Module 8 - NC General Statutes & Regulations
**NOTE**
A Class 1 Misdemeanor has a penalty of $1,000 - $5,000 and/or an imprisonment for 30 days but no more than 1 year.
**NOTE**
A Property, Casualty or Personal Lines Insurance Producer may not simultaneously hold an Adjuster's license.
Alien company
A company incorporated or organized under the laws of any jurisdiction outside of the United States.
Foreign company
A company incorporated or organized under the laws of the United States or of any jurisdiction within the United States other than this State.
Domestic company
A company incorporated or organized under the laws of this State.
Business Entity
A corporation, association, partnership, limited liability company, limited liability partnership, or other legal entity. Business entity does not mean a sole proprietorship.
Adverse Underwriting Decision
A decision by the insurer that is different from the insurance applicant's request. For example, a higher premium or rejecting the risk would be an adverse underwriting decision.
License
A document issued by the Commissioner authorizing a person to act as an insurance producer for the kinds of insurance specified in the document. The license itself does not create any authority, actual, apparent, or inherent, in the holder to represent or commit an insurance carrier.
58-3-140 Temporary contracts of insurance permitted
A lender engaged in making or servicing real estate mortgage or deed of trust loans on one to four family residences must accept as evidence of insurance a temporary written contract of insurance meeting the requirements of the insurance code of North Carolina and issued by any duly licensed insurance producer or insurance company. Nothing herein prohibits the lender from refusing to accept a binder or from disapproving such insurer or Insurance producer provided such refusal or disapproval is reasonable.
Insurance Broker
A licensed insurance producer who obtains insurance for third parties through an insurance producer of the insurance company for which the Insurance Broker is not authorized to act as an insurance producer. For example, a client of the Insurance Broker wants a policy from a company that the Insurance Broker is not appointed with. As an Insurance Broker, he or she can use an appointed insurance producer of the company to obtain the desired insurance for his or her client. An Insurance Broker's license may be issued to cover insurance authorized by his or her insurance producer's license. The Broker must purchase a Surety Bond for no less than $15,000 per line of authority.
Required Reporting of Administrative Action
A licensee must report to the Commissioner any administrative action taken against him or her in another state or by another government agency in North Carolina within 30 DAYS after the final disposition of the matter. Within 30 DAYS after the initial pretrial hearing date, a licensee must report to the Commissioner any criminal prosecution taken in any state.
**NOTE**
A person applying for a Limited Lines Representative or Motor Vehicle Damage Appraiser license is not required to take a licensing course or state exam.
58-33-31 Application for license
A person applying for a resident insurance producer license must make application to the Commissioner and declare that the statements made in the application are true, correct, and complete to the best of the individual's knowledge and belief. Before approving the application, the Commissioner must find that the individual is at least 18 YEARS of age, has not committed any act that is a ground for probation, suspension, nonrenewal, or revocation, has successfully passed any examinations required by statute.
Limited Lines Representative
A person authorized to sell contracts for the type of insurance as identified by the license. Limited Lines includes Dental Services, Limited Line Credit Insurance, Motor Club, Prearrangement Insurance often called Funeral, Burial Insurance or Pre-needs Insurance, Travel Accident and Baggage and Vehicle Service Agreements and Mechanical Breakdown Insurance.
Insurance Producer
A person licensed to solicit insurance applications or to negotiate an insurance policy. Any unlicensed person who solicits or negotiates a policy on behalf of an insurance company is considered an insurance producer. Both the insurer and the unlicensed person face the same liability as if the insurance producer were licensed.
Adjuster
A person who investigates or reports claims arising under insurance contracts to insurance companies except for life insurance or annuity contracts. Adjusters are NOT required to take prelicensing education, but candidates MUST pass a state license exam.
Motor Vehicle Damage Appraiser
A person who investigates the relative nature and amount of damage to motor vehicles for salary, fee, commission or other compensation.
58-2-161 False Statements to Procure Benefit of Insurance Policy or Certificate
A person who willfully and knowingly commits any of the following actions will be punished as a CLASS H FELON for insurance fraud if he or she: (a) makes a false insurance claim or presents any proof in support of a false insurance claim, (b) prepares or makes a false account, certificate, affidavit, proof of loss or other documents or writings to an insurer with the intent that it may be presented or used in support of a claim.
