State Codes and Statutes

State Codes and Statutes

Statutes > North-carolina > Chapter_90 > GS_90-210_65

§ 90‑210.65.  Refund ofpreneed funeral funds.

(a)        Within 30 days ofreceipt of a written request from the purchaser of a revocable preneed funeralcontract who has trust funds deposited with a financial institution pursuant toG.S. 90‑210.61(a), the financial institution shall refund to the preneedfuneral contract purchaser the entire amount held by the financial institution.

(b)        Within 30 days ofreceipt of a written notice of cancellation of any prearrangement insurancepolicy purchased pursuant to G.S. 90‑210.61(a)(3), the issuing insurancecompany shall pay such amounts to such person or persons as is provided underthe terms of the prearrangement insurance policy.

(c)        After making refundpursuant to this section and giving notice of the refund to the preneedlicensee, the financial institution or insurance company shall be relieved fromall further liability.

(d)        Notwithstanding anyother provision of this Article, if a preneed funeral contract is revoked ortransferred following the death of the preneed funeral contract beneficiary,the purchaser of the preneed funeral contract may be charged according to thecontracting preneed licensee's price lists for any services performed ormerchandise provided prior to revocation or transfer.

(e)        This section shallnot apply to irrevocable preneed funeral contracts. Irrevocable preneed funeralcontracts may only be revoked or any proceeds refunded by the order of a courtof competent jurisdiction, except as follows:

(1)        The Board may orderan irrevocable contract revoked when the preneed contract beneficiary is nolonger domiciled in this State and has submitted a written copy to the Board ofa new preneed funeral contract executed under the laws of the state where thepreneed contract beneficiary is domiciled. Upon receipt of the Board's order,the original contracting preneed licensee shall immediately follow theprovisions of G.S. 90‑210.63 to transfer the funds to the successor firm.

(2)        Irrevocable preneedfuneral contracts purchased pursuant to G.S. 90‑210.61(a)(3) shall alsobe revocable when the underlying insurance policy lapses or is otherwisecancelled and the lapsed or cancelled policy no longer provides any funding forthe preneed funeral contract. (1969, c. 187, s. 3; 1981 (Reg. Sess., 1982), c. 1336,s. 2; 1983, c. 657, s. 3; 1985, c. 12, ss. 1, 2; 1991 (Reg. Sess., 1992), c.901, s. 2; 2003‑420, s. 13; 2007‑531, s. 11.)