There's often a big problem with prepaid funeral arrangements: When it's time for undertakers to deliver services, the consumer most familiar with the preneed contract isn't in a position to provide much oversight.

So that burden falls on survivors who, because of shock or grief or a fear of looking like cheapskates, might be unable or unwilling to make sure the contract is followed to the letter.

Yet they need to make sure funeral homes don't use events like the downfall of Clayton-based National Prearranged Services as excuses to wiggle out of their legal obligations.

That's the warning from Missouri's Department of Insurance, Financial Institutions and Professional Registration. The agency licenses funeral directors, and it wants to hear from consumers if they're getting cheated on prepaid services.

A 50-count indictment made public last month accuses the top bosses at National Prearranged of embezzling and laundering money that was supposed to be used to pay funeral expenses for about 150,000 consumers.

National Prearranged acted as a selling agent for funeral homes. Its owners and executives are accused of diverting money that was supposed to be held in reserve and spending it on investments and their own compensation.

If that's true, they victimized funeral homes. But consumers shouldn't pay the price. In most cases, they won't.

That's because most plans sold by National Prearranged were insured. One company that provided the insurance was owned by the same people, and it also went under. But there's a backup protection: state insurance-guarantee associations.

The associations pay the funeral homes that agreed to provide the prearranged services. But, often, the funeral homes won't get as much as they would have if National Prearranged had stayed afloat.

This means that funeral homes need to eat some costs. Depending on the contract, the specific funeral arrangements stipulated and how long ago the deal was inked, those costs can be considerable.

To make matters worse for funeral homes that partnered with National Prearranged, the company sold some so-called "orphan contracts" that weren't insured at all. Under these plans, funeral homes could end up paying the full cost.

Some area funeral homes are on the hook for thousands of National Prearranged contracts, and there's a big incentive for unscrupulous ones to try to squeeze mourning relatives for extra payment on what should have been paid-in-full arrangements.

"We have a handful of these complaints about funeral homes not honoring (National Prearranged) contracts," said Travis Ford, a spokesman for the department of insurance. "(But) in the vast majority of cases, we believe funeral homes are honoring them, even if it means a financial loss."

Still, the department is taking consumer complaints seriously, he says.

That's because even if a small fraction of funeral homes try to violate the terms of a preneed contract, that could involve lots of consumers. National Prearranged sold more than 50,000 preneed plans in Missouri that haven't yet been used, Ford said.

Missouri consumers who think a funeral home isn't honoring the terms of a preneed contract should complain to the State Board of Embalmers and Funeral Directors (1-573-751-0813); Illinois residents should call the Division of Professional Regulation (1-312-814-6910).

WANT TO prepay?

If you're considering buying a preneed funeral plan, consider these tips from "Life Choices," a booklet about end-of-life decisions produced by the Missouri Attorney General's Office. (It's available online at ago.mo.gov/publications, or by calling 1-800-392-8222.)

• Beware of any plan that doesn't specify exactly what you get and how much it will cost. To be legal, preneed contracts need to include detailed information about the merchandise and services to be provided and a written price list. If a plan doesn't include that information, it could be a scam.

• Think twice before signing any agreement that requires you to waive your legal right to cancel the plan at any time. If you hold on to that right, you may be entitled to a partial refund of what you've paid into the plan if you end up defaulting on payments.

• Make sure the plan identifies the preneed trust where your payments will be deposited, including the name and address of the trustee.

• After you begin payments, contact the trustee directly to make sure your money is going where it's supposed to, or ask for a written statement of all deposits made into the trust on your behalf. (Under Missouri law, the plan's seller must provided that information upon request.)