North Carolina Funeral Law Practice Exam

Which entity is identified as a preneed licensee?

1. Smith Funeral Home

2. Grant Mortuary, Inc.

3. Greenwood Cemeteries

4. Piedmont Cremation Services

The correct answer is: Grant Mortuary, Inc.

A preneed licensee is an entity licensed to sell funeral services or burial arrangements before the actual need arises, often referred to as preneed or prearranged funeral services. This requires specific licensure under state laws governing funeral services to ensure consumer protection and adherence to financial regulations. Grant Mortuary, Inc. is identified as a preneed licensee because it actively engages in selling preneed funeral services, adhering to the legal requirements set by the state of North Carolina for such entities. These licensed businesses must comply with regulations that govern how they manage and protect funds paid in advance for services not yet rendered. In contrast, while Smith Funeral Home, Greenwood Cemeteries, and Piedmont Cremation Services may provide funeral or burial services, they are not specifically indicated as preneed licensees in this context. The distinction lies in their capacity and certification to offer preneed plans, which involves a more specialized licensing process and regulation than standard funeral service provision.