Michigan Mortuary Science Practice Exam

A Michigan non-profit corporation can be an escrow agent if the majority interest is held by how many funeral homes?

1. 250+

2. 100+

3. 150+

4. 200+

The correct answer is: 250+

In Michigan, a non-profit corporation can act as an escrow agent for funeral homes, provided that the majority interest in that corporation is held by a significant number of funeral homes that allows them to maintain control and governance over the escrow accounts. The requirement of 250 or more funeral homes holding the majority interest is in place to ensure that the escrow agent is representative of the funeral industry and can effectively manage funds in a manner that reflects the interests of a substantial portion of the profession. This large number of participating funeral homes helps to ensure a broad and diverse oversight, reducing any potential conflicts of interest and providing a level of accountability that might not be achievable with a smaller number of participants. By requiring such a robust majority, the regulation emphasizes the need for a strong institutional framework around the management of escrow funds related to funeral services, which ultimately serves both the service providers and the families they serve.