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For Review

PROPOSED PRENEED CONTRACTS

February 21, 2019


Announcement & Invitation for Feedback: Preneed Contracts


Dear Preneed Licensee and Stakeholder:

At its February 2019 meeting, the NC Board of Funeral Service considered a proposal to consolidate existing preneed contracts which would result in only two contract instruments: Standard or Inflation-Proof. Either contract could be funded through the traditional means using an insurance policy or a trust-funded account. There would no longer be separate contracts for Insurance-funded Standard, and Insurance-funded Inflation-proof, Trust-funded Standard and Trust-funded Inflationproof.

The intent of the proposal is to streamline the contact process and to assure as much clarity as possible for the benefit of both licensees and consumers. To achieve this objective, it is necessary to include sufficient information on the proposed forms which formerly was contained in four separate documents. As a result, each of the two proposed contract instruments are lengthy by comparison; however, licensees and consumers will be able to focus on the type and substance of a contract whether Standard or Inflation-Proof regardless of the funding source.

The Board would appreciate your review and input in further consideration of this proposal. We are therefore inviting your comments, suggestions, and general feedback regarding the proposal to consolidate the existing four preneed contracts into two preneed contracts as noted above. We also encourage you to share this communication with insurance company and/or banking representatives with whom you work in the execution of preneed contracts. The Board has authorized a 90-day period for receiving stakeholder comment.

The proposed contracts may be found on the Board website at https://ncbfs.org/. From the homepage, click the Proposed Preneed Contracts button for access. After reviewing, we would welcome your comments and suggestions. Please send them to the Board by email at prichardson@ncbfs.org, by FAX at 919 733-8271, or by US Postal Service at the NCBFS address shown below by May 30, 2019.