2005 North Carolina Code - General Statutes § 90-210.62. Types of preneed funeral contracts; forms.

§ 90‑210.62.  Types of preneed funeral contracts; forms.

(a)       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 a guarantee against price increases. An inflation‑proof contract establishes a fixed price for funeral services and merchandise without regard to 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.

(b)       The Board shall approve all forms for preneed funeral contracts. All contracts must be in writing, and no form shall be used without prior approval of the Board. Any use or attempted use of any oral preneed funeral contract or any written contract in a form not approved by the Board shall be deemed a violation of this Article. (1991 (Reg. Sess., 1992), c. 901, s. 2.)