Chapter 7: NC laws and rules pertinent to insurance

Person

A person is any individual, partnership, firm, association, corporation, joint-stock company, trust, or any similar entity.• The singular form includes the plural, and the masculine form includes the feminine wherever appropriate

Blank Contract Application

An agent who signs a blank contract application or policy of insurance is guilty of a misdemeanor. The fine for this can be anywhere between $1,000 and $5,000.

Authorized insurer:

An insurance company that has qualified and received a Certificate of Authority from the Insurance Department to sell insurance in this state. • Also called an admitted insurance company

Assumed names

An insurance producer doing business under any name other than the producer's legal name shall notify the Commissioner before using the assumed name.

Fraudulent Claims

Anyone who knowingly provides an untrue, false or fraudulent claim to an insurance company is guilty of a felony. Whenever a licensee is aware and knows that a person has violated a fraudulent claim or embezzled, it is that person's duty to notify the Commissioner or risk suspension or revocation of their license.

New Residents

Licensed agents moving to North Carolina from another state have 90 days within cancelling their previous license to apply for a resident license here. After 90 days, the applicant must complete pre-license education and pass the state exam in North Carolina.

Cease and desist order

The Commissioner has the authority to examine and investigate the affairs of any person engaged in the business of insurance in this state. Based on the investigation, the Commissioner may issue a cease and desist order. Any person who willfully violates a cease and desist order of the Commissioner may be subject to a fine of $1,000 to $5,000 for each violation.

Exemption From Examination

The Commissioner may exempt an applicant from the licensing exam if that person meets the following criteria; • An applicant who has obtained the designation of Chartered Life Underwriter (CLU), Chartered Financial Consultant (ChFC), Life Underwriter Training Council Fellow (LUTCF), Chartered Property and Casualty Underwriter (CPCU) or Fellow of Life Management Institute (FLMI).

Duties of the replacing agent

• Present to the applicant a Notice Regarding Replacement that is signed by both the applicant and the agent. A copy must be left with the applicant. • Obtain a list of all existing life insurance and/or annuity policies to be replaced including policy numbers and the names of all companies being replaced. • Leave the applicant with the original or a copy of written or printed communications used for presentation to the applicant. • Submit to the replacing insurance company a copy of the Replacement Notice with the application.

Nonresident agents

An agent who holds a resident license in a different state may apply for a nonresident license in North Carolina, as long as both states have a reciprocal agreement. To apply, nonresidents must submit an application form, proof of resident license in good standing, and fees. Nonresident agent applicants do not have to take the North Carolina state licensing exam but must not have committed any act for which the license could be denied, suspended, or revoked.

Policy summary and buyer's guide

An agent who sells an individual life insurance policy in North Carolina must deliver to the policyowner a Policy Summary and Buyer's Guide.

Unauthorized insurer:.

An insurance company that has been denied or not yet applied for a Certificate of Authority and may not sell insurance in this state. Any agent that sells an insurance policy for an unauthorized insurer runs the risk of being responsible for unpaid claims. • Also called a non-admitted company • Any person or entity who solicits, negotiates, or sells insurance for an unauthorized insurance company is guilty of a misdemeanor and will be liable for any losses or unpaid claims.

Stock Insurance Company:

An insurance company that is owned and controlled by stockholders (shareholders). The stockholders provide the capital and share in profits or losses. • Stock insurance companies are considered nonparticipating because the policyowners do not share in the profits of the company. • The objective is to produce profits for the owners, the stockholders. • A stock insurance company that issues both participating and nonparticipating policies is referred to as a company doing business on a mixed plan.

Denial of License

If the Commissioner refuses to issue a license for any reason, a license may be suspended, revoked, or denied. The applicant will be notified in writing. Within 30 days after service of the notification, the applicant may make a written appeal to the Commissioner for a review. The review must be completed without undue delay, and the applicant must be notified promptly in writing as to the outcome of the review. If the applicant still disagrees with the outcome, he or she may appeal for a hearing within 30 days.

Grace Period

Life insurance policies must provide a grace period of 31 days after the due date. If the insured dies during the grace period, the insurance company may deduct any premium due from the death benefit.

