurance Commission, La. State Board of Embalmers and Funeral Directors, La. State Attorney General’s Office, Jefferson Parish Attorney General’s Office, New Orleans Better Business Bureau, Funeral Service Consumer Assistance Program and the Federal Trade Commission.…
The La. State Insurance Commission, although they are investigating my complaint, say that they do not have jurisdiction over such matters. They say the La. Board of Embalmers and Funeral Directors has control. This involves an insurance policy which should be under the control of the insurance commission. Pam Williams has said that because there have been so many complaints, there has been a task force set up to investigate these matters. This has been happening for more than 20 years. How long and how many complaints does it take to get action and restitution? Mr. and Mrs. Schwartz and my father are in their eighties. Time is running out.
The La. Board of Embalmers and Funeral Directors replied to my complaint by saying, in a “unanimous decision they found no apparent violation of the statutes, rules and/or regulations under which the board is empowered to operate.” They also stated that the Board has no jurisdiction over “insurance” policies. I wasn’t given the opportunity to appear and speak before this board made this decision. The La. Board of Embalmers and Funeral