State Codes and Statutes

State Codes and Statutes

Statutes > North-carolina > Chapter_90 > GS_90-210_62

§ 90‑210.62.  Types ofpreneed funeral contracts; forms.

(a)        A preneed licenseemay offer standard preneed funeral contracts and inflation‑proof preneedfuneral contracts. A standard preneed funeral contract applies the trust fundsor insurance proceeds to the purchase price of funeral services and merchandiseat the time of death of the contract beneficiary without protection againstpotential future price increases. An inflation‑proof contract establishesan agreement between the preneed licensee and the purchaser for funeralservices and merchandise without regard to potential future price increases.Upon written disclosure to the purchaser of a preneed funeral contract,inflation‑proof contracts may permit the preneed licensee to retain allof the preneed funeral contract trust funds on deposit, and all insuranceproceeds, even those in excess of the retail cost of goods and servicesprovided, when the preneed licensee has fully performed the preneed funeralcontract. Preneed funeral contracts may be revocable or irrevocable, at theoption of the preneed funeral contract purchaser.

(b)        The Board mayprescribe forms for preneed funeral contracts consistent with this Article. Allcontracts must be in writing on forms prescribed by the Board. Any use or attempteduse of any oral preneed funeral contract or any written contract in a form notprescribed by the Board shall be deemed a violation of this Article. (1991 (Reg. Sess., 1992), c.901, s. 2; 2007‑531, s. 8.)