State Codes and Statutes

State Codes and Statutes

Statutes > North-carolina > Chapter_90 > GS_90-210_63

§ 90‑210.63.  Substitution of licensee.

(a)        If the preneed funeral contract is irrevocable, the preneedfuneral contract purchaser, or after his death the preneed funeral contractbeneficiary or his legal representative, upon written notice to the financialinstitution or insurance company and the preneed licensee who is a party to thepreneed funeral contract, may direct the substitution of a different funeralestablishment to furnish funeral services and merchandise.

(1)        If the substitution is made after the death of the preneedfuneral contract beneficiary, a funeral establishment providing any funeralservices or merchandise need not be a preneed licensee under this Article toreceive payment for such services or merchandise. The original contracting preneedlicensee shall be entitled to payment for any services or merchandise providedpursuant to G.S. 90‑210.65(d). If the substitution is made before thedeath of the preneed funeral contract beneficiary, the substitution must be toa preneed licensee. If the preneed funeral contract is funded by a trustdeposit or deposits, the financial institution shall immediately pay the fundsheld to the original contracting preneed licensee.

(2)        The original contracting preneed licensee shall immediatelypay all funds received to the successor funeral establishment designated.Regardless of whether the substitution is made before or after the death of thepreneed funeral contract beneficiary, the original contracting preneed licenseeshall not be required to give credit for the amount retained pursuant to G.S.90‑210.61(a)(2), except when there was a substitution under G.S. 90‑210.68(d1)and (e). Upon making payments pursuant to this subsection, the financialinstitution and the original contracting preneed licensee shall be relievedfrom all further contractual liability thereon.

(3)        If the preneed funeral contract is funded by aprearrangement insurance policy, the insurance company shall not pay any of thefunds until the death of the preneed funeral contract beneficiary, and theinsurance company shall pay the funds in accordance with the terms of thepolicy.

(b)        The person giving notice of the substitution of a preneedlicensee and the successor preneed licensee shall enter into a new preneedfuneral contract for the funds transferred, and this Article shall apply,including the duty of the successor preneed licensee to deposit all of thefunds in a financial institution if the death of the preneed funeral contractbeneficiary has not occurred. Nothing in this subsection shall be construed topermit the use of the transferred funds to purchase a prearrangement insurancepolicy, nor to permit an irrevocable preneed funeral contract to be maderevocable or to result in the payment of any of the transferred funds to the preneedfuneral contract purchaser or to the preneed funeral contract beneficiary orhis estate, except as provided by G.S. 90‑210.64(b). (1991 (Reg. Sess., 1992), c. 901, s. 2; 1993, c. 242, s. 1; 1997‑399,s. 24; 2003‑420, s. 11.)