Temporary License

The Commissioner may issue a temporary insurance agent license for a maximum period of 180 days (or longer for good cause) without requiring an examination if the Commissioner deems that the temporary license is necessary for the servicing of an insurance business. • A temporary license may be issued in cases where an agent has become disabled or dies, requiring a replacement to service the agent's business • A temporary license may also be issued in cases where the agent becomes activated for military service

North Carolina Life and Health Guaranty Association

The North Carolina Life and Health Guaranty Association provides claim payments of admitted, insolvent (financially incapacitated) insurers. Agents are prohibited from using the existence of the North Carolina Guaranty Association for selling, soliciting, or inducing purchase of an insurance policy. For any one person, the Guaranty Association will provide: • Contractual obligations provided by the insurer • $300,000 in life insurance death benefits and $300,000 in cash values • $300,000 for coverages not defined in health benefit plans • No more than $500,000 in health benefit plans • $300,000 in health insurance; disability; long-term care insurance • $300,000 in present value annuity benefits • $5,000,000 in benefits for those covered by any unallocated annuity or $1,000,000 in benefits and cash valueThe North Carolina Life and Health Guaranty Association is not obligated to cover more than $300,000 in benefitsThe Life and Health Guaranty Association is funded by insurance companies through assessments.

Duties of the replacing insurance company

• Require from the agent a list of the applicant's life insurance or annuity contracts to be replaced and a copy of the replacement notice provided to the applicant. • Send each existing insurance company a written communication advising of the proposed replacement within a specified period of time of the date that the application is received in the replacing insurance company's home or regional office. A policy summary or ledger statement containing policy data on the proposed life insurance or annuity must be included.

Alien insurance company:

A company that is chartered and organized in any country other than the United States. It is considered an alien company in all states. - A company chartered in Canada would be an alien company in North Carolina

Domestic insurance company:

A company that resides and is incorporated under the laws of the state in which its home office is located. - A company domiciled in North Carolina would be a domestic company in North Carolina

Foreign insurance company:

A company whose home office is located in another state. It is considered to be a foreign company in all states except for its home office. - A company domiciled in Pennsylvania would be a foreign company in North Carolina

Required Insurance (Forced Insurance)

A lender cannot require anyone to purchase insurance from them or an affiliate as a condition for approving, refinancing, renewing or make part of the terms of the loan.

Licensee

A licensee is any person who holds a license.

Free Look

A policyowner has 10 days to return an Accident/Health insurance policy and receive a full refund on premiums.

Prearranged Funeral Contracts

A prearranged funeral contract is a life insurance policy in which the purpose is to fund a funeral for an insured. These polices may be individual or group coverage. Before accepting the initial premium, the agent must make these disclosures: • The relationship between the prearrangement and the life insurance policy • The fact that the life insurance policy will be funding the prearrangement • The nature of the relationship of everyone involved

Contestability after reinstatement

A reinstated life insurance policy or annuity may be contested by the insurance company on account of fraud or misrepresentation under the same conditions with respect to contestability after original issuance.

Incontestability

After a policy has been in force for two years, the insurance company cannot contest the validity of the policy for any reason other than failure to pay the premiums.

Solicitation and sales presentations

Agents must provide applicants and prospects with the approved NAIC Buyer's Guide. Agents must also provide a Policy Summary to applicants.

Address/name change

Agents must report a change in address or name to the Commissioner within 10 business days of the change.

Ethical Standards

Agents, brokers, and other insurance company representitives must conduct themselves in a professional manner. Below are some important ethical standards to keep in mind; • Act fairly and honestly • Immediately identify yourself and your role • Carry your insurance license while performing insurance duties • DO NOT accept gratuity for referrals to other providers of service • DO NOT intimidate or discourage a client from seeking advice or counsel

Statements in Application

All statements or descriptions in any application for a policy of insurance, or in the policy itself, are representations and not warranties. A representation, unless material or fraudulent, will NOT prevent a recovery on the policy.

commingling

An agent who has combined premiums collected with personal funds has engaged in commingling, which is a prohibited act.

Conservation

An agent's attempt to stop the replacement of an existing life insurance policy or annuity is known as conservation.

Process

An applicant for a resident agent license in North Carolina must submit an application to the Commissioner and • Be at least 18 years of age • Not have committed any act that is grounds for denial, suspension, or revocation • Completed a 20-hour pre-licensing course • Have passed the state exam for the lines of authority in which licensure is sought • Submit the application with fees • Not intend to use the license primarily to write controlled business • Be deemed trustworthy and competent

Agent

An individual who in any manner sells, solicits, or negotiates insurance on behalf of insurance companies for compensation is an insurance agent. • The licensing of insurance agents is needed to protect the public. • In North Carolina, an individual agent is considered to represent the insurance company. • A licensee may not transact insurance business in North Carolina until the licensee is appointed by an insurer.