58-2-160 Reporting and Investigation of Insurance, Reinsurance Fraud and the Financial Condition of Licensees
A person, employee or licensee who acts without malice is not subject to civil liability for libel or slander for reporting any known or suspected fraudulent insurance or reinsurance claim, transaction or act. During the course of any investigation of known or suspected fraudulent insurance or reinsurance claims, the Commissioner may request any persons to furnish copies of any information relative to the known or suspected claim, transaction or act.
Medicare Supplement and Long-term Care insurance
A supplement to the Accident and Health or Sickness license.
58-3-30 Meaning of terms accident, accidental injury, and accidental means
Accident, accidental injury, and accidental means will be defined to imply result language and must not include words that establish an accidental means test.
58-2-50 Examinations, hearings, and investigations
All examinations, hearings, and investigations may be conducted by the Commissioner personally or by one or more deputies, investigators, actuaries, examiners or employees designated for the purpose. If the Commissioner or any investigator appointed to conduct the investigations is of the opinion that there is evidence to charge any person or persons with a criminal violation of any provision of the Insurance Code, the Commissioner may arrest with warrant or cause the person or persons to be arrested.
58-3-10 Statements in application not warranties
All statements or descriptions in any application for a policy of insurance, or in the policy itself, will be deemed representations and not warranties, and a representation, unless material or fraudulent, will not prevent a recovery on the policy.
Resident License
An individual may qualify for a license as a resident if he resides in North Carolina. Any license issued pursuant to an application claiming residency in North Carolina is void if the licensee, while holding a resident license in North Carolina, also holds or makes application for a resident license in, or thereafter claims to be a resident of any other state or ceases to be a resident of North Carolina. However, if the applicant is a resident of a county in another state, the border of which county is contiguous with the state line of North Carolina, the applicant may qualify as a resident for licensing purposes of North Carolina.
Person
An individual, partnership, firm, association, corporation, joint-stock company, trust, any similar entity or any combination of the foregoing acting in concert. The singular form includes the plural and the masculine form includes the feminine wherever appropriate.
58-1-10 Contract of Insurance
An insurance contract is a legal agreement in which the insurer is obligated to pay money, its equivalent or perform some act of value for the insured as indemnity or reimbursement for either the destruction or loss of property or the injury or death of a person in whom the insured has an insurable interest.
58-39-27 Privacy notice and disclosure requirement exceptions
An insurance institution or insurance producer may provide a joint notice from the insurance institution or insurance producer and one or more of its affiliates or other financial institutions, as defined in the notice, as long as the notice is accurate with respect to the insurance institution or insurance producer and the other institutions. An insurance institution or insurance producer may satisfy the notice requirements by providing a single notice if two or more applicants or policyholders jointly obtain or apply for an insurance product. An insurance institution or insurance producer may satisfy the notice requirements through the use of separate or combined notices.
58-33-83 Assumed Names
An insurance producer doing business under any name other than the insurance producer's legal name must notify the Commissioner before using the assumed name.
58-33-40 Appointment of Insurance Producers
An insurer cannot accept an insurance application from an individual who is not currently appointed to that insurer. An insurer must report to the Commissioner the names of all appointed insurance producers and pay the prescribed appointment fee within 15 days of the first application for insurance. Appointments must be renewed annually by APRIL 1st.
58-33-82 Commissions
An insurer cannot pay, and a person cannot accept a commission, to a person for selling or soliciting insurance in North Carolina if that person is required to be licensed but is not licensed. Renewal commissions may be paid if the person was required to be licensed at the time of sale or solicitation.
58-3-145 Solicitation, negotiation or payment of premiums on insurance policies
An insurer or Insurance producer may accept payment of an insurance premium by credit card if the insurer accepting payment by credit card meets the following conditions: 1. The insurer makes payment by credit card available to all existing and prospective insured parties and does not limit the use of credit card payments to certain persons. 2. The insurer pays the fees charged by the credit card company for the payment of premiums by credit card.
