Safeguarding Your Business from Cremation Liability T. Scott Gilligan & Mike Nicodemus

Transcription

1 NFDA Live Webinar January 8, p.m. CT Page 1 Safeguarding Your Business from Cremation Liability T. Scott Gilligan Mike Nicodemus NFDA Live Webinar January 8, p.m. CT Webinar Agenda 1. Webinar Overview 2. Introduction of Today s Experts 3. Today s Presentation 4. Q & A Session After the Webinar CE Attendance Form Online Evaluation The fact that NFDA presents this educational seminar does not denote that the association endorses, recommends or supports the opinions expressed by seminar presenters or participants. 2 Webinar Overview Clear your computer desktop for optimum viewing 3

2 NFDA Live Webinar January 8, p.m. CT Page 2 Webinar Overview Clear your computer desktop for optimum viewing Click X to hide or open your control panel 4 Webinar Overview Clear your computer desktop for optimum viewing To listen via computer speakers click on Mic & Speakers. If computer sound is inadequate, click on Telephone and dial-in number will appear. 5 Webinar Overview Clear your computer desktop for optimum viewing Enter questions here at any time; click Send 6

3 NFDA Live Webinar January 8, p.m. CT Page 3 Today s Experts T. Scott Gilligan NFDA General Counsel Mike Nicodemus NFDA Vice President Cremation Services 7 4 Components of Due Diligence II. Crematory Records Request III. Crematory Interview IV. Crematory Inspection 8 Internal Due Diligence Steps A. Cremation Authorization B. Identification C. Transportation D. Handling Cremated Remains E. Insurance Review F. Agreements with Third-Party Service Providers G. Crematory Due Diligence File 9

4 NFDA Live Webinar January 8, p.m. CT Page 4 A. Cremation Authorization Minimum Cremation Authorization Form Contents A. Identity of decedent B. ID of authorizing agent C. Medical devices removal/disposal D. Permission to cremate & pulverize E. Container/casket cremated F. Acknowledge commingling, retrieval G. Designation of urn/container H. Personal property I. Final disposition J. Certification of accuracy 10 Initials As Authorizing Agent, I instruct the funeral home to remove each device (except for a radioactive device) listed above and to charge for its services in making or arranging for such removal. Unless indicated directly below, the funeral home is to dispose of all such devices. 11 Devices Pacemakers Implantable Cardioverter Defibrillators (ICDs) Cardiac Resynchronization Therapy Devices (CRTDs) Implantable Drug Pumps continued 12

5 NFDA Live Webinar January 8, p.m. CT Page 5 Neurostimulators (including for pain and functional electrical stimulation) Bone Growth Stimulators Hydrocephalus Programmable Shunts Fixion Nails Radioactive Seeds (Brachytherapy) Any other battery powered implant 13 B. Identification Process Meticulous records of chain of custody of remains from initial removal through final disposition must be maintained 1. Receiving remains 2. Transfer to crematory 3. Transfer back to funeral home 4. Transfer to authorizing agent 14 B. Identification Process 1. Receiving Remains ID of body by authorizing agent or rep; in writing on authorization form ID tag affixed to remains for entire time body is in the possession of funeral home 15

6 NFDA Live Webinar January 8, p.m. CT Page 6 B. Identification Process 2. Transfer to Crematory Funeral home should have crematory execute receipt for remains when turned over to crematory 16 B. Identification Process 3. Transfer Back to Funeral Home Ensure ID tag is: - Attached to urn or container - Also inside urn or container With more than one container, both must be identified 17 B. Identification Process 4. Transfer to Authorizing Agent Cremated remains stored in secure areas Log book: to/from receipt and delivery If jewelry or other objects on remains, identify object 18

7 NFDA Live Webinar January 8, p.m. CT Page 7 Chain of custody documentation is essential to be able to prove that the remains were properly handled throughout the entire process. 19 C. Transportation Funeral home personnel: Deliver remains to crematory Confirm and document that crematory operator has: 1. accepted remains 2. been presented with authorization 3. executed receipt 20 D. Handling Cremated Remains When accepting cremated remains from crematory, funeral home personnel: Inspect inside/outside of urn/container for ID Execute receipt to crematory Deliver remains to designated agent Document representative changes Obtain receipt from agent/representative Preserve documentation 21

