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How much does a preneed funeral services bond cost in North Carolina?
The North Carolina Board of Funeral Service (NCBFS) requires those wishing to provide preneed funeral services to post a $50,000 surety bond.
The premium an applicant could pay depends on a review of their credit report. An applicant with great credit could pay as low as 1% of the total bond amount. We recommend contacting our team of surety bond experts who can set you up with your free bond quote quickly and easily!
Call 1 (800) 308-4358 or submit an online bond request to connect with our team of surety bond experts now!
Why do I need this bond?
Preneed funeral service bonds ensure that all principals (preneed funeral service providers) adhere to the rules and regulations in the Statutes Governing Funeral Service under Chapter 90, Article 13D. Prohibited business practices under this act include:
- Engaging in preneed services without a proper license
- A crime involving fraud or misrepresentation of a licensed preneed funeral services provider
- False or misleading advertising
Preneed funeral service bonds protect the businesses clients and the public against wrongful doing. If damages occur, the surety will pay the claim up to the full bond amount. However, the principal must reimburse the surety for any money paid out in a claim.
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What’s the fine print?
Performance bonds of preneed funeral contracts in North Carolina remain in effect for one year unless claimed against or cancelled. The bond can be cancelled by the surety by giving written notice at least 30-days prior to the effective cancellation date.
How to become a preneed funeral service provider in North Carolina
The North Carolina Board of Funeral Service requires that a funeral home service provider be licensed to sell preneed funeral contracts. To obtain a license, an applicant must submit the following:
- All proper contracts
- Initial $150 application fee
- Any additional fee for contracts
- $50,000 surety bond
All contracts and information can be found on the NCBFS website or at the Additional Resources section below.