58-39-25 Notice of Insurance Information Practices
An insurer or insurance producer must provide a Notice of Insurance Information Practices to all applicants or insured parties involved with the insurance transactions during the time of application. A Notice of Insurance Information Practices may be provided during the time of delivery when the information is collected from the applicant or from public records.
58-33-56 Notification to Commissioner of Termination
An insurer who terminates the appointment with an insurance producer must notify the Commissioner within 30 DAYS after the effective date of the termination. Within 15 DAYS after notifying the Commissioner, the insurer must mail a copy of the notification to the insurance producer. Insurers must notify the Commissioner if the insurer has knowledge of the insurance producer violating any insurance laws or other regulations.
58-2-180 Making False Statements
Anyone who willfully misstates information in a financial statement required by law is guilty of perjury. The person or entity that made the misstatement is subject to a fine of between $2,000 and $10,000.
58-39-5 Purpose of Article 39
Article 39 (Insurance Information and Privacy Protection Act) establishes standards for the collection and use of information gathered by insurers, insurance producers, and insurance support organizations such as the Medical Information Bureau (MIB) and consumer reporting agencies. Article 39 is designed to help insurers with the collection of information that is necessary to underwrite a risk. Simultaneously, Article 39 protects the applicant and the insured by providing information on how insurers collect and disseminate personal information.
Casualty insurance
Coverage against legal liability, including that for death, injury, or disability or damage to real or personal property.
Accident and Health or Sickness insurance (AKA Health Insurance)
Coverage for sickness, bodily injury, or accidental death and may include benefits for disability income.
Property insurance
Coverage for the direct or consequential loss or damage to property of every kind.
Life insurance
Coverage on human lives, including benefits of endowment and annuities, and may include benefits in the event of death or dismemberment by accident and benefits for disability income. This includes Variable life and Variable Annuity products insurance coverage provided under variable life insurance contracts and variable annuities.
11 NCAC 19 .0103 COMPLAINT RECORDS
Each insurer or its insurance producers must maintain a register of every written complaint listing the NCDOI file number, the name of the insured, the nature of the complaint, the insurer's department subject to the complaint, the policy or claim number of the insured, and the final disposition of the complaint. These records must be retained for at least 5 years after the final disposition of the complaint or, for companies, until the Commissioner has adopted a final report of a general examination that contains a review of these records for that calendar year, whichever is later.
58-2-162 Embezzlement by Insurance Producers or Administrators
Embezzlement of money received is punishable as a FELONY. If the amount embezzled is $100,000 or more it is a Class C FELONY. If the amount is under $100,000 it is a Class H felony. The Commissioner may immediately suspend the license of the insurance producer and initiate prosecution because the insurance producer may be guilty of larceny. Embezzlement does not have to have taken place; however, the INTENT must be proven.
The Federal Privacy Act of 1974
Established the requirement that personal information collected by the insurance industry could not be given to any other party without the consent of the affected party.
Federal Fair Credit Reporting Act of 1971
Established the right of a consumer to know what information has been collected on him or her. The Act gave the consumer the right to challenge inaccurate information and prohibited use of materials dating back after a specified number of years.
58-33-20 Representation
Every Insurance producer who solicits or negotiates an application for insurance of any kind in any controversy between the insured or his beneficiary and the insurer is regarded as representing the insurer and not the insured or his beneficiary. Every Insurance Broker who solicits an application for insurance of any kind in any controversy between the insured or his beneficiary and the insurer issuing any policy upon such application is regarded as representing the insured or his beneficiary and not the insurer.
58-2-69 Notification of criminal convictions and changes of address
If a licensee is convicted for any crime other than a motor vehicle infraction, the licensee must notify the Commissioner within 10 DAYS after the conviction. Each licensee must inform the Commissioner of the licensee's residential address and provide a valid e-mail address. Each licensee must also give written notification to the NCDOI of any change to their residential address or e-mail address within 10 DAYS of the change. Failure to provide the information may result in the licensee having to pay a $50 administrative fee to the NCDOI.
58-33-115 Adjuster acting for unauthorized company
If any person acts as an Adjuster on a contract not authorized by the laws of North Carolina will be deemed guilty of a Class 1 Misdemeanor.
58-3-130 Insurance Producer, Adjuster, etc., acting without a license or violating insurance law
If any person assumes to act either as principal or licensee without license as required by law the person is deemed guilty of a Class 1 Misdemeanor.
