North Carolina Funeral Law EXAM STUDY
GUIDE 2026/2027 ACCURATE QUESTIONS
WITH CORRECT DETAILED SOLUTIONS ||
100% GUARANTEED PASS
<NEWEST VERSION>
1. North Carolina Board of Funeral Service (NCBFS) - ANSWER ✔
Regulates funeral service and protects public health, safety, and welfare.
2. NCBFS Board Composition - ANSWER ✔ 9 members — 7 licensed
funeral service professionals and 2 public members.
3. NCBFS Board Terms - ANSWER ✔ Staggered 3-year terms. The Board
must meet at least 4 times annually.
4. NCBFS Inspectors - ANSWER ✔ Help ensure funeral establishments
comply with regulations and must be licensed funeral directors or
embalmers.
5. Key Statutes - ANSWER ✔ Article 13A = Practice of Funeral Service;
Article 13D = Preneed Funeral Funds; Article 13E = Mutual Burial
Associations; Article 13F = Cremations.
6. Funeral Director - ANSWER ✔ A person engaged in funeral directing.
7. Embalmer - ANSWER ✔ A person engaged in embalming.
8. Funeral Establishment - ANSWER ✔ A place devoted to care,
arrangement, preparation, and final disposition of dead human bodies and/or
the practice of funeral service.
,9. Chapel - ANSWER ✔ Separate facility primarily used for reposing,
visitation, funeral ceremonies, or memorial services; it is not a full funeral
establishment.
10.Embalming Facility - ANSWER ✔ Separate facility where embalming
occurs and that does not engage in funeral directing or display funeral
merchandise.
11.Funeral Establishment Permit - ANSWER ✔ A funeral establishment must
have a Board-issued permit, conspicuously displayed.
12.Licensed Manager Requirement - ANSWER ✔ Every establishment must
have a licensed manager. One manager may manage multiple establishments
within a 50-mile radius.
13.Establishment Permit Transferability - ANSWER ✔ Establishment permits
are not transferable.
14.Sole Proprietorship Licensing - ANSWER ✔ Owner must meet applicable
licensing requirements.
15.Standard preneed - ANSWER ✔ Trust funds or insurance proceeds are
applied to the price of funeral services and merchandise at death. Not
guaranteed.
16.Inflation-proof preneed - ANSWER ✔ Funeral services and merchandise
are guaranteed regardless of future price increases. After performance, the
licensee may keep all trust funds and insurance proceeds, even if they
exceed retail cost.
17.Trust-funded preneed - ANSWER ✔ Deposit funds into an insured trust
account in the preneed licensee's name as trustee within 5 business days.
18.Retention from trust payments - ANSWER ✔ The preneed licensee may
keep up to 10% of payments if disclosed in writing.
19.Insurance-funded preneed - ANSWER ✔ Apply the funds to the purchase
within 5 business days.
,20.Clearing account - ANSWER ✔ The only other account a licensee may
hold for preneed funds before disbursement.
21.Trust to insurance transfer - ANSWER ✔ With written permission, trust
funds under a revocable or irrevocable contract may be withdrawn to buy a
prearrangement insurance policy.
22.After death - ANSWER ✔ File a certificate of performance with the Board
within 10 days after receiving payment from the insurance company or
financial institution.
23.Refunds - ANSWER ✔ Refunds of $1,000 or less may be paid to the estate
beneficiary. Amounts over $1,000, or amounts not payable to the estate, go
to the clerk of superior court for probate.
24.Within 30 days after completing a trust-funded account - ANSWER ✔
Submit a certificate of performance to the financial institution and close the
preneed account.
25.Who can sell - ANSWER ✔ A preneed sales licensee may sell preneed
contracts, prearrangement insurance, and funded funeral prearrangements for
only one preneed funeral establishment, unless the establishments share
common ownership or are contractually affiliated.
26.Insurance sales - ANSWER ✔ If selling prearrangement insurance, the
licensee must also meet the Commissioner of Insurance licensing
requirements.
