North Carolina Funeral Law Practice Exam

How are members of a burial association typically treated if they fail to pay an assessment?

1. They are removed

2. They are placed in good standing

3. They are flagged for assistance

4. They are considered in bad standing

The correct answer is: They are considered in bad standing

Members of a burial association who fail to pay an assessment are typically considered in bad standing. This classification signifies that the member is not currently fulfilling their financial obligations to the association, which can have various consequences. Being in bad standing may affect their eligibility for certain benefits or services provided by the association, including the burial benefits that correlate with their membership. In many burial associations, maintaining good standing is essential to ensure access to the agreed-upon services, and non-payment is a clear indicator that a member is not actively contributing to the pool of resources meant to provide those benefits. This helps the association manage its funds and resources appropriately while also encouraging members to remain current with their payments.