58-33-120 Insurance Producer and Adjuster Acting without a License or Violating Insurance Law
If any person either acts or pretends to act as a licensee and does not have a license, which is required by law, that person is deemed guilty of a Class 1 Misdemeanor.
58-33-105 False statements in applications for insurance
If any person knowingly or willfully makes a false or fraudulent statement on any application for insurance, or makes any such statement for the purpose of obtaining any monetary benefit from any company engaged in the business of insurance in North Carolina, is guilty of a Class 1 Misdemeanor.
58-2-70 Civil Penalties/Restitution for Violations
If the Commissioner has reason to believe that a person has violated provisions of the insurance regulations and the violation subjects the person's license or certification to suspension or revocation, the Commissioner may proceed after notice and opportunity for a hearing. This includes suspension or revocation of the license and payment of a monetary penalty of $100 to $1,000. Upon petition of the Commissioner, the court may order the person who committed the violation to make restitution to the person harmed by the licensee's actions. Persons suspected of violations of NC insurance law must be given 10 days notice prior to the date of any hearing. The notice must state the reason for the hearing and the charges under investigation by the Commissioner.
58-2-155 Investigation of Charges
If the Commissioner or a citizen of the state files a complaint against an insurance company that is authorized to do business in the state, the Commissioner is authorized to investigate the matter. Upon finding the complaints against the company justified, the Commissioner, by law, may hold the company liable for payment of the cost of the investigation.
Company or insurance company or insurer
Includes any corporation, association, partnership, society, order, individual or aggregation of individuals engaging or proposing or attempting to engage as principals in any kind of insurance business, including the exchanging of reciprocal contracts between individuals, partnerships and corporations.
**NOTE**
Individuals that have a temporary license that take and fail the state insurance exam will have the license immediately revoked.
58-33-110 Insurance Producers signing certain blank policies
Insurance producers who signs any blank contract or policy of insurance is guilty of a Class 3 Misdemeanor and, upon conviction, will be punished by a fine of $1,000 to $5,000. It is legal to countersign blank transportation ticket policies of accident insurance and baggage insurance policies issued only through coin-operated machines.
58-33-75 Twisting with respect to insurance policies; penalties
Insurers may not make any statement that willfully misrepresents the terms, conditions or benefits in any policy of insurance for the purpose of inducing or attempting to induce a policyholder in any way to terminate or surrender or exchange or convert any insurance policy. The term used in connection with this illegal activity is known as twisting. If determined by the Commissioner that the licensee is guilty of twisting the penalty may be suspension or revocation of the license and a fine of up to $1,000.
58-3-115 Twisting with respect to insurance policies; penalties
Insurers may not make any statement that willfully misrepresents the terms, conditions or benefits in any policy of insurance for the purpose of inducing or attempting to induce a policyholder in any way to terminate or surrender or exchange or convert any insurance policy. The term used in connection with this illegal activity is known as twisting. If determined by the Commissioner that the licensee is guilty of twisting the penalty may be suspension or revocation of the license and a fine of up to $1,000.
**NOTE**
Insurers or insurance producers cannot offer insurance products through a credit card facility.
Consumer Reporting Agency
Is an entity that engages (in whole or in part) in the practice of assembling or preparing consumer reports for a fee. The entity also obtains information from sources other than insurance institutions and furnishes consumer reports.
Consumer Report
Is any report that provides information regarding the applicant's personal life, reputation and financial position that is used in an insurance transaction.
Pretext Interview
Is defined as an insurer or licensee misrepresenting the true purpose of an interview or refusing to identify as acting for an Insurer is an unfair trade practice. However, a pretext interview may be used in connection with an investigation of suspected criminal activity, material misrepresentation, and fraud or material nondisclosure in connection with an insurance claim.
Investigative Consumer Report
Is information that is gathered through personal interviews. (This information may not be gathered without the applicant's permission.)
58-2-163 Reporting to Commissioner
It is the duty of any person connected to the insurance business to notify the Commissioner and provide a complete statement of all relevant facts and circumstances whenever a violation of a regulation occurs. This report will be a privileged communication, and when made without malice, will not subject the person making the report to any liability. The Commissioner may suspend, revoke or refuse to renew the license of any licensee that willfully fails to comply with this regulation.