8 NFDA Live Webinar January 8, p.m. CT Page 8 E. Insurance Review (periodically) Review liability insurance. Adequate? Covers independent contractors (crematory)? Consider umbrella policy for catastrophic court judgment Include choice of counsel option Require third-party providers to add funeral home as additional insured 22 F. Agreements with Third-Party Service Providers Contract Recommendations Spell out who is responsible for tasks Include mutual indemnification agreements that protect each party from negligence of other party Require third-party provider to carry insurance and include funeral home as additional insured NFDA Sample Contract 23 G. Crematory Due Diligence File Documentation and reports for every third party crematory 1. Crematory Records Request 2. Crematory Interview Questions 3. Follow-up Notes to Interview 4. Crematory Inspection Checklist 5. Follow-up Notes to Inspection 24

9 NFDA Live Webinar January 8, p.m. CT Page 9 II. Crematory Records Request Review Licenses and Operational Records of Crematory For each crematory used, review records for: Authorization under state law Trained operators Comprehensive operational procedures Sufficient liability insurance Appropriate authorization forms 25 II. Crematory Records Request Review Licenses and Operational Records of Crematory Refusal to provide records or incomplete records = red flag. Follow up! Maintain records in due diligence file Log request, receipt review, deficiencies and resolution Update at least once a year 26 II. Crematory Records Request Review Licenses and Operational Records of Crematory Consistency is key! 27

10 NFDA Live Webinar January 8, p.m. CT Page 10 III. Crematory Interview Interview Crematory Management Obtain Information - Personnel - Facilities Operations Make appointment in advance Take written notes Address concerns Document! Keep interview answers, notes, follow-up inquiries, and responses in due diligence file 28 IV. Crematory Interview Inspection of Crematory Final step in due diligence process Unannounced During business hours At least once a year Use Crematory Inspection Checklist Address concerns Maintain checklist in crematory due diligence file 29 Questions 30

11 NFDA Live Webinar January 8, p.m. CT Page 11 T. Scott Gilligan NFDA General Counsel Mike Nicodemus NFDA Vice President Cremation Services Thank you! Remember: Evaluation Survey (via ) CE Attendance Form (last page in handout) Jan 22 Feb 12 Register online now for these webinars Both top-rated presentations at 2014 NFDA Convention! The Removal: Professional Solutions for Challenging Circumstances Bernard F. Delaney, Mortuary Services, Inc. Getting to the Heart of Customer Satisfaction Ron Rosenberg, QualityTalk, Inc. 32

12 NFDA Live Webinar January 8, p.m. CT Page 12 Page 12 is blank. Sample Indemnification Agreement follows on page 13.

13 NFDA Live Webinar January 8, p.m. CT Page 13 NFDA SAMPLE FUNERAL HOME AND CREMATORY SERVICE AND INDEMNIFICATION AGREEMENT I. PARTIES: Funeral Home: Address: Contact: Phone No.: Crematory: Address: Contact: Phone No.: II. CREMATION SERVICES: The FUNERAL HOME retains the CREMATORY to provide cremation services for deceased human remains that FUNERAL HOME sends to the CREMATORY from time-to-time. This Agreement will set forth the terms and conditions between the FUNERAL HOME and CREMATORY regarding those cremation services. III. FUNERAL HOME OBLIGATIONS: For each deceased human body that the FUNERAL HOME delivers to the CREMATORY for cremation services, the FUNERAL HOME agrees to undertake all of the following: (A) Authorization. In accordance with law, the FUNERAL HOME shall obtain (Name of State) all necessary authorizations for the cremation services. The FUNERAL HOME shall use the cremation authorization form provided by the CREMATORY and will have the cremation authorization form completely filled out, executed by the Authorizing Agent, and provided to the CREMATORY when the remains are delivered. (B) Identification. The FUNERAL HOME shall arrange to have the deceased human remains identified by the Authorizing Agent or his or her designee, with the identification documented on the cremation authorization form. (C) Medical Devices. The FUNERAL HOME shall remove any implanted medical devices which are disclosed to the FUNERAL HOME on the cremation authorization form and identified as a hazard to the personnel or equipment of the CREMATORY. National Funeral Directors Association

