North Carolina Funeral Law Practice Exam 2026 – The All-in-One Study Guide for Exam Success!

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What percentage of investment income must burial associations also add to their reserve account?

2%

5%

Burial associations in North Carolina are required to manage their finances responsibly to ensure they can meet their obligations to their members. One requirement is that a burial association must add a specified percentage of its investment income to its reserve account. The correct percentage is 5%. This stipulation is designed to enhance the financial stability of the association by ensuring that a portion of the income generated from investments is reinvested into the reserve account, which is crucial for covering future claims or benefits to members.

Maintaining an adequate reserve is essential for the long-term viability of burial associations, and by allocating a portion of investment income, they can ensure that they remain solvent and can fulfill their commitments to members' families.

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6%

7%

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