State Codes and Statutes

State Codes and Statutes

Statutes > North-carolina > Chapter_90 > GS_90-210_106

§ 90‑210.106.  Authority of foreign or domesticmutual burial association or domestic or foreign insurance company to purchase,merge or consolidate with North Carolina mutual burial associations.

(a)        Any mutual burial association or insurance company operatingpursuant to the laws of this State or any other state may purchase the assetsof, merge, or consolidate with a North Carolina chartered mutual burialassociation in accordance with the laws of this State and any rules promulgatedby the Board of Funeral Service to protect the interest of members of mutualburial associations prior to the purchase, merger, or consolidation of theassociation.

(b)        Notwithstanding any provision of Chapter 55 or Chapter 55A,any domestic or foreign insurance company which if organized in North Carolinawould have to be organized under Chapter 55 may merge or consolidate with anydomestic mutual burial association. When a domestic or foreign insurancecompany consolidates or merges with a domestic mutual burial association andsells insurance or burial benefits in excess of two hundred dollars ($200.00),it shall be subject to all of the provisions of the insurance laws of NorthCarolina.

(c)        If the assets and liabilities of a North Carolina mutualburial association are purchased, and no merger, consolidation or dissolutionis effectuated in connection with the purchase, the management andadministrative operations of the North Carolina mutual burial association shallbe transferred to the purchasing entity.

(d)        In any purchase, merger, or consolidation pursuant to thissection, the membership of the mutual burial association shall be guaranteedcoverage in the amounts held by each member at the time of such purchase,merger, or consolidation. During the life of the member, this coverage shallnot exceed the annual rate charged by the mutual burial association that isbeing purchased, merged, or consolidated. An insurance company which purchases,merges with, or consolidates with a North Carolina mutual burial association shallestablish and maintain life insurance reserves in accordance with the insurancelaws of North Carolina for those burial insurance policies existing at the timeof the purchase, merger, or consolidation. A North Carolina mutual burialassociation or foreign mutual burial association which purchases, merges with,or consolidates with a North Carolina mutual burial association shall establishand maintain burial insurance reserves in accordance with the burial insurancelaws of North Carolina for those burial insurance policies existing at the timeof the purchase, merger, or consolidation. (1981, c. 989, s. 5; 1983, c. 766; 1987, c. 864, s. 12; 1997‑313,s. 5; 2003‑420, ss. 1, 17(b).)