What must an insurance agent disclose before selling a prearranged funeral contract?

In North Carolina, before selling a prearranged funeral contract, an insurance agent is required to disclose the cooling-off period. This period allows individuals time to reconsider their decision post-purchase. It provides consumer protection by ensuring that people are not rushed into decisions regarding funeral arrangements, which can often involve significant emotional considerations and financial commitments. It emphasizes the importance of the buyer understanding their rights to cancel the contract within a certain timeframe without penalty.

Disclosing the cooling-off period is particularly crucial in the context of prearranged funeral contracts because these agreements may be entered into at a vulnerable time for families. Highlighting the option to change one's mind ensures a level of transparency and gives consumers added security regarding their purchasing decision.

While aspects such as the total price of the contract, the agent’s licensing status, and the commission amount are essential for overall transparency, the legal requirement to disclose the cooling-off period directly addresses the consumer's right to think carefully about their decision before finalizing a potentially irreversible contract.