NC Register Volume 24 Issue 19 - Office of Administrative Hearings
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 />
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