What is required from the seller when a purchaser is in default of payment for over 60 days on a preneed?

In the context of preneed contracts in Missouri, when a purchaser defaults on payments for over 60 days, the seller is typically required to cancel the contract. This action is taken to protect both parties and ensure that the terms of the agreement are upheld. Preneed contracts are legally binding agreements, and failure to adhere to the payment schedule can lead to cancellation as stipulated by the terms of the contract and relevant regulations.

The requirement to cancel the contract serves as a formal acknowledgment that the obligations set forth have not been met. This is particularly important in the funeral services industry, as it helps manage the financial integrity of the seller and provides a clear framework for handling defaults. By canceling the contract, the seller can also potentially offer the preneed services to other customers, thereby ensuring that their business continues to operate smoothly.

Other potential actions, such as notifications or referrals to collections, don't address the contractual obligations directly and may not be legally required steps in this scenario. Thus, the cancellation of the contract is the proper action that aligns with both legal expectations and the operational practices in the funeral service industry.