PEER investigated the February 1, 1984, purchase of burial insurance from Gulf National Life Insurance Company for 288 Hudspeth clients and reviewed the disposition of death benefits for policyholders from February 1984 to April 1989. PEER found no evidence of illegal activities on the part of Hudspeth, Gulf National, or Baldwin-Enochs Funeral Home involving burial insurance. However, Hudspeth exercised insufficient control over burial benefits paid on behalf of deceased wards of the state.
PEER also found that in 1978 Hudspeth officials placed client money into a “pre-need trust account” for clients’ funerals which remained on deposit for eleven years with little benefit to its participants. On June 26, 1989, Hudspeth notified PEER that Baldwin-Enochs (now Baldwin-Lee) returned the $14,355.42 balance to the center for repayment to clients or their heirs.
For a paper copy of this report, contact PEER by telephone at 601-359-1226 or by e-mail at reports@peer.ms.gov.