North Carolina SB 256: Funeral Board Transportation Agreements/Ins.

Bill Text

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S 1
SENATE BILL 256

Short Title: Funeral Board Transportation Agreements/Ins. (Public)
Sponsors: Senator Johnson (Primary Sponsor).
Referred to: Rules and Operations of the Senate
March 11, 2025
*S256-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO MODIFY THE REQUIREMENTS OF TRANSPORTATION PROTECTION 2
AGREEMENTS PROVIDED BY CERTAIN FUNERAL SERVICE PROVIDERS. 3
The General Assembly of North Carolina enacts: 4
SECTION 1.(a) G.S. 90-210.60 reads as rewritten: 5
"§ 90-210.60. Definitions. 6
As used in this Article, unless the context requires otherwise: 7
... 8
(5) "Preneed funeral contract" means any contract, agreement, or mutual 9
understanding, or any series or combination of contracts, agreements, or 10
mutual understandings, whether funded by trust deposits or prearrangement 11
insurance policies, or any combination thereof, which has for a purpose the 12
furnishing or performance of funeral services, or the furnishing or delivery of 13
personal property, merchandise, or services of any nature in connection with 14
the final disposition of a dead human body, to be furnished or delivered at a 15
time determinable by the death of the person whose body is to be disposed of, 16
but does not mean the furnishing of a cemetery lot, crypt, niche, or 17
mausoleum;mausoleum. This term does not include a transportation 18
protection agreement. 19
... 20
(10) "Transportation protection agreement" means an agreement that primarily 21
provides for the coordination and arranging of all professional services related 22
to the preparation of human remains or cremated remains for the purpose of 23
initial and subsequent transportation of those remains." 24
SECTION 1.(b) G.S. 90-210.72 reads as rewritten: 25
"§ 90-210.72. Nonapplication to certain funeral contracts. 26
This Article does not apply to contracts any of the following: 27
(1) Contracts for funeral services or merchandise sold as preneed burial insurance 28
policies pursuant to Part 13 of Article 10 of Chapter 143B of the North 29
Carolina General Statutes or to replacements policies pursuant to Article 13E 30
of this Chapter. 31
(2) Replacements or conversions of such policies pursuant to G.S. 32
143B-472.28.G.S. 90-210.106. 33
(3) A transportation protection agreement as defined in this Article." 34
SECTION 1.(c) The North Carolina Board of Funeral Service may adopt rules to 35
implement the provisions of this section. 36

General Assembly Of North Carolina Session 2025
Page 2 Senate Bill 256-First Edition
SECTION 2.(a) G.S. 58-7-15 reads as rewritten: 1
"§ 58-7-15. Kinds of insurance authorized. 2
The kinds of insurance that may be authorized in this State, subject to the other provisions of 3
Articles 1 through 64 of this Chapter, are set forth in this section. Except to the extent an insurer 4
participates in a risk sharing plan under Article 42 of this Chapter, nothing in this section requires 5
any insurer to insure every kind of risk that it is authorized to insure. Except to the extent an 6
insurer participates in a risk sharing plan under Article 42 of this Chapter, no insurer may transact 7
any other business than that specified in its charter and articles of association or incorporation. 8
The power to do any kind of insurance against loss of or damage to property includes the power 9
to insure all lawful interests in the property and to insure against loss of use and occupancy and 10
rents and profits resulting therefrom; but no kind of insurance includes life insurance or insurance 11
against legal liability for personal injury or death unless specified in this section. In addition to 12
any power to engage in any other kind of business than an insurance business that is specifically 13
conferred by the provisions of Articles 1 through 64 of this Chapter, any insurer authorized to do 14
business in this State may engage in such other kinds of business to the extent necessarily or 15
properly incidental to the kinds of insurance business that it is authorized to do in this State. Each 16
of the following indicates the scope of the kind of insurance business specified: 17
(1) "Life insurance", meaning every insurance upon the lives of human beings 18
and every insurance appertaining thereto. The business of life insurance 19
includes the granting of endowment benefits; additional benefits in the event 20
of death by accident or accidental means; additional benefits operating to 21
safeguard the contract from lapse, or to provide a special surrender value, in 22
the event of total and permanent disability of the insured, including industrial 23
sick benefit; and optional modes of settlement of proceeds. The business of 24
life insurance does not include the provision of transportation protection 25
agreements, as defined under G.S. 90-210.60. 26
...." 27
SECTION 2.(b) G.S. 58-58-1 reads as rewritten: 28
"§ 58-58-1. Definitions; requisites of contract. 29
(a) All corporations or associations doing business in thi