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BAM 805 2 of 6 PREPAID FUNERAL CONTRACTS BPB 2026-015 6-1-2026

BRIDGES ADMINISTRATIVE MANUAL STATE OF MICHIGAN DEPARTMENT OF HEALTH & HUMAN SERVICES

• A DHS-8A, Irrevocable Funeral Contract Certification, cannot be used to certify a life insurance funded funeral or annuity funded funeral as irrevocable. • Transfers of a funeral contract with an 8A must be purchased as a prepaid guaranteed price contract with the funeral provider. TYPES OF MICHIGAN FUNERAL CONTRACTS A guaranteed price contract fixes the price to be charged for funeral goods and services listed in the contract. A non-guaranteed price contract states clearly that the price of listed goods and services might fluctuate. Actual costs at delivery might be more or less than the amount in the contract fund. A revocable contract can be terminated by the purchaser and the money refunded. The refund might be less than the contract's total value. A contract is revocable unless certified irrevocable by DHS using the DHS 8-A. For program eligibility purposes, an irrevocable contract means money in the contract fund, including interest or dividends, is permanently unavailable to the purchaser/beneficiary; see conditions to certify contracts irrevocable in this item. OUT-OF-STATE FUNERAL CONTRACTS MDHHS can certify as irrevocable a funeral contract with an out-of- state contract seller or funeral provider only if the seller and provider (if separate) are registered with the Michigan Department of Licensing and Regulatory Affairs. If they are, see conditions to certify contracts irrevocable in this item. A prepaid funeral contract with an unregistered out-of-state seller or provider is controlled by the other state's laws. The contract funds are unavailable if the contract is irrevocable under the other state's law. Assist clients needing help to determine the status of out-of-state contracts. Inform them that revocable contracts with unregistered