North Carolina Funeral Law Practice Exam

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Is a new preneed funeral contract needed when substituting a preneed licensee?

No, it's unnecessary
Yes, a new contract is required
Only in special cases
Only if requested

The correct answer is: Yes, a new contract is required

In the context of the North Carolina Funeral Law, when substituting a preneed licensee, a new preneed funeral contract is required. This requirement ensures that the new licensee is officially acknowledged and that the terms of the contract are clear and binding under the new licensee's stewardship. This process maintains legal clarity and safeguards the rights of the consumer, ensuring that they are fully aware of who is responsible for fulfilling the terms of their preneed arrangements. It also helps prevent any potential disputes regarding service delivery, as all parties are aligned with the same document and terms. In scenarios involving multiple preneed licensees, having a new contract re-establishes mutual obligations and rights under the state’s laws. Thus, the formation of a new contract with the new licensee is essential to uphold these legal and ethical standards.