27.Revocable contracts - ANSWER ✔ The beneficiary may cancel in writing.
The financial institution must issue the refund within 30 days.
28.Handling of funds after beneficiary's death - ANSWER ✔ The funeral
home must complete a certificate of performance and send it to the financial
institution or insurance company.
29.Refund rules for unpaid contracts - ANSWER ✔ The funeral home does
not have to provide goods or services that were not fully paid for.
, 30.Payment distribution after contracted services - ANSWER ✔ Any leftover
balance after all contracted services are paid for must go to the estate or the
insurance beneficiary.
31.Payment to performing funeral home - ANSWER ✔ The bank still pays the
trust funds to the performing funeral home regardless of the original
contracting funeral home.
32.Small balances (≤ $1,000) - ANSWER ✔ If the remaining trust balance is
$1,000 or less, payable to the estate, and no estate representative has been
appointed, the funds may be paid directly to the heirs.
33.Funds over $1,000 - ANSWER ✔ If the balance is over $1,000 or not
payable to the estate, the funds must be paid to the clerk of superior court in
the county where probate could be filed.
34.Requirements for trust-funded contracts - ANSWER ✔ For trust-funded
preneed contracts, within 30 days of fulfilling the contract, the funeral home
must submit a certificate of performance to the bank and close the trust
account.
35.Distribution of trust funds - ANSWER ✔ The trust funds must be
distributed according to the contract.
36.Certificate of performance filing - ANSWER ✔ A completed copy of the
certificate showing final disposition of funds must be filed with the Board.
37.Refunds for revocable preneed funeral contracts - ANSWER ✔ If the
contract is revocable, the purchaser has the right to get their money back.
38.Trust-funded contracts refund process - ANSWER ✔ When the purchaser
sends a written request, the financial institution must refund all trust funds
within 30 days.
39.Insurance-funded contracts refund process - ANSWER ✔ When the
purchaser sends a written cancellation notice, the insurance company must
refund money according to the policy terms within 30 days.
GUIDE 2026/2027 ACCURATE QUESTIONS
WITH CORRECT DETAILED SOLUTIONS ||
100% GUARANTEED PASS
<NEWEST VERSION>
1. North Carolina Board of Funeral Service (NCBFS) - ANSWER ✔
Regulates funeral service and protects public health, safety, and welfare.
2. NCBFS Board Composition - ANSWER ✔ 9 members — 7 licensed
funeral service professionals and 2 public members.
3. NCBFS Board Terms - ANSWER ✔ Staggered 3-year terms. The Board
must meet at least 4 times annually.
4. NCBFS Inspectors - ANSWER ✔ Help ensure funeral establishments
comply with regulations and must be licensed funeral directors or
embalmers.
5. Key Statutes - ANSWER ✔ Article 13A = Practice of Funeral Service;
Article 13D = Preneed Funeral Funds; Article 13E = Mutual Burial
Associations; Article 13F = Cremations.
6. Funeral Director - ANSWER ✔ A person engaged in funeral directing.
7. Embalmer - ANSWER ✔ A person engaged in embalming.
8. Funeral Establishment - ANSWER ✔ A place devoted to care,
arrangement, preparation, and final disposition of dead human bodies and/or
the practice of funeral service.
,9. Chapel - ANSWER ✔ Separate facility primarily used for reposing,
visitation, funeral ceremonies, or memorial services; it is not a full funeral
establishment.
10.Embalming Facility - ANSWER ✔ Separate facility where embalming
occurs and that does not engage in funeral directing or display funeral
merchandise.
11.Funeral Establishment Permit - ANSWER ✔ A funeral establishment must
have a Board-issued permit, conspicuously displayed.
12.Licensed Manager Requirement - ANSWER ✔ Every establishment must
have a licensed manager. One manager may manage multiple establishments
within a 50-mile radius.
13.Establishment Permit Transferability - ANSWER ✔ Establishment permits
are not transferable.
