What is required for a cemetery authority selling prearrangement contracts?

For a cemetery authority selling prearrangement contracts in Washington, the establishment of prearrangement trust funds is essential. This requirement ensures that the funds received from prearranged contracts are set aside and managed in a manner that protects the interests of consumers. The funds must be placed in a trust, which is subject to specific regulations to ensure that they are used appropriately for the intended purposes, such as providing the promised services when the time comes.

This mechanism is designed to provide financial security and assurance to consumers that their investment in prearranged contracts will be honored in the future, thereby safeguarding their rights and interests. The regulations surrounding these trust funds include stipulations on how they must be managed, reported on, and possibly audited, ensuring a layer of accountability for the cemetery authority.

While other components, such as marketing materials or annual audits, may play a role in the overall operation of a cemetery authority, they do not directly relate to the specific requirements for selling prearrangement contracts. The primary focus of the law is to ensure financial protection through the establishment of trust funds, which is why this option is the correct answer.