Preneed funeral services bond cost
The North Carolina Board of Funeral Service (NCBFS) requires those wishing to provide preneed funeral services to post a $50,000 surety bond.
Why 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.
Preneed funeral services bond details
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.
Become a preneed funeral service provider
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 information section below.
Apply for your surety bond
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