North Carolina Funeral Law Practice Exam

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Up to what amount must the reserve account equal per member in a burial association?

$15.00
$21.00
$25.00
$30.00

The correct answer is: $21.00

In North Carolina, burial associations are required to maintain reserve accounts to ensure the financial stability of the association and to provide the necessary funds for funeral and burial expenses for members. The law stipulates that the reserve account must equal a certain amount per member, and this amount is set to ensure that the association can adequately cover the costs associated with burial services. The correct amount that the reserve account must equal per member is $21.00. This figure is established to provide a guideline for associations to follow, ensuring that funds are available and allocated appropriately for future claims. Maintaining this reserve helps protect both the members and the association from financial shortfalls, thereby fulfilling the purpose of the burial association and ensuring that member benefits can be honored at the time of need. Other amounts listed do not reflect the legal requirement set for the reserve account per member, which reinforces why $21.00 is the appropriate amount as per the regulations governing burial associations in North Carolina.