21 NCAC 34D .0305         TRANSFER OF TRUST FUNDS to insurance funded product

(a)  When, pursuant to G.S. 90-210.61(d), a preneed licensee withdraws preneed funeral funds from an irrevocable preneed funeral trust to purchase an insurance funded product that is irrevocably assigned to the contracting preneed funeral establishment, the preneed licensee shall direct the financial institution that is a party to the preneed funeral contract to make the transfer directly and solely to the substitute insurance company and not to the preneed licensee. The preneed licensee shall obtain the preneed contract purchaser's consent for the conversion on a form prescribed by the Board, which shall contain the following information:

(1)           The name, address, and license number of the preneed establishment serving as trustee for the preneed contract, along with the preneed contract identification number prescribed by the Board;

(2)           The name and address of the financial institution, along with the account number in which the preneed funds are held;

(3)           The name and address of the successor insurance company, to which the preneed funds will be transferred for the purchase of an irrevocably assigned insurance product;

(4)           The name of the preneed contract beneficiary and preneed contract purchaser;

(5)           The dated signature of the preneed contract purchaser or, if the purchaser, is deceased, the preneed contract beneficiary's legal representative, attesting to their consent for the conversion of the irrevocable preneed trust to an irrevocably assigned insurance product; and

(6)           The dated signature of the representative of the financial institution attesting to its payment of the preneed funds to the successor insurance company and the amount of preneed funds so transferred.

(b)  The preneed licensee shall file said form with the Board within 10 days following withdrawal of the preneed funeral funds from trust.

History Note:        Authority G.S. 90-210.69(a); 90-210.68(b);

Temporary Adoption Eff. November 7, 2025.