Broker

An insurance broker in North Carolina is a representative of the insured.

Domestic, Foreign, and Alien Companies

An insurance company is classified according to the location of its corporation. Regardless of where the insurance company is incorporated, it still has to get a Certificate of Authority before transacting insurance within a state.

Notice of lapse

An insurance company must provide a notice to the insured 15 days before a policy will be cancelled or lapsed due to nonpayment.

Mutual life insurance companies:

An insurance company owned and controlled by its policyowners. These policyholders elect a board of trustees or governing body to manage the firm. The profits of a mutual insurance company are returned to the policyowners in the form of dividends or retained as surplus to meet future obligations. • Mutual insurance companies are considered participating because the policyowners do share in the profits of the company. • The objective is to provide insurance to its owners, the policyowners, at the lowest net cost.

Claim forms

An insurance company will send forms for filing proof of loss to a claimant within 15 days after the company receives notice of a claim.

Suicide

An insurer may exclude liability for paying a death claim in a life insurance policy if the insured commits suicide within two years of policy issue. The insurer will return the premiums if the insured commits suicide within that period

Termination of agent appointment

An insurer that terminates an agent appointment must notify the Commissioner within 30 days of the date of termination. Within 15 days of such notice, the insurer must mail a copy of the notice to the terminated agent, after which the agent will have 30 days to submit written comments to the Commissioner.

Disclosure

Any information required to be disclosed by the insurer cannot be minimized or intermingled within the text of advertisement so as to be confusing or misleading. Also, advertisements may not omit information or use statements, references, or illustrations that will mislead or deceive prospective purchasers.

Form, classification, and rates

Before an insurance policy is issued or delivered, the form, classification or risks, and premium rates must be filed with the Commissioner of Insurance.

Company

Company, insurance company, or an insurer includes any corporation, association, partnership, society, order, individual or aggregation of individuals engaging or attempting to engage in the insurance business.

Department

Department is the Department of Insurance of North Carolina.

Direct response

Direct response solicitation means any offer by an insurance company to persons in this state (either directly or through a third party) to effect life or health insurance coverage which enables the individual to apply for the insurance on the basis of the offer.

Immunity

During a fraud investigation, the Commissioner may request documents from a person concerning the transaction. The person must provide the documents and is not subject to liability or slander, unless the person acted maliciously.

contestability period (time limit on certain defenses)

EXCEPT for fraud, the time after issuance of a policy during which an insurance company may contest a health insurance claim due to the statements on an application is 2 years from the date of issue.

Complaint Record

Each insurer or its agents must maintain, for at least 5 years, a log of all written complaints listing the following: • Department file number; • Name of insured; • Nature of the complaint, • Department subject to the complaint; • Policy or claim number of the insured; and • Disposition of the complaint.

Medical examinations and lab tests including HIV

For underwriting an individual policy, insurers may require proposed insureds to undergo an HIV test, but only in conjunction with other medical tests. The basis for requiring an HIV test cannot be the proposed insured's sexual orientation. The insurer must obtain written consent from the proposed insured in order to conduct the HIV test.

Age limits

If a company accepts a renewal premium payment that would extend coverage beyond the policy's maximum age limit, the company must continue the coverage to the end of the period of time for which the premium was accepted.

policy forms

If an insurer has been notified by the Commissioner of Insurance that an individual Health Policy form does not comply with the state's laws, the insurer may not issue the form in connection with any new applications.

Illustrations

Illustrations are charts, graphs, and numerical data that depict the non-guaranteed elements of a policy over time. Non-guaranteed elements are premiums, benefits, values, credits, or charges under a policy of life insurance that are not guaranteed or not determined when the policy is issued. A life insurance illustration showing future premiums being paid out of nonguaranteed values must disclose that the policyowner may need to resume premium payments, depending on actual results.

Prohibited Discrimination/Sickle-Cell Trait

Insurers may not discriminate against applicants who are diagnosed with sickle-cell trait or hemoglobin-C trait.

Boycott, coercion, and intimidation

It is an illegal practice to commit or coordinate any act or boycott, coercion, or intimidation in order to restrain or monopolize the business of insurance.

False advertising

It is an illegal practice to falsely advertise insurance products or publish misleading information about its insurance coverage. This includes making false statements about the financial condition of an insurer.

