The regulations under EC2025-1029, enacted pursuant to the Prearranged Funeral Services Act, establish a framework governing the operation, financial security, and record-keeping of vendors offering prearranged funeral services in Prince Edward Island. The regulations require vendors to provide security in the form of a bond to protect consumers who enter into prearranged funeral plans. The bond must be executed in favor of the Board and can originate from a guarantee company authorized in Prince Edward Island, a guarantor with collateral security, or a third party subject to Board-approved conditions. Personal bonds from individuals must include collateral security as prescribed. The minimum bond amount is set at $20,000, and any collateral must be maintained at market value equal to or exceeding the bond’s face value. The regulations also provide a procedure for bond cancellation, requiring two months’ notice to both the Board and the vendor. Upon bond or licence cancellation, the Board may return the bond and collateral to the relevant party after a two-year period, provided the bond has not been forfeited.

Forfeiture of a bond occurs if a vendor fails to fulfill the terms of a prearranged funeral plan or to repay funds as required by the Act or these regulations. When a bond secured by collateral is forfeited, the Board may sell the collateral at its current market price. The proceeds from a bond or its collateral must be held for a two-year period unless all claims have been satisfied through public advertising or affidavits from claimants. The Board is authorized to assign forfeited bonds, transfer collateral security, and distribute recovered funds to individuals owed money under the plan. If proceeds are insufficient to cover all claims, the Board distributes them proportionally, and its decision on distribution is final. Excess proceeds beyond claims may be returned to the person who provided the bond or collateral.

Record-keeping obligations are extensive. Vendors must maintain detailed records of each prearranged funeral plan, including plan date, purchaser information, the person for whom the plan applies, the date of service or plan termination, assignment to another vendor, and the sales representative involved. Additionally, vendors must keep proof of deposit for funds held in trust under the Act, copies of all receipts and invoices identifying services under prearranged plans, and detailed records of all money received, deposited, or withdrawn in connection with these plans. All bank statements, pass books, and cashed checks relating to the business must also be retained. Vendors are required to keep an itemized list of services offered, with prices and descriptions, and maintain one copy of each prearranged funeral plan with the same identifying number as the original. The regulations allow for the retention of any other documents relevant to the vendor’s business operations under a prearranged funeral plan, ensuring transparency, accountability, and consumer protection.

EC2025-1029 establishes a regulatory structure intended to protect consumers engaging in prearranged funeral arrangements, ensure financial security through bonds and collateral, provide clear procedures for bond forfeiture and distribution, and impose rigorous record-keeping obligations on vendors to maintain accountability and trust within the industry.

Prince Edward Island (1029/2025) November 11, 2025
Disclaimer: Insights are for informational purposes only and do not reflect RRI’s official position or constitute legal opinion.