Four Laws

Protecting North Carolinians from Insurance Fraud

The following information, in part, are the North Carolina Funeral Service and Cremation Laws and regulations.  This information is being made available to you so that you can become fully aware of how the State of North Carolina protects consumers who choose to fund their pre-arrangements.  Not all states have laws in place which protects their citizens, therefore we are proud to provide this to you.

90-210.61.  Deposit or application of preneed funeral funds.

Preneed funeral funds are subject to the provisions of this Article and shall be deposited or applied as follows…

…If the preneed funeral contract purchaser chooses to fund the contract by a prearrangement insurance policy, the preneed licensee shall apply all funds received for this purpose to the purchase of the prearrangement insurance policy within five business days.  The preneed licensee shall notify the insurance company of the name of each preneed funeral contract purchaser and the amount of each payment when the prearrangement insurance policy or policies are purchased.

90-210.66. Recovery fund.

There is established the Preneed Recovery Fund.  The Fund shall be administered by the Board.  The purpose of the Fund is to reimburse purchasers of preneed funeral contracts who have suffered financial loss as a result of the malfeasance, misfeasance, default, failure or insolvency of any licensee under this Article, and includes refunds due a preneed funeral contract beneficiary from a preneed licensee who has retained any portion of the preneed funeral contract payments pursuant to G.S. 90-210.61 (a) (2).

From the fee for each preneed funeral contract as required by G.S. 90-210.67(d), the Board shall deposit two dollars ($2.00) into the Fund.  The Board may suspend the deposits into the Fund at any time and for any period for which the Board determines that a sufficient amount is available to meet likely disbursements and to maintain an adequate reserve.

All sums received by the Board pursuant to this section shall be held in a separate account known as the Preneed Recovery Fund.  Deposits to and disbursements from the Fund account shall be subject to rules established by the Board…

90-210.67. Application for license.

No person may offer or sell preneed funeral contracts or offer to make or make any funded funeral prearrangements without first securing a license from the Board.  Notwithstanding any other provision of law, any person who offers to sell or sells a casket to be furnished or delivered at a time determinable by the death of the person whose body is to be disposed of in the casket, shall first comply with the provisions of this Article.  There shall be two types of licenses:  a preneed funeral establishment license and a preneed sales license…

90-210.68.  Licensee’s books and records: notice of transfers, assignments and termination’s.

Every preneed licensee shall keep for examination by the Board accurate accounts, books and records in this State of all preneed funeral contract and prearrangements insurance policy transactions, copies of all agreements, insurance policies, instruments of assignment, the dates and amounts of payments made and accepted thereon, the names and addresses of the contraction financial institutions holding preneed funeral trust funds and insurance companies issuing prearrangement insurance policies.  The Board, its inspectors appointed pursuant to G.S. 90-210.24 and it s examiners, which the Board may appoint to assist in the enforcement of this Article, may during normal hours of operation and periods shortly before or after normal hours of operations, investigate the books, records and accounts of any licensee under this Article with respect to trust funds, preneed funeral contracts and prearrangement insurance policies…

The information provided above is only intended to brief you on some of the laws in North Carolina as they pertain to pre-fundings your prearrangements.  For a full disclosure of North Carolina funeral laws and regulation please contact the North Carolina Board of Funeral Service @ 919 733-9380