Defamation

It is an illegal practice to make any public statement or advertisement that contains false information or unsubstantiated criticisms about an insurance company intended to harm or malign.

Misrepresentation

It is an illegal practice to misrepresent any fact about an insurance policy, such as policy terms, benefits, value, cost, effective date, or existence of a contract of insurance.

Unfair discrimination

It is an illegal practice to unfairly discriminate against a person in any way on an insurance-related matter. An example would be charging a different rate for someone in the same actuarial class. Fair discrimination is necessary for the issuance of life insurance policies, which is based on mortality.

Rebating

It is illegal to offer a prospective client something of value that is not specified in a contract to induce the purchase of an insurance policy. This does not include sharing commissions with other licensed and appointed agents.

False financial statements

It is illegal to publish any false financial statement regarding a person or entity.

Minors

Minors in North Carolina age 15 and up can enter into life insurance contracts and have all the rights that come with ownership.

Commissions

No person shall pay or accept commissions to/from an unlicensed individual for the purpose of selling or negotiating insurance business.

Exemption from creditors

Proceeds from a life insurance policy are protected from any claims by a creditor of the insured as long as there is a named beneficiary.

Replacement

Replacement is strictly regulated and requires full disclosure by both the agent and the replacing insurance company. Replacement regulations exists to assure that purchasers receive specified information and it also reduces the opportunity for misrepresentation. Policy replacement is defined as a transaction in which a new policy or contract is to be purchased, and the agent is aware that an existing policy or contract has been, or will be: • Lapsed, forfeited, surrendered or partially surrendered, assigned to the replacing insurer or otherwise terminated • Converted to reduced paid-up insurance, continued as extended term insurance, or otherwise reduced in value by the use of nonforfeiture benefits or other policy values • Modified to cause a reduction in benefits or length of policy term • Subjected to loans exceeding 25% of the cash value• Reissued with a reduction in cash value • Used in a financed purchase

Continuing education

Resident agents must complete 24 hours of continuing education every 2 years to keep their license active. 3 of those hours must be in ethics. • The Board of Insurance Agent Education develops the continuation education program and submits the proposal to the Commissioner for approval. • Nonresident agents are not required to complete North Carolina continuing education requirements as long as their home state requirements are met.

Soliciting

Soliciting is any effort to influence a person to buy an insurance product from you.

Financial planner/consultant

Terms such as "financial planner" or "financial consultant" may not be used by life insurance agents to imply that they are generally engaged in an advisory business in which compensation is unrelated to sales UNLESS such is actually the case.

Notice and hearing

The Commissioner may call and hold hearings for any purpose deemed necessary. At least 10 days written notice will be given to all persons affected by the hearing.

Examination of records

The Commissioner may conduct a financial examination of any insurance company as often as deemed appropriate. At the very least, a company shall be examined once every 5 years.

Probation, suspension, revocation, refusal to issue or renew of licenses

The Commissioner must give written notice to the agent before holding a hearing that may lead to the suspension or revocation of the agent's license. The Commissioner may place on probation, suspend, revoke, refuse to renew, or deny a license to any person who has: • Provided incorrect, misleading, incomplete, or untrue information in the license application • Violated any insurance laws, regulations, subpoena, or orders from the Commissioner • Attempted to obtain a license through fraud or misrepresentation • Intentionally misrepresented the terms of an insurance contract • Been convicted of a felony • Committed any insurance unfair trade practice • Used fraudulent, coercive, or dishonest practices or demonstrated incompetence, untrustworthiness, or financial irresponsibility in this or any other state. • Had an insurance license denied, suspended, or revoked by another state • Forged a name to an insurance document or application • Cheated on an insurance license examination • Knowingly accepted insurance business from an unlicensed individual • Failed to comply with a court order imposing child support • Failed to pay state income tax

Fingerprinting

The Commissioner requires fingerprinting within 30 days of applying for a resident insurance license.

Buyer's guide

The buyer's guide enables applicants to compare different life insurance policies and help them choose which policy is best for their needs.

