21 NCAC 34D .0202         PRENEED SALES LICENSE

(a)  Individuals who hold either an active funeral director's license or an active funeral service license issued by the Board and who have taken three or more hours of continuing education on preneed statutes and rules taught by Board staff within the preceding three calendar years are eligible for initial licensure as a preneed sales license upon application by a funeral establishment holding an active preneed establishment permit, as set forth in Paragraph (d) of this Rule.

(b)  Only individuals who hold an active preneed sales license issued by the Board or resident trainees in funeral service or funeral directing registered with the Board as allowed by 21 NCAC 34B .0103 are permitted to engage in the following preneed funeral planning activities:

(1)           discuss with consumers written materials, including price lists and photographs, descriptive of the funeral services, funeral merchandise, the preneed funeral plan, or funeral contract being offered;

(2)           explain the various types of funeral ceremonies and services and the qualities and characteristics of various kinds of funeral merchandise;

(3)           sell, on a preneed basis, funeral services and merchandise;

(4)           record, on any form or otherwise, specific items of funeral services and merchandise selected on a preneed basis;

(5)           make funeral arrangements on a preneed basis; and

(6)           sign preneed contracts; provided, however, that the resident trainee and his or her licensed supervisor comply with 21 NCAC 34B .0103(e) when doing so.

(c)  No preneed sales license is required for the sale of an insurance policy for which no funeral establishment or its representative is listed as the beneficiary or assignee of said policy. In connection with such a sale, the salesperson shall not be deemed to have engaged in preneed funeral planning if the salesperson shows only price lists of funeral services and merchandise to permit a prospective purchaser to make an informed decision as to the amount of insurance desired.

(d)  An applicant shall apply for, renew, or surrender a preneed sales license in accordance with the following provisions:

(1)           A funeral establishment holding an active preneed establishment permit shall apply for, or renew, a preneed sales license by submitting the following to the Board on behalf of the applicant for a preneed sales license:

(A)          the applicant's name, address, email address, and telephone number;

(B)          the applicant's funeral director's or funeral service license number;

(C)          the name, address, and preneed establishment permit number of the preneed funeral establishment licensee or licensees on whose behalf the applicant will sell preneed funeral contracts;

(D)          the applicant's employment or agency relationship with the preneed establishment licensee or licensees;

(E)           the initial or renewal application fee required by 21 NCAC 34A .0201(c) for each preneed sales licensee;

(F)           the date on which the applicant has taken the continuing education course required by Paragraph (a) of this Rule; and

(G)          the applicant's signature and attestation that he or she has read and will comply with the statutes and rules governing the practice of preneed funeral service.

(2)           Either the preneed sales licensee or the preneed funeral establishment on whose behalf the preneed sales licensee is engaged in preneed funeral planning activities may surrender a preneed sales license by submitting notification of such surrender in writing to the Board.

(e)  If a preneed sales licensee proposes to engage in preneed funeral planning activities on behalf of multiple preneed funeral establishment licensees that are not wholly owned by or affiliated with common ownership, the preneed sales licensee shall submit the following to the Board:

(1)           the date on which the preneed sales licensee will begin engaging in preneed funeral planning activities for multiple preneed funeral establishment licensees;

(2)           the date on which the preneed sales licensee will stop engaging in preneed funeral planning activities for multiple preneed funeral establishment licensees, if known;

(3)           the name, license number, and signature of the preneed sales licensee;

(4)           the name and signature of the licensed manager of each preneed funeral establishment licensee for whom the preneed sales licensee will engage in preneed funeral planning activities; and

(5)           an attestation from each of the individuals identified in Subparagraphs (3) and (4) of this Paragraph that:

(A)          he or she consents to the preneed sales licensee engaging in preneed funeral planning activities on behalf of the identified preneed funeral establishment licensees; and

(B)          the preneed sales licensee and the preneed funeral establishment licensee on whose behalf the preneed funeral planning activities are to be conducted shall comply with the statutes and rules governing preneed funeral planning activities.

(f)  The Board shall issue to each preneed sales licensee a pocket card as certification of the preneed sales license. The preneed sales licensee shall carry the card while engaging in preneed funeral planning.

(g)  The preneed sales licensee shall sign and affix his or her preneed sales license number to each preneed funeral contract, which he or she sells, in the presence of the purchaser of the contract at the time of sale.

History Note:        Authority G.S. 90-210.25(a)(4); 90-210.60(8); 90-210.67(a),(c); 90-210.69(a), (c);

Eff. July 1, 1993;

Amended Eff. January 1, 1996; June 1, 1994;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. August 19, 2017;

Amended Eff. January 1, 2023.