(1) An individual whose name appears in the name of a funeral establishment is considered to be actively engaged in the practice of funeral directing or the practice of mortuary science and must be a holder of a license for the practice of mortuary science.

  (2) A business entity that is licensed as a funeral establishment under section 1806(3) may use or continue to use the name of the licensed funeral establishment after the death or retirement of a member, officer, or director if the death or retirement is reported to the department not more than 30 days after the death or retirement and if the name of the licensed funeral establishment was used prior to the death or retirement of the member, officer, or director.