Unfair Claims Methods

The following acts, omissions, or practices are defined as unfair and deceptive claim settlement practices when knowingly committed or performed with such frequency as to indicate a general business practice, and are prohibited: • Misrepresenting to insureds pertinent facts or policy provisions relating to coverage at issue • Failing to acknowledge and act reasonably promptly upon communications with respect to an insurance claim • Failing to adopt and implement reasonable standards for prompt investigation and processing of insured's claims • Failing to affirm or deny coverage of claims within a reasonable time after proof of loss statements are completed and submitted by insureds • Not attempting in good faith to effect prompt, fair, and equitable settlements of claims for which liability has become reasonably clear; Refusing or delaying a settlement solely because there is other insurance available to partially or entirely satisfy the claim loss; the claimant who has a right to recover from more than one insurer has the right to choose the coverage from which to recover and the order in which payment is to be made. • Compelling insureds to initiate suits to recover amounts due under an insurance policy by offering substantially less than the amount ultimately recovered in those suits

Free look period

The free-look period allows the policyowner time to decide whether or not to keep it. If the policyowner decides not to keep the policy within the free-look period, a full refund will be given. In North Carolina, life insurance policies must provide a minimum free-look period of 10 days upon policy delivery. A delivery receipt is a signed document that starts the free-look period.

Grace Period

The grace period for health and accident insurance is required to be no less than 7 days for weekly premium policies, 10 for monthly premium policies, and 31 for all other policies. If premium is paid within the grace period, coverage shall remain in effect.

Policy summary

The policy summary contains specific information on the provisions, benefits, and coverage of the policy applied for.

Insurance Information and Privacy Protection Act

The purpose of this Act is to establish standards for the collection, use, and disclosure of information gathered during an insurance transaction. The Insurance Information and Privacy Protection Act is designed to limit or direct the information collection activities of: • agents and limited representatives • insurance support organizations • insurance companies The Insurance Information and Privacy Protection Act requires that an applicant for an individual insurance policy be notified of an investigation into his personal character, general reputation, and mode of living.An insurance company MUST clearly specify questions designed to obtain information solely for marketing research in any insurance transaction.When access to recorded personal information is requested following an adverse underwriting decision, the insurer must make the information available within 30 business days. Any reported violations of this Act require the Commissioner of Insurance to issue and serve a statement of charges and notice of hearing. The date of such hearing shall be at least 10 days after service of charges.

Twisting

Twisting is inducing or attempting to induce any insured person through misrepresentation to lapse, forfeit, or surrender insurance. The reason for this is normally to sell an insurance policy with another insurer.

restricted license

the commissioner may issue an annually renewable restricted license valid for representing an insurer in a foreign country or on a U.S. military base,

Policy Loan Interest Rate

• The maximum fixed interest rate charged by insurers is 8% in North Carolina • An insurance policy has the right to defer granting a policy loan for a maximum of 6 months after receiving a request for the loan

Notice of Premium Default

A life insurance company cannot declare a policy lapsed or forfeited within one year after default in premium payment, unless it has mailed a notice indicating the amount of premium due. This requirement only applies to policies with an annual premium schedule, and not to policies that are payable monthly (or shorter intervals), or to group insurance and term insurance contracts for one year or less. A policy may not be lapsed or forfeited within 30 days after the notice has been sent. • Policies that don't have a grace period, the notice must be sent at least 15 days, but no more than 45 days, prior to the due date. For policies with a grace period, the notice must be sent at least 5 days, but no more than 45 days, prior to the due date.

Industrial Life

Industrial life insurance is a form of life insurance that: • Do not exceed a face amount of $1,000 • Have premiums that are payable monthly or more frequently (weekly, bi-weekly) • Have the words "Industrial Policy" printed upon the policy.

Interest payments on death benefits

Upon the death of the insured, payments made after 30 days from the receipt of satisfactory proof of loss must receive the insurer's current interest rate, computed from the date of death.

Insurable interest

• Insurable interest exists on the lives of those individuals who wish to sell (upon their death) their shares of stock or ownership shares in a company to those individual(s) contracted to buy these shares. • Employers have insurable interest in the lives of their employees. An employer may insure the life of an employee as long as the proposed insured provides prior written consent. • A married person has insurable interest in the life of his or her spouse, even in the absence of an economic interest.

Group Life Insurance

• The employees eligible for group insurance under the policy shall be all of the employees of the employer. • In the event of a termination of a group life plan or termination of a covered employee, a person covered by a group policy has the right to convert such coverage to an individual policy within the conversion period (31 days) without proving insurability. If this right is exercised, the employee is responsible for the payment of premium. There are no restrictions regarding the assignment of coverage under a group life insurance policy

Impersonation

A licensee who advertises or markets themselves as something they are not has engaged in impersonation (i.e.; a producer who advertises themselves by a name or trade name other than the one appearing on the license on record). A specific fine may apply to impersonation without permission from the Commissioner.

