State Codes and Statutes

State Codes and Statutes

Statutes > North-carolina > Chapter_90 > GS_90-210_67

§ 90‑210.67. Application for license.

(a)        No person may offeror sell preneed funeral contracts or offer to make or make any funded funeralprearrangements without first securing a license from the Board.Notwithstanding any other provision of law, any person who offers to sell orsells a casket, to be furnished or delivered at a time determinable by thedeath of the person whose body is to be disposed of in the casket, shall firstcomply with the provisions of this Article. There shall be two types of licenses:a preneed funeral establishment license and a preneed sales license. Onlyfuneral establishments holding a valid establishment permit pursuant to G.S. 90‑210.25(d)shall be eligible for a preneed funeral establishment license. Employees andagents of such entities, upon meeting the qualifications to engage in preneedfuneral planning as established by the Board, shall be eligible for a preneedsales license. The Board shall establish the preneed funeral planningactivities that are permitted under a preneed sales license. The Board shalladopt rules establishing such qualifications and activities no later than 12months following the ratification of this act [Session Laws 1991 (Reg. Sess.,1992), c. 901, s. 2]. Preneed sales licensees may sell preneed funeralcontracts, prearrangement insurance policies, and make funded funeralprearrangements only on behalf of one preneed funeral establishment licensee;provided, however, they may sell preneed funeral contracts, prearrangementinsurance policies, and make funeral prearrangements for any number of licensedpreneed funeral establishments that are wholly owned by or affiliated with,through common ownership or contract, the same entity; provided further, in theevent they engage in selling prearrangement insurance policies, they shall meetthe licensing requirements of the Commissioner of Insurance. Every preneedfuneral contract shall be signed by a person licensed as a funeral director orfuneral service licensee pursuant to Article 13A of Chapter 90 of the GeneralStatutes.

Application for a licenseshall be in writing, signed by the applicant and duly verified on formsfurnished by the Board. Each application shall contain at least the following:the full names and addresses (both residence and place of business) of theapplicant, and every partner, member, officer and director thereof if theapplicant is a partnership, limited liability company, association, orcorporation and any other information as the Board shall deem necessary. Apreneed funeral establishment license shall be valid only at the address statedin the application or at a new address approved by the Board.

(b)        An application fora preneed funeral establishment license shall be accompanied by a nonrefundableapplication fee of not more than four hundred dollars ($400.00). The Boardshall set the amounts of the application fees and renewal fees, by rule. Afuneral establishment receiving a new preneed establishment license afterJanuary 1, 2008, or whose preneed establishment license has lapsed or wasterminated for any reason after January 1, 2008, shall obtain a surety bond inan amount not less than fifty thousand dollars ($50,000) for five years, orupon demonstrating that it is solvent, no less than one year from the date theoriginal license is issued. The Board may extend the bonding requirement in theevent there is a claim paid from the bond.

If the license is granted, theapplication fee shall be applied to the annual license fee for the first yearor part thereof. Upon receipt of the application and payment of the applicationfee, the Board shall issue a renewable preneed funeral establishment licenseunless it determines that the applicant has violated any provision of G.S. 90‑210.69(c)or has made false statements or representations in the application, or isinsolvent, or has conducted or is about to conduct, its business in afraudulent manner, or is not duly authorized to transact business in thisState. The license shall expire on December 31 and each preneed funeralestablishment licensee shall pay annually to the Board on or before that date alicense renewal fee of not more than two hundred fifty dollars ($250.00). On orbefore the first day of February immediately following expiration, a licensemay be renewed without paying a late fee. After that date, a license may berenewed by paying a late fee of not more than one hundred dollars ($100.00) inaddition to the annual renewal fee.

(c)        An application fora preneed sales license shall be accompanied by a nonrefundable application feeof not more than fifty dollars ($50.00). The Board shall set the amounts of theapplication fees and renewal fees by rule, but the fees shall not exceed fiftydollars ($50.00). If the license is granted, the application fee shall beapplied to the annual license fee for the first year or part thereof. Uponreceipt of the application and payment of the application fee, the Board shallissue a renewable preneed sales license provided the applicant has met thequalifications to engage in preneed funeral planning as established by theBoard unless it determines that the applicant has violated any provision ofG.S. 90‑210.69(c). The license shall expire on December 31 and eachpreneed sales licensee shall pay annually to the Board on or before that date alicense renewal fee of not more than fifty dollars ($50.00). On or before thefirst day of February, a license may be renewed without paying a late fee.After that date, a license may be renewed by paying a late fee of not more thantwenty‑five dollars ($25.00) in addition to the annual renewal fee.

(d)        Any person sellinga preneed funeral contract, whether funded by a trust deposit or aprearrangement insurance policy, shall remit to the Board, within 10 days ofthe sale, a fee not to exceed twenty dollars ($20.00) for each sale and a copyof each contract. The person shall pay a late fee of not more than twenty‑fivedollars ($25.00) for each late filing and payment. The fees shall not beremitted in cash.

(d1)      The Board may alsoset and collect a fee of not more than twenty‑five dollars ($25.00) forthe late filing of a certificate of performance and a fee of not more than onehundred and fifty dollars ($150.00) for the late filing of an annual report.

(e),       (f). Repealed bySession Laws 2003‑420, s. 14, effective October 1, 2003. (1969, c. 187, s. 5; 1981, c.671, ss. 16, 17; 1983, c. 657, s. 4; 1985, c. 12, ss. 1, 2; 1991 (Reg. Sess.,1992), c. 901, s. 2; 1995 (Reg. Sess., 1996), c. 665, s. 1; 1997‑399, s.27; 2001‑294, s. 10; 2003‑420, s. 14; 2007‑531, s. 12.)