14.Sole Proprietorship Licensing - ANSWER ✔ Owner must meet applicable
licensing requirements.
15.Standard preneed - ANSWER ✔ Trust funds or insurance proceeds are
applied to the price of funeral services and merchandise at death. Not
guaranteed.
16.Inflation-proof preneed - ANSWER ✔ Funeral services and merchandise
are guaranteed regardless of future price increases. After performance, the
licensee may keep all trust funds and insurance proceeds, even if they
exceed retail cost.
17.Trust-funded preneed - ANSWER ✔ Deposit funds into an insured trust
account in the preneed licensee's name as trustee within 5 business days.
18.Retention from trust payments - ANSWER ✔ The preneed licensee may
keep up to 10% of payments if disclosed in writing.
19.Insurance-funded preneed - ANSWER ✔ Apply the funds to the purchase
within 5 business days.
,20.Clearing account - ANSWER ✔ The only other account a licensee may
hold for preneed funds before disbursement.
21.Trust to insurance transfer - ANSWER ✔ With written permission, trust
funds under a revocable or irrevocable contract may be withdrawn to buy a
prearrangement insurance policy.
22.After death - ANSWER ✔ File a certificate of performance with the Board
within 10 days after receiving payment from the insurance company or
financial institution.
23.Refunds - ANSWER ✔ Refunds of $1,000 or less may be paid to the estate
beneficiary. Amounts over $1,000, or amounts not payable to the estate, go
to the clerk of superior court for probate.
24.Within 30 days after completing a trust-funded account - ANSWER ✔
Submit a certificate of performance to the financial institution and close the
preneed account.
25.Who can sell - ANSWER ✔ A preneed sales licensee may sell preneed
contracts, prearrangement insurance, and funded funeral prearrangements for
only one preneed funeral establishment, unless the establishments share
common ownership or are contractually affiliated.
26.Insurance sales - ANSWER ✔ If selling prearrangement insurance, the
licensee must also meet the Commissioner of Insurance licensing
requirements.
27.Revocable contracts - ANSWER ✔ The beneficiary may cancel in writing.
The financial institution must issue the refund within 30 days.
28.Handling of funds after beneficiary's death - ANSWER ✔ The funeral
home must complete a certificate of performance and send it to the financial
institution or insurance company.
29.Refund rules for unpaid contracts - ANSWER ✔ The funeral home does
not have to provide goods or services that were not fully paid for.
, 30.Payment distribution after contracted services - ANSWER ✔ Any leftover
balance after all contracted services are paid for must go to the estate or the
insurance beneficiary.
31.Payment to performing funeral home - ANSWER ✔ The bank still pays the
trust funds to the performing funeral home regardless of the original
contracting funeral home.
32.Small balances (≤ $1,000) - ANSWER ✔ If the remaining trust balance is
$1,000 or less, payable to the estate, and no estate representative has been
appointed, the funds may be paid directly to the heirs.
33.Funds over $1,000 - ANSWER ✔ If the balance is over $1,000 or not
payable to the estate, the funds must be paid to the clerk of superior court in
the county where probate could be filed.
34.Requirements for trust-funded contracts - ANSWER ✔ For trust-funded
preneed contracts, within 30 days of fulfilling the contract, the funeral home
must submit a certificate of performance to the bank and close the trust
account.
35.Distribution of trust funds - ANSWER ✔ The trust funds must be
distributed according to the contract.
36.Certificate of performance filing - ANSWER ✔ A completed copy of the
certificate showing final disposition of funds must be filed with the Board.
37.Refunds for revocable preneed funeral contracts - ANSWER ✔ If the
contract is revocable, the purchaser has the right to get their money back.
38.Trust-funded contracts refund process - ANSWER ✔ When the purchaser
sends a written request, the financial institution must refund all trust funds
within 30 days.
39.Insurance-funded contracts refund process - ANSWER ✔ When the
purchaser sends a written cancellation notice, the insurance company must
refund money according to the policy terms within 30 days.
