North Carolina Cemetery Company Performance Bond
Cemeteries and other companies in the business of selling preneed graves, markers, mausoleums and crypts can obtain a Cemetery Company Performance Bond in lieu of maintaining a trust fund for prepaid deposits per the State of North Carolina Cemetery Commission. This bond financially guarantees that cemetery establishments will perform their agreed upon contractual obligations with their prepaid customers to build proper structures and provide services upon the need.
PURCHASE CEMETERY COMPANY PERFORMANCE BOND
At Jet, we don’t believe in applications that take a lifetime to complete. Our online application process only takes a matter of minutes.
How Is The Bond Limit Determined?
The amount of the bond will be dependent upon the sum of all individual customer's contracts made. There are two different deposit trust funds the bond can replace: Personal Property or Services Trust and Preconstruction Trust.
The Personal Property or Services Trust fund shall be composed of a deposit equal to 60% of all proceeds received through customer contracts. This trust fund is to be used for the preparation and use of the cemetery when the time comes. The accounts or deposits shall be in the name of the cemetery company or other entity in a form that will permit withdrawals only with the participation and consent of the Commission.
General guidelines imposed by the State of North Carolina Cemetery Commission express that the cemetery company shall deposit 120% of funds received from a sale of a mausoleum or underground crypt into a preconstruction trust account. The funds are held to guarantee the construction of the paid for mausoleum or crypt. The trust account portion of each payment shall be computed by dividing the cost of the project in addition to 20% of the cost, as computed by a licensed contractor.
What Is The Cost of The Cemetery Company Performance Bond?
With Jet, the price to purchase a cemetery company performance bond can start at $100. Prices vary based on the bonding limit and personal credit of the cemetery establishment owner. The qualifying rates shown below display the available options of preferred tiers of pricing.
The bonding limit required by the State of North Carolina Cemetery Commission is an amount sufficient to cover all payments made directly or indirectly by the purchaser who have yet to receive purchased property and services.
Should there be any changes to your customer contracts, notify Jet immediately to adjust the rate on your bond. Our monthly payment option will provide you with some relief and save you a headache!
Jet also offers the option to purchase the bond on an annual basis.
Can Jet File the Cemetery Company Performance Bond For Me?
Yes, we can! Other carriers would send you a bond form to complete, requiring you to send it back to the North Carolina Cemetery Commission, all after having charged you an additional fee. With Jet, you receive a copy of the bond for your records and leave the bond filing to us.
The bond will be sent to the following address:
State of North Carolina Cemetery Commission
1001 Navaho Dr #207
Raleigh, NC, 27609
Can I Cancel My Cemetery Company Performance Bond? Will I Receive a Refund?
At Jet, you can! If you need to cancel your bond, simply notify Jet by email or mail so we can begin the cancellation process. Many other insurance brokers and agents would not provide a simple cancellation process and would withhold minimum earned premiums as well as commission fees.
If your bond was purchased on monthly terms, Jet will cancel the automatic payments. Any unearned prepaid amounts would be refunded back to you.
The cemetery company performance bond has a 30-day provisional period in which the bond will remain active after it has been cancelled. Jet will calculate the active time period when determining the return premium of a bond, including the coverage that is still offered during those 30 days.
How Does a Cemetery Establishment Avoid Bond Claims?
Cemetery establishments are required to uphold the rules and regulations assigned by the State of North Carolina Cemetery Commission stated on Chapter 65 - Article 9. The cemetery establishment should perform the terms and conditions outlined in each customer contract.
The state statute has determined a noncompliant activity based on the individual roles with the cemetery establishment. For individuals who have obtained a license in sales organization including the sale of preneed graves, management organizations, or brokerage:
- No legal entity shall conduct any operations relating to the cemetery industry without having obtained a license from the Commission beforehand.
To avoid a claim, cemetery establishments must ensure that proper procedures are followed. The following guidelines have been set in place in relation to the sale of property or services:
- When making a sale, the cemetery company shall deliver to the person to whom the sale is made, written confirmation which states the net income of the care and maintenance trust fund and how it will be reasonably used.
- As a receipt from sale of personal property or services, the cemetery company shall deposit 60% of all proceeds received by customer contracts into a trust account governed by a corporate trustee.
- In compliance to construction regulations of mausoleums and crypts, the cemetery is required to start the construction within 48 months of the sale date, establish a preconstruction trust account, and refund the personal representative of the purchaser in the event that they pass away before completion of construction. The refund shall include the complete amount paid by the purchaser including any income earned thereon.
Should the cemetery company that has entered into a customer contract not fulfill the terms and conditions, the purchaser is entitled to receive the entire amount paid on the contract and any income if any, earned thereon by the trust account.
Cemetery establishments that fail to abide by the rules and regulations outlined in Chapter 65 - Article 9 will be subject to varying levels of penalties. Conducting cemetery business operations without proper licensing will result in a Class I misdemeanor. Each occurrence of failing to deposit funds into trust funds will result in separate offenses and will be deemed guilty of a Class I felony.
Any purchaser who has not received the agreed upon property or services may file a claim against your bond. The Commission has the power to conduct investigations on any claim set against a cemetery establishment.
What Will Happen If I Get a Bond Claim?
Notify Jet immediately should there be a claim on your bond. Jet will provide a defense and investigate claims made against cemetery establishments to verify its validity.
If your claim is found to be valid, Jet will provide a payment up to the bond limit. The cemetery establishment will still be expected to repay Jet in the amount that was paid out to the damaged party.
Is The Cemetery Company Performance Bond Required?
The State of North Carolina Cemetery Commission exists to regulate all businesses within the cemetery industry and ensure they have proper licensing to operate. The cemetery company performance bond provides an additional security that cemetery establishments will fulfill their obligatory contract performances.
The bond is not required for cemetery establishments. Cemetery establishments are required to place funds into a trust fund account after any customer contract has been made. In lieu of the required deposits, cemetery establishments may post with the Commission a bond in an amount sufficient to cover any payments made by the purchaser for cemetery property or services. Meaning, the bond would replace the need for the strictness brought by the Personal Property or Services Trust and Preconstruction Trust.
The Personal Property or Services Trust and Preconstruction Trust can only be accessed for withdrawal or transfer of funds if the Commission has been notified and has provided written consent. The bond would negate this withdrawal process by making it easier for you to access those funds to be used appropriately within the scope of your cemetery establishment.
How Does the Application Process Work With Jet?
At Jet, our simplified application process makes it easier for you to get bonded and get back to your business operations. The online application process for this bond does not require a soft credit check.
Jet will work efficiently and take a deep review of your financials before you are approved. Jet will need personal or business financial statements and/or customer contracts to verify good financial standing.
Once you have entered your basic information, Jet will offer you an approved rate ready for purchase.
PURCHASE CEMETERY COMPANY PERFORMANCE BOND
How Do I Renew My Bond?
If you have purchased your bond on monthly payments then you do not need to worry about any renewal process. As long as the automatic payments continue your bond will remain current.
For bonds that have been purchased on annual terms, a renewal payment will need to be submitted to continue coverage. You do not need to worry about remembering any dates. Jet will notify you with plenty of time to make your payment before your coverage ends.
