What must an insurance or annuity policy include to fund the preneed funeral contract?

To fund a preneed funeral contract, the insurance or annuity policy must include the identification of the contract provider and demonstrate compliance with Virginia code. This requirement is crucial because it ensures that the entity providing the funding is properly identified, which protects the interests of the consumer and ensures regulatory compliance. In Virginia, specific laws govern preneed funeral contracts, and having clear identification of the contract provider allows for accountability and adherence to these regulations.

Having the contract provider clearly stated assures that all parties understand who is responsible for the future services or products promised in the preneed contract. Compliance with state code is essential for ensuring all provisions meet legal standards, safeguarding both the consumer and the provider in the transaction.

The other choices do not encompass the necessary legal and regulatory aspects required to secure a preneed funeral contract funding. Solely listing an insurance agent, agent license numbers, or the residency of the contract seller does not provide the full context or security needed for this kind of financial planning.