Who typically requires the contract seller to submit annual reports?

The correct answer is state regulations, as these often establish the legal framework for various practices within the funeral industry, including the requirement for contract sellers to submit annual reports. State regulations are designed to protect consumers and ensure that funeral service providers operate in compliance with the law. These regulations can specify the need for transparency and accountability in business practices, which is why annual reporting may be mandated.

In many states, including Tennessee, regulatory agencies oversee the conduct of funeral homes and related businesses, ensuring they meet specific standards of operation. This oversight can involve verifying financial stability, ethical practices, and compliance with consumer protection laws. Thus, annual reports can be an essential part of ensuring that businesses remain solvent and operate fairly within the established legal parameters.

While federal law and industry standards may indirectly influence business practices, they do not typically impose specific requirements for annual reports in the same direct manner that state regulations do. Furthermore, while funeral home associations may provide guidance or best practices, they lack the legal authority to mandate annual reporting as state regulations do.