14 NFDA Live Webinar January 8, p.m. CT Page 14 (D) Transportation. The FUNERAL HOME shall transport the deceased human remains to the CREMATORY for cremation services. At the time of delivery, the FUNERAL HOME shall provide the cremation authorization form and any cremation or other permits required by law. The FUNERAL HOME (Name of State) shall execute the receipt referred to in Section IV.A below upon delivery of the deceased human remains. (E) Disposition of Cremated Remains. Following notification by the CREMATORY that the cremation has taken place, the FUNERAL HOME shall arrange with the CREMATORY for the pickup of the cremated remains from the CREMATORY. The FUNERAL HOME shall execute the necessary receipt documenting the pickup and the receipt of the cremated remains. The FUNERAL HOME shall carry out the disposition of the cremated remains that are specified in the cremation authorization form or any amendments thereto. IV. CREMATORY OBLIGATIONS: In providing cremation services to the FUNERAL HOME, the CREMATORY agrees as follows: (A) Licensing. The CREMATORY warrants and represents to the FUNERAL HOME that its crematory facility and its operators possess all necessary licenses and certifications to lawfully carry out the cremation of human remains. (B) Identification. During its possession of the human and cremated remains, the CREMATORY shall insure that the human and cremated remains are identified at all times with all necessary documentation and back-up identification systems. The cremated remains provided back to the FUNERAL HOME by the CREMATORY shall contain all necessary identification. (C) Cremation. The CREMATORY shall carry out the cremation and pulverization of the human remains in compliance with all legal requirements and in a professional manner that insures the proper and dignified handling of the human and cremated remains at all times. (D) Packaging and Delivery. The CREMATORY shall place the cremated remains in the temporary container used by the CREMATORY, place identification in and on the temporary container, deliver the temporary container to the FUNERAL HOME personnel who picks up the cremated remains from the CREMATORY. In the event that the volume of cremated remains exceeds the capabilities of the temporary container, the cremated remains

15 NFDA Live Webinar January 8, p.m. CT Page 15 shall be placed in two temporary containers which shall both be marked to identify that there are two temporary containers and which both shall contain the full identification required. The temporary container or containers containing the cremated remains shall only be turned over to the FUNERAL HOME personnel at the CREMATORY utilizing a receipt which is signed both by the CREMATORY and the FUNERAL HOME with a copy provided to the FUNERAL HOME. (E) Records. For a period of at least twenty (20) years after each cremation carried out for the FUNERAL HOME, the CREMATORY shall maintain records and documentation showing when and from whom it took possession of the cremated remains, when and who carried out the cremation and processing, what container was used, and when the container was turned over to personnel of the FUNERAL HOME and a receipt showing time, date and the FUNERAL HOME personnel who took possession of the cremated remains. (F) Prohibited Practices. In carrying out cremations for the FUNERAL HOME, the CREMATORY agrees that it shall not engage in any of the following practices: 1. The unauthorized, simultaneous cremation of more than one person within the same cremation chamber unless the CREMATORY has received specific written authorization to do so from all authorizing agents for the human remains to so be cremated. 2. Using the cremation chamber for any purpose other than the cremation of human remains. 3. Introducing a second dead human body into a cremation chamber before reasonable efforts have been made to remove all fragments of the cremated remains from the preceding cremation (incidental and unavoidable residue remaining in the cremation chamber after a cremation does not constitute a violation of this provision). 4. Failing to make a proper disposition of any accumulated human residue from any retort, processor, container or other equipment used in cremation. The CREMATORY shall dispose of all accumulated human residue in a cemetery in accordance with the applicable laws and regulations. 5. Failing to make proper disposition of any accumulated non-human residue recovered after the cremation; provided, however, that the CREMATORY may recycle metals and other non-human residue if specifically authorized in the cremation authorization form.

