State Codes and Statutes

State Codes and Statutes

Statutes > North-carolina > Chapter_90 > GS_90-210_66

§ 90‑210.66.  Recovery fund.

(a)        There is established the Preneed Recovery Fund. The Fundshall be administered by the Board. The purpose of the Fund is to reimbursepurchasers of preneed funeral contracts who have suffered financial loss as aresult of the malfeasance, misfeasance, default, failure or insolvency of anylicensee under this Article, and includes refunds due a preneed funeralcontract beneficiary from a preneed licensee who has retained any portion ofthe preneed funeral contract payments pursuant to G.S. 90‑210.61(a)(2).

(b)        From the fee for each preneed funeral contract as requiredby G.S. 90‑210.67(d), the Board shall deposit two dollars ($2.00) intothe Fund. The Board may suspend the deposits into the Fund at any time and forany period for which the Board determines that a sufficient amount is availableto meet likely disbursements and to maintain an adequate reserve.

(c)        All sums received by the Board pursuant to this sectionshall be held in a separate account known as the Preneed Recovery Fund.Deposits to and disbursements from the Fund account shall be subject to rulesestablished by the Board.

(d)        The Board shall adopt rules governing management of theFund, the presentation and processing of applications for reimbursement, andsubrogation or assignment of the rights of any reimbursed applicant.

(e)        The Board may expend monies in the Fund for the followingpurposes:

(1)        To make reimbursements on approved applications;

(2)        To purchase insurance to cover losses as deemed appropriateby the Board and not inconsistent with the purposes of the Fund;

(3)        To invest such portions of the Fund as are not currentlyneeded to reimburse losses and maintain adequate reserves, as are permitted tobe made by fiduciaries under State law; and

(4)        To pay the expenses of the Board for administering the Fund,including employment of legal counsel to prosecute subrogation claims.

(f)         Reimbursements from the Fund shall be made only to theextent to which such losses are not bonded or otherwise covered, protected orreimbursed and only after the applicant has complied with all applicable rulesof the Board.

(g)        The Board shall investigate all applications made and mayreject or allow such claims in whole or in part to the extent that monies areavailable in the Fund. The Board shall have complete discretion to determinethe order and manner of payment of approved applications. All payments shall bea matter of privilege and not of right, and no person shall have any right inthe Fund as a third‑party beneficiary or otherwise. No attorney may becompensated by the Board for prosecuting an application for reimbursement.

(h)        In the event reimbursement is made to an applicant underthis section, the Board shall be subrogated in the reimbursed amount and maybring any action it deems advisable against any person, including a preneedlicensee. The Board may enforce any claims it may have for restitution orotherwise and may employ and compensate consultants, agents, legal counsel,accountants and any other persons it deems appropriate.

(i)         The Fund shall apply to losses arising after July 9, 1992,regardless of the date of the underlying preneed funeral contract. (1991 (Reg. Sess., 1992), c. 901, s. 2; 1997‑399,s. 26.)