NC H664

Funeral directors and funeral establishment employees may request life insurance information for deceased persons from insurers by providing a death notification, written authorization from the person directing disposition, and (for group life insurance) the deceased's affiliation with the group.

Insurers must inform requesters of policy existence, beneficiaries, outstanding liens or loans, benefit amounts, and whether the policy was reinstated within the last 24 months, and must provide a claim form.

Funeral directors must make reasonable efforts to locate beneficiaries within 100 hours of receiving insurance information and provide all documents obtained from the insurer to all beneficiaries.

Funeral directors must inform beneficiaries in writing in bold print that they have no legal duty to spend life insurance benefits on the deceased's funeral, debts, or obligations before discussing funeral financial arrangements.

False requests for information or failure to comply with notification requirements constitutes fraud or misrepresentation in funeral service practice, rendering the licensee unfit to practice.