SUBCHAPTER 34D - PRENEED FUNERAL CONTRACTS
SECTION .0100 - GENERAL PROVISIONS
21 NCAC 34D .0101 APPROVAL OF CONTRACT FORMS
All preneed funeral contracts shall be transacted on forms prescribed by the Board. The Board may prescribe different forms for standard or inflation-proof contracts or for trust or insurance contracts. Each preneed funeral contract form shall contain the following information:
(1) Is written in clear, understandable language and is printed in easy-to-read type, size and style on paper not larger than 8 1/2 by 14 inches, with printing on both sides permitted.
(2) States or provides space for inserting the name, address and preneed funeral establishment license number of the contracting funeral establishment.
(3) Provides space for inserting the names, addresses and Social Security numbers of the purchaser and contract beneficiary.
(4) States that a description of the merchandise and services purchased is attached to the seller's and purchaser's copies of the contract and is a part of the agreement. The attachment shall be a form provided by the Board satisfying the requirements of a "statement of goods and services selected" as described in Funeral Industry Practices, 16 C.F.R. 453 (1984), as amended from time to time.
(5) Discloses any penalties or restrictions, including geographical restrictions, on the delivery of merchandise and services.
(6) States whether it is a standard or inflation-proof contract and summarizes, consistent with North Carolina law, the incidents of such type of contract.
(7) Provides space for inserting the financial transaction.
(8) Provides space for the purchaser to indicate, by the purchaser's signature or initials, the following:
(a) The purchaser's choice of trust-funded or insurance-funded contract.
(b) That the purchaser acknowledges that the funeral establishment will retain, and not deposit in trust, a stated percentage (not more than 10%) of the purchaser's payments.
(c) The purchaser's choice of revocable or irrevocable contract.
(d) That the purchaser acknowledges that the sale was made at the funeral establishment's place of business, so as to negate the cancellation rights connected with an off-premises sale.
(9) Contains notice, in bold type, of the purchaser's right to cancel an off-premises sale.
(10) Contains notice, in bold type, that if the purchaser does not receive notification from the Board, within 30 days, that it has received a copy of the contract, the purchaser should notify the Board at its current, stated address and telephone number.
(11) Explains the parties' rights and obligations, consistent with North Carolina law, with respect to contract revocation, default, the funeral establishment's retention of a portion of the purchase price free of the trust, and the substitution of funeral homes to perform the contract.
(12) Contains a notice of the existence of the Board's preneed recovery fund.
(13) Contains, or refers to an attachment containing, all funeral sales disclosures to consumers as required by federal and North Carolina law.
(14) Provides spaces for the signatures of the parties to the contract, including the signature and preneed sales license number of the preneed sales licensee who sold the contract. The following shall appear, in bold type, beneath the signature of the preneed sales licensee: "Signed and preneed sales license number affixed in presence of Purchaser at time of sale."
(15) Any other information the Board deems necessary and is required by law.
History Note: Authority G.S. 90-210.62(b); 90-210.69(a),(c)(6);
Eff. July 1, 1993;
Amended Eff. January 1, 2009; August 1, 1998.