North Carolina Funeral Law Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

Prepare for the North Carolina Funeral Law Exam. Study with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your exam!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

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

The correct answer is: 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.