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NC Register Volume 24 Issue 19 - Office of Administrative Hearings

NC Register Volume 24 Issue 19 - Office of Administrative Hearings

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PROPOSED RULES<br />

The Burial Association Commission, in its discretion will, upon<br />

application, permit one or more burial associations operating in<br />

North Carolina to merge with another burial association<br />

operating in North Carolina, and will, in its discretion, upon<br />

application, permit two or more burial associations operating in<br />

North Carolina to consolidate into a new burial association. The<br />

commission, in determining whether to permit or deny such<br />

application, will determine whether such consolidation or<br />

merger would be in the best interest <strong>of</strong> the members <strong>of</strong> the<br />

associations involved in any proposed plan <strong>of</strong> merger or<br />

consolidation.<br />

Authority G.S. 90-210.80.<br />

04 <strong>NC</strong>AC 04 .0304 SURPLUS OR RESERVE<br />

ACCOUNT<br />

All sums <strong>of</strong> money required by G.S. 58-<strong>24</strong>1.9, Article 13(b) to<br />

be paid into a surplus account or a reserve account, shall be held<br />

in said account by the burial association as required by law.<br />

Authority G.S. 90-210.80.<br />

04 <strong>NC</strong>AC 04 .0305 BONDING<br />

The secretary or secretary-treasurer <strong>of</strong> each burial association<br />

shall execute a bond payable to the Burial Association<br />

Administrator as trustee for the burial association in some<br />

bonding company licensed to do business in this state, as<br />

approved by the Burial Association Administrator, in an amount<br />

required by G.S. 58-<strong>24</strong>1.23. The amount <strong>of</strong> such bond will be<br />

reviewed annually by the administrator for the purpose <strong>of</strong><br />

determining whether such bond shall be increased or decreased<br />

to comply with this Regulation.<br />

Authority G.S. 90-210.80.<br />

SECTION .0600 - ASSUMPTION OF ASSETS AND<br />

LIABILITIES<br />

04 <strong>NC</strong>AC 04 .0601 DEFINITIONS<br />

Definitions as used in this Section:<br />

(1) "Domestic Mutual Burial Association" means<br />

a North Carolina mutual burial association or<br />

associations whose assets and liabilities are<br />

assumed or sought to be assumed by a North<br />

Carolina or foreign mutual burial association<br />

or by a North Carolina or foreign insurance<br />

company;<br />

(2) "Assume" means to legally be responsible for<br />

the assets and liabilities <strong>of</strong>, merge or<br />

consolidate two or more domestic mutual<br />

burial associations with a North Carolina or<br />

foreign mutual burial association or North<br />

Carolina or foreign insurance company;<br />

(3) "North Carolina Mutual Burial Association"<br />

means any mutual burial association organized<br />

in North Carolina other than a domestic<br />

mutual burial association;<br />

(4) "Foreign Mutual Burial Association" is a<br />

mutual burial association organized under the<br />

laws <strong>of</strong> a state other than North Carolina;<br />

(5) "Foreign Insurance Company" is an insurance<br />

company organized under the laws <strong>of</strong> a state<br />

other than North Carolina.<br />

Authority G.S. 90-210.80.<br />

04 <strong>NC</strong>AC 04 .0602 NOTICE OF N.C. MUTUAL<br />

BURIAL ASSOCIATION COMMISSION<br />

Whenever either a North Carolina or foreign insurance company<br />

or North Carolina or foreign mutual burial association desires to<br />

assume the assets and liabilities <strong>of</strong> one or more North Carolina<br />

domestic mutual burial association(s), it shall notify the state<br />

burial administrator in writing at least 30 days prior to the public<br />

meeting <strong>of</strong> mutual burial association members hereinafter<br />

required.<br />

Authority G.S. 90-210.80.<br />

04 <strong>NC</strong>AC 04 .0603 NOTICE TO MEMBERS OF<br />

DOMESTIC MUTUAL BURIAL ASSOCIATION<br />

Such North Carolina or foreign insurance company or mutual<br />

burial association referred to in Rule .0602 shall cause to be<br />

published for two consecutive weeks in a newspaper published<br />

in the county or an adjoining county where such domestic<br />

mutual burial association or mutual burial associations are<br />

located, at least 30 days prior to the second publication, a notice<br />

<strong>of</strong> a public meeting <strong>of</strong> the members <strong>of</strong> the domestic mutual<br />

burial association. Such notice shall contain notification <strong>of</strong> the<br />

purpose <strong>of</strong> the meeting and the time and place <strong>of</strong> such meeting.<br />

In the event the assets and liabilities <strong>of</strong> more than one domestic<br />

mutual burial association are desired to be assumed, separate<br />

notices and separate meetings shall be held.<br />

Authority G.S. 90-210.80.<br />

04 <strong>NC</strong>AC 04 .0604 CONDUCT OF PUBLIC<br />

MEETING<br />

At the public meeting or meetings required by Rule .0603, a<br />

representative or representatives <strong>of</strong> the North Carolina or foreign<br />

insurance company or mutual burial association shall explain to<br />

the attending members <strong>of</strong> the domestic mutual burial association<br />

the proposed terms <strong>of</strong> the assumption <strong>of</strong> the assets and liabilities<br />

<strong>of</strong> the domestic mutual burial association. A quorum <strong>of</strong><br />

domestic mutual burial association members shall conclusively<br />

be presumed if 15 <strong>of</strong> the paid-up members <strong>of</strong> the domestic<br />

mutual burial association are present.<br />

At such meeting a voice or ballot vote, at the discretion <strong>of</strong> the<br />

president or vice-president <strong>of</strong> the domestic mutual burial<br />

association who shall preside, shall be taken on the question <strong>of</strong><br />

whether the domestic mutual burial association shall permit its<br />

assets and liabilities to be assumed by the domestic or foreign<br />

mutual burial association or insurance company seeking such<br />

action.<br />

The assumption <strong>of</strong> such assets and liabilities shall be deemed<br />

approved if a simple majority <strong>of</strong> those currently paid-up<br />

members present and voting vote in the affirmative.<br />

<strong>24</strong>:<strong>19</strong> NORTH CAROLINA REGISTER APRIL 1, 2010<br />

1696

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