Reinstatement and renewal

A licensee who allows his or her license to lapse may, within 4 months from the renewal date, reinstate the license without retaking a pre-licensing course and state licensing exam. Continuing education requirements still need to be met and a reinstatement fee applies.

Viatical settlements

A viatical settlement contract is an agreement under which the owner of a life insurance policy sells the policy to another person in exchange for a bargained-for payment, which is generally less than the expected death benefit under the policy. • The viator is considered to be an individual suffering from a terminal illness or severe chronic illness who sells his/her life insurance policy to a viatical settlement provider. • The viatical settlement provider becomes the policyowner and assumes responsibility for paying premiums. When the insured dies, the provider receives the death benefits. • Proceeds of the viatical settlement contract could be subject to the claims of creditors. • Viatical settlement brokers are insurance agents licensed to solicit viatical settlement agreements between providers and policyowners (viators), charging a fee for their services. • An agent must obtain a license to transact viatical settlements in North Carolina.

Agent appointments

An agent cannot act as an agent for an insurer unless he or she is appointed to work for that insurer. Insurers are responsible for submitting an appointment notice to the Commissioner within 30 days of an agent's appointment or submission of first insurance application. The insurer is also responsible for paying the agent's appointment renewal fee.

Controlled business

Controlled business can be defined as policies written on people that the licensed agent has direct influence over: including family, employers, and/or any company to which the agent has stock control. Obtaining a license for the primary purpose of writing controlled business is prohibited.

Business Records

Every insurance agent/broker MUST maintain all records, books, and documents for insurance transactions for a period of no less than 5 years.

Fraternal Benefit Society

Fraternal Benefit Societies are a corporation, society, or order that have a representative form of government and are organized through a lodge system. Fraternal benefit societies exist for the benefit of its members and their beneficiaries. • Fraternal Benefit Societies may provide: death benefits, endowment benefits, annuity benefits, disability benefits, and hospital/medical/nursing benefits • Agents for a fraternal benefits society must be licensed in accordance with general insurance laws if they are receiving a commission OR if they are soliciting outside of the membership • Fraternal benefit society agents do not need to pass an exam or be licensed if they do not receive commission • A Fraternal Benefit Society is a nonprofit entity

Reporting of actions

If a licensee is convicted in any court for any crime or offense other than a motor vehicle infraction, the licensee must notify the Commissioner 10 days after the date of conviction. When an agent reports a final disposition of an administrative action against the agent to the Commissioner, the report must include a copy of the order or other relevant legal documents.

False Statements

If a licensee or person willingly misstates information on any financial document or statement, they are guilty of perjury, and the entity in which they represent is subject to a fine between $2,000 and $10,000.

Binders As Evidence

Lenders must accept binders or temporary insurance contracts as evidence of insurance as long as they meet the following criteria; • they include standard insurance contract provisions • they include applicable contract endorsements • they include a paid receipt for a full year premium Note: The law doesn't prohibit a lender from refusing to accept a binder as evidence, as long as the refusal is reasonable. Premium Payment by Credit Card An insurer or agent may accept premium payments by credit card as long as the payment option is available to all existing clients and if the insurer pays all applicable credit card processing fees.

commissioner of insurance

The Commissioner of Insurance enforces all laws of the state governing insurance companies and makes rules and regulations relating to the business of insurance. The Commissioner is elected to office for a term of 4 years. If a vacancy occurs during the term, it shall be filled by the Governor for the unexpired term. The Commissioner's powers and duties include: • Enforcing and carrying out all the provisions of the General Statutes • Adopting rules and regulations to enforce provisions of the General Statutes • Adopting rules pertaining to solicitation of proxies, including financial reporting of equity securities of any domestic stock insurance company • Approving forms used by companies, association, orders, or bureaus • Receiving and thoroughly examining all financial records • Reporting in detail to the Attorney General any violation of insurance laws • Instituting civil actions or criminal prosecutions by the Attorney General for any violation • When requested by any citizen of this state, providing a synopsis of the provisions of any insurance contract which is offered or issued • Compiling and making available to the public lists of rates charged, including deviations, and explanations of coverages that are provided by insurers

Reinstatement

Unless a policy has been surrendered for its cash value, a policy can be reinstated within 5 years after the date of premium default. The requirements of reinstatement include: • Written application • Payment of any past due premiums or indebtedness to the insurer • Evidence of insurability