North Carolina Funeral Law Practice Exam

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How much of the assessments collected does a burial association reserve per member?

10%
$15.00
$21.00
5%

The correct answer is: $21.00

In North Carolina, burial associations are organizations that provide funeral benefits to their members upon their death. According to the regulations governing these associations, specifically relating to the financial management of the assessments collected from members, they are required to reserve a portion of these assessments to maintain their operations and fulfill future obligations. The correct amount that a burial association must reserve per member is $21.00. This reserve is crucial for ensuring that the association can meet its contractual obligations to provide benefits to members' designated beneficiaries upon the member's death. By reserving this specified amount, the association can maintain financial stability and ensure that adequate funds are available when claims arise. The other figures mentioned in the options do not align with the regulatory requirements for burial associations concerning the amount they must reserve per member. The focus on the $21.00 reserve reflects a practical approach to financial planning within these organizations, ensuring that they can sustainably support their members in a time of need.