What action is taken if the compensation fund drops below 1 million dollars?

If the compensation fund drops below one million dollars, operators are required to pay increased fees to ensure that the fund is sufficiently replenished. This mechanism is in place to maintain the fund’s viability and ability to compensate consumers for losses they may incur due to the failure of a funeral service provider. By adjusting the fees that operators are required to pay, the system can quickly respond to financial needs and ensure that there are adequate resources to serve the public interest in the face of potential claims.

This system of increased fees serves as a proactive measure to manage and stabilize the fund, ensuring that it remains solvent and capable of fulfilling its purpose. Other measures, such as halting fees or relying on donations, would not adequately secure the financial health of the fund or guarantee its ability to protect consumers.