State Codes and Statutes

State Codes and Statutes

Statutes > North-carolina > Chapter_90 > GS_90-210_64

§ 90‑210.64.  Death ofpreneed funeral contract beneficiary; disposition of funds.

(a)        After the death ofa preneed funeral contract beneficiary and full performance of the preneedfuneral contract by the preneed licensee, the preneed licensee shall promptlycomplete a certificate of performance and present it to the financialinstitution that holds funds in trust under G.S. 90‑210.61(a)(1) or tothe insurance company that issued a preneed insurance policy pursuant to G.S.90‑210.61(a)(3). Upon receipt of the certificate of performance orsimilar claim form, the financial institution shall pay the trust funds to thecontracting preneed licensee and the insurance company shall pay the insuranceproceeds according to the terms of the policy. Within 10 days after receivingpayment, the preneed licensee shall file a copy of the certificate ofperformance or other claim form to the Board.

(b)        Unless otherwisespecified in the preneed funeral contract, the preneed licensee shall have noobligation to deliver merchandise or perform any services for which payment infull has not yet been deposited with a financial institution or that will notbe provided by the proceeds of a prearrangement insurance policy. Any suchamounts received which do not constitute payment in full shall be refunded tothe estate of the deceased preneed funeral contract beneficiary or creditedagainst the cost of merchandise or services contracted for by a representativeof the deceased. Any balance remaining after payment for the merchandise andservices as set forth in the preneed funeral contract shall be paid to theestate of the preneed funeral contract beneficiary or the prearrangementinsurance policy beneficiary named to receive any such balance. Provided,however, unless the parties agree to the contrary, there shall be no refund tothe estate of the preneed funeral contract beneficiary of an inflation‑proofpreneed funeral contract except as required by G.S. 90‑210.63A(c).

(c)        In the event thatany person other than the contracting preneed licensee performs any funeralservice or provides any merchandise as a result of the death of the preneedfuneral contract beneficiary, the financial institution shall pay the trustfunds to the contracting preneed licensee and the insurance company shall paythe insurance proceeds according to the terms of the policy. The preneedlicensee shall, subject to the provisions of G.S. 90‑210.65(d),immediately pay the monies so received to the other provider.

(d)        When the balance ofa preneed funeral fund is one hundred dollars ($100.00) or less and is payableto the estate of a deceased preneed funeral contract beneficiary and there hasbeen no representative of the estate appointed, the balance due may be paiddirectly to a beneficiary or to the beneficiaries of the estate. If the balanceof a preneed funeral fund exceeds one hundred dollars ($100.00) or is notpayable to the estate, the balance must be paid into the office of the clerk ofsuperior court in the county where probate proceedings could be filed for thedeceased preneed funeral contract beneficiary.

(e)        Upon thefulfillment of a preneed contract, all of the following items shall becompleted within 30 days:

(1)        The contractingpreneed licensee must submit a certificate of performance or similar claim formto the financial institution holding the preneed trust funds and close thepreneed account.

(2)        The proceeds of thistrust account shall be distributed according to the terms of the preneedcontract.

(3)        A completed copy ofthe certificate of performance or similar claim form evidencing the finaldisposition of any financial institution preneed trust account funds must befiled with the Board by the contracting licensee. (1991 (Reg. Sess., 1992), c.901, s. 2; 1997‑399, s. 25; 2001‑294, s. 9; 2003‑420, s. 12;2007‑531, s. 10.)