NC Regulations for Life Insurance

Commissioner of Insurance

-elected by the people of NC -serves 4 year term in office -required to report any violation of insurance to the Attorney General

how many days does the Commissioner give in a written notice for all hearings

10 days

temp license is good for..

180 days

pre licensing requirement

20 hours for each license

continuing education requirement is

24 hours every 2 years which 3 hours must be ethics **this is requirements for insurance agents to maintain their ability to sell different types of insurance products after getting licensed by the state department of insurance (DOI). paperwork must be kept for 5 years

how much of commissions can an agent share with another licensed agent

50%

which a written request for access to recorded personal info

WITHIN 30 BUSINESS Days inform the individual of the meaning of the info and give a copy

replacement policies must contain

a 30 day free look

a person who acts without the proper insurance license is guilty of

a misdemeanor and fined 1000 to 5000 for each day the violation occurs

insurance contract

agreement between the insurer (the insurance company) and the insured (client)

viatical settlement

an arrangement in which someone with a terminal disease sells his or her life insurance policy at a discount from its face value for ready cash. **can be expected to result in death within 24 months

commingling

an illegal practice when clients funds are deposited with the general agency funds

alien insurer

an insurer with a home office in another country but authorized to do business in NC

foreign insurer

an insurer with a home office in another state

to get a brokers license in NC

applicant must maintain a bond in the amount of 15,000 for the use of displeased parties

limited insurance representative

could sell credit life, travel accident or dental coverages

license suspension

failure to pay child support use of fraud practices making an untrue statement on the license application

broker

insured

insurers may not discriminate based on

race color nation or ethnic origin

replacement rules to life insurance do not apply to:

group life group annuities credit life nonconvertible term that expires in 5 years or less

twisting

if an insurer makes a statement misrepresenting or incompletely comparing the terms of any insurance policy to induce a policyholder to drop and existing policy, HURTS insured person

agent

insurer

Guaranty Association

is designed to prevent insurer insolvencies and to pay claims within limits to the insolvent insurer **insolvent=when insurer does not have the funds to meet financial obligations

Purpose of Insurance Information and Privacy Protection Act

is to establish standards for the collection and use of info gathered by insurers and agents

rebate

offering a client something of value that is not specified in the policy ILLEGAL

when is the Commissioner required to investigate all domestic insurers

once every 5 years

Class 1 Misdemeanor

person who knowingly obtains info about an individual from an agent or the insured under false pretenses is guilty of this

felony

person who knowingly presents a fraudulent claim to an insurer is guilty of this also who embezzles a clients monies is guilty of this

if the Commissioner denies an initial application for an agent

the applicant may request a review within 30 days of receiving notification of the denial

unfair trade practices

unfair: methods of competition deceptive acts claims settlement practices

unfair discrimination

using blindness or deafness as an underwriting factor in life insurance

coercion

lender cannot require that a borrower buy insurance from them

reporting change in residence

licensee must report any change in residence or email address to the Commissioner within 10 days of the change violation is a 50 dollar fee moving out of state, must surrender license to the commissioner within 30 days

person who violates a cease and desist order related to Information and Privacy Protection Act

may be fined a fine of no more than 50,000

any licensee who fails to keep adequate books and records

may have his or her license suspended for 1 to 6 months

Examples of unfair methods of competition and unfair or deceptive practices in NC

misrepresentation defamation false financial statements rebates discrimination twisting deceptive practices

in an insurance application when should a notice be provided

no later than the policy delivery date or the date when personal information is collected from a source other than the applicant or public records

notice with policy renewal

no notice is required is info is collected from policyholder or public records or if a notice is given within the past 24 months