16 NFDA Live Webinar January 8, p.m. CT Page 16 V. PRICE: The prices for the CREMATORY s cremation services are listed on Schedule A attached hereto and made a part hereof. The CREMATORY agrees not to change its prices set forth on Schedule A without providing FUNERAL HOME at least sixty (60) days prior written notice of the price change together with a new price schedule. Following the sixty (60) day period notice, the new price schedule provided by the CREMATORY shall be attached to this Agreement as the new Schedule A. VI. MUTUAL INDEMNIFICATION: The FUNERAL HOME agrees to indemnify and hold harmless the CREMATORY and its officers, directors, employees, and agents from all suits, claims, demands, damages, interest, expenses, including reasonable attorney s fees, actions, causes of action or claims arising or in connection with the failure of the FUNERAL HOME, its officers, directors, employees, or agents to carry out their respective obligations under this Agreement, including, but not limited to, claims by any third parties. The CREMATORY agrees to indemnify and hold harmless the FUNERAL HOME and its officers, directors, employees, and agents from all suits, claims, demands, damages, interest, expenses, including reasonable attorney s fees, actions, causes of action or claims arising or in connection with the failure of the CREMATORY, its officers, directors, employees, or agents to carry out their respective obligations under this Agreement, including, but not limited to, claims by any third parties. VII. INSURANCE: During the term of this Agreement, the CREMATORY shall list the FUNERAL HOME on its errors and omissions (malpractice) insurance policy as an additionally insured and provide a certificate of insurance to the FUNERAL HOME that documents the listing of the FUNERAL HOME as an additional insured. VIII. TERM: This Agreement shall commence on the date that it is executed by both the FUNERAL HOME and the CREMATORY and shall continue until either party elects to terminate the Agreement by written notice to the other party. Termination of the Agreement, regardless of cause shall not terminate the parties mutual obligations under Article V above.

17 NFDA Live Webinar January 8, p.m. CT Page 17 IX. MISCELLANEOUS: This Agreement shall be governed by the laws of the State of. This Agreement (Name of State) may only be modified or amended in a writing executed by both parties. This Agreement contains the entire and complete understanding between the parties hereto and all prior representations, understandings and warranties are superseded by this Agreement. This Agreement is binding upon the successors and assigns hereto. FUNERAL HOME: Date: By: CREMATORY: Date: By: 20833

18 NFDA Live Webinar January 8, p.m. CT Page 18 Page 18 is blank. The CE Attendance Record follows on page 19.

19 NFDA Live Webinar Webinar. January Safeguarding 8, 2015 Your 1-2 p.m. Business CT from Cremation Liability Page 19 Presenters: T. Scott Gilligan, NFDA General Counsel Mike Nicodemus, NFDA Vice President, Cremation Services Thursday, January 8, p.m. CT 1 CE hour City/ST _ Firm Name address of First Registrant Firm s phone number Required to verify CE hours Instructions 1. Please fill in information at the top of this form. 2. Each funeral director applying for CE must complete and sign this form. 3. Immediately following program, fax completed form to , or mail to NFDA Professional Development, Bishop's Dr., Brookfield, WI CE Attendance Record CE certificates will be sent to your address please include below. Participant Name Print, please Participant Signature 1. FD License/s # & State/s Required APFSP # (if Academy member) Your Required 2. Your Required 3. Your Required 4. Your Required Additional applicants for CE hours must have preregistered ($60 member/$105 nonmember) for NFDA to process CEs with state licensing boards. CE verification from NFDA will be received via within 2 weeks of webinar date. If this presents a problem due to licensing deadlines, please call Jackie Lindberg at NFDA ( , extension 1568). Participation times will be verified. I verify that above-listed participants attended this NFDA Webinar for the full hour. Signature of Funeral Home Owner or Manager Date Watch for your Evaluation Survey, which will come via . Thank you.