State Codes and Statutes

State Codes and Statutes

Statutes > North-carolina > Chapter_90 > GS_90-210_68

§ 90‑210.68.  Licensee'sbooks and records; notice of transfers, assignments and terminations.

(a)        Every preneedlicensee shall keep for examination by the Board accurate accounts, books, andrecords in this State of all preneed funeral contract and prearrangementinsurance policy transactions, copies of all agreements, insurance policies,instruments of assignment, the dates and amounts of payments made and acceptedthereon, the names and addresses of the contracting parties, the persons forwhose benefit funds are accepted, and the names of the financial institutionsholding preneed funeral trust funds and insurance companies issuingprearrangement insurance policies. The Board, its inspectors appointed pursuantto G.S. 90‑210.24 and its examiners, which the Board may appoint toassist in the enforcement of this Article, may during normal hours of operationand periods shortly before or after normal hours of operation, investigate thebooks, records, and accounts of any licensee under this Article with respect totrust funds, preneed funeral contracts, and prearrangement insurance policies.Any preneed licensee who, upon inspection, fails to meet the requirements ofthis subsection or who fails to keep an appointment for an inspection shall paya reinspection fee to the Board in an amount not to exceed one hundred dollars($100.00). The Board may require the attendance of and examine under oath allpersons whose testimony it may require. Every preneed licensee shall submit awritten report to the Board, at least annually, in a manner and with suchcontent as established by the Board, of its preneed funeral contract sales andperformance of such contracts. The Board may also require other reports.

(b)        A preneed licenseemay transfer preneed funds held by it as trustee from the financial institutionwhich is a party to a preneed funeral contract to a substitute financialinstitution that is not a party to the contract. Within 10 days after thetransfer, the preneed licensee shall notify the Board, in writing, of the nameand address of the transferee financial institution. Before the transfer may bemade, the transferee financial institution shall agree to make disclosuresrequired under the preneed funeral contract to the Board or its inspectors orexaminers. If the contract is revocable, the licensee shall notify thecontracting party of the intended transfer.

(c)        If any preneedlicensee transfers or assigns its assets or stock to a successor funeralestablishment or terminates its business as a funeral establishment, thepreneed licensee and assignee shall notify the Board at least 15 days prior tothe effective date of the transfer, assignment or termination: provided,however, the successor funeral establishment must be a preneed licensee orshall be required to apply for and be granted such license by the Board beforeaccepting any preneed funeral contracts, whether funded by trust deposits orpreneed insurance policies. Provided further, a successor funeral establishmentshall be liable to the preneed funeral contract purchasers for the amount ofcontract payments retained by the assigning or transferring funeral homepursuant to G.S. 90‑210.61(a)(2).

(d)        Financialinstitutions that accept preneed funeral trust funds and insurance companiesthat issue prearrangement insurance policies shall, upon request by the Boardor its inspectors or examiners, disclose any information regarding preneedfuneral trust accounts held or prearrangement insurance policies issued by itfor a preneed licensee.

Financial institutions thataccept preneed funeral trust funds and insurance companies that assign policyproceeds or designate a preneed funeral establishment as beneficiary shall alsoforward an account balance to the contracting preneed funeral establishment atthe end of each calendar year.

(d1)      When a preneedfuneral establishment license lapses or is terminated for any reason, thepreneed licensee shall immediately divest of all the unperformed preneedfuneral contracts and shall transfer them and any amounts retained under G.S.90‑210.61(a)(2) to another preneed funeral establishment licenseepursuant to the procedures of subsection (e) of this section.

(e)        In the event thatany preneed licensee is unable or unwilling or is for any reason relieved ofits responsibility to perform as trustee or to perform any preneed funeralcontract, the Board shall order the contract and any amounts retained pursuantto G.S. 90‑210.61(a)(2) to be assigned to a substitute preneed licenseeprovided that neither the substitute preneed licensee or preneed contractpurchaser, or after the death of the preneed contract purchaser, the preneedcontract beneficiary or his or her legal representative, shall be obligated toperform the agreement without executing a new preneed funeral contract. Any lapseor transfer of a preneed contract pursuant to this section shall not be groundsto revoke an irrevocable preneed funeral contract.

(f)         The substitutepreneed licensee under subsections (d1) and (e) of this section shall be liableto the preneed funeral contract purchasers for the amount of contract paymentsthat had been retained by, and that the substitute preneed licensee hasreceived from, the assigning preneed licensee. (1969, c. 187, s. 6; 1983, c. 657, ss. 4, 5; 1985, c.12, s. 1; 1991 (Reg. Sess., 1992), c. 901, s. 2; 1993, c. 164, s. 3; 1997‑399,s. 28; 2007‑531, ss. 13, 14.)