North Carolina § 90-210 - 62. Types of preneed funeral contracts; forms.

§ 90-210. 62. Types of preneed funeral contracts; forms.

A preneed licensee may offer standard preneed funeral contracts and inflation-proof preneed funeral contracts. A standard preneed funeral contract applies the trust funds or insurance proceeds to the purchase price of funeral services and merchandise at the time of death of the contract beneficiary without protection against potential future price increases. An inflation-proof contract establishes an agreement between the preneed licensee and the purchaser for funeral services and merchandise without regard to potential future price increases. Upon written disclosure to the purchaser of a preneed funeral contract, inflation-proof contracts may permit the preneed licensee to retain all of the preneed funeral contract trust funds on deposit, and all insurance proceeds, even those in excess of the retail cost of goods and services provided, when the preneed licensee has fully performed the preneed funeral contract. Preneed funeral contracts may be revocable or irrevocable, at the option of the preneed funeral contract purchaser. The Board may prescribe forms for preneed funeral contracts consistent with this Article. All contracts must be in writing on forms prescribed by the Board. Any use or attempted use of any oral preneed funeral contract or any written contract in a form not prescribed by the Board shall be deemed a violation of this Article. History (1991 (Reg. Sess., 1992), c. 901, s. 2; 2007-531, s. 8.) Effect of Amendments. - Session Laws 2007-531, s. 8, effective August 31, 2007, in subsection (a), substituted "protection against potential future" for "a guarantee against" in the second sentence, substituted "an agreement between the preneed licensee and the purchaser" for "a fixed price" and inserted "potential future" in the third sentence; and rewrote subsection (b).