58-2-200 Books and papers required to be exhibited
It is the duty of any person having in his possession or control any books, accounts, or papers of any licensed company must exhibit the same to the Commissioner or to any deputy, actuary, accountant, or persons acting with or for the Commissioner. Any person, who refuses, on demand to exhibit the books, accounts, or papers, as above provided, or who knowingly or willfully makes any false statement in regard to the same, will be subject to suspension or revocation of his license and will be deemed guilty of a Class 1 Misdemeanor.
58-33-70 Special provisions for Adjusters and Motor Vehicle Damage Appraisers
It is unlawful and cause for revocation of license for a licensed Adjuster to engage in the practice of law. On behalf and on request of an insurer by which an insurance producer is appointed, the insurance producer may from time to time act as an adjuster and investigate and report upon claims without being licensed as an adjuster. No insurance producer may adjust any losses where the insurance producer's remuneration for the sale of insurance is in any way dependent upon the adjustment of those losses. The Commissioner may issue a learner's permit authorizing the applicant to act as an adjuster for a learning period of 90 DAYS without a requirement of any other license. Not more than one learner's permit may ever be issued to one individual.
Department
Means the Department of Insurance of North Carolina.
FINRA
Means the Financial Industry Regulatory Authority or any successor entity.
Reciprocity
NC insurance producer licensing regulations comply with the reciprocity requirements of the Federal Gramm-Leach-Bliley Act and Public Law 106-102. An individual who applies for an insurance producer license in NC who was previously licensed for the same kinds of insurance in that individual's home state will not be required to complete any prelicensing education or examination. This exemption is available only if: 1. The applicant is currently licensed in the applicant's home state; or 2. The application is received within 90 DAYS after the cancellation of the applicant's previous license and the applicant's home state issues a certification that, at the time of cancellation, the applicant was in good standing in that state; or 3. The home state's insurance producer database records, maintained by the NAIC indicate that the insurance producer is or was licensed in good standing for the kind of insurance requested.
58-3-120 Discrimination Forbidden
No company doing business of insurance, as defined in the General Statutes of North Carolina, may make any discrimination in favor of any person. Discrimination between individuals of the same class in the amount of premiums or rates charged for any policy of insurance or in the benefits payable or in any of the terms or conditions of such policy is prohibited.
58-33-76 Referral of business to repair source; prohibitions
No insurance company or any person employed by the insurer may recommend the use of a particular service or source for the repair of property damage without clearly informing the claimant that the claimant is under no obligation to use the recommended repair service. No insurance company or any person employed by the insurer may accept any gratuity or other form of remuneration from a repair service for recommending that repair service to a claimant. However, discounts agreed to by repair services will not violate the Insurance Code.
58-3-25 Discriminatory practices prohibited
No insurer may refuse to insure or refuse to continue to insure an individual, limit the amount, extent, or kind of coverage available to an individual, or charge an individual a different rate for the same coverage, solely because of blindness or partial blindness or deafness or partial deafness. No insurer may refuse to insure or refuse to continue to insure an individual; limit the amount, extent, or kind of coverage available to an individual; or charge an individual a different rate for the same coverage, because of the race, color, or national or ethnic origin of that individual.
58-3-135 Certain insurance activities by lenders with customers prohibited
No lender may require the purchase of insurance from such lender or subsidiary or affiliate of such lender as a condition to the making, renewing or refinancing of any loan or to the establishing of any of the terms or conditions of such loan.
58-33-26 General license requirements
No person may act as an Insurance Producer, Adjuster or Motor Vehicle Damage Appraiser unless duly licensed. No licensee may make application for, procure, negotiate for, or place for others, any policies for any kinds of insurance as to which that person is not then qualified and duly licensed.
58-33-80 Discrimination forbidden
No representative of an insurer doing the business of insurance may discriminate in favor of any person.
Personal Lines insurance
Property and liability insurance coverage sold to individuals and families for primarily noncommercial purposes.
58-33-60 Countersignature and Related Laws
Resident insurance producers are not required to share commissions, countersign or process an application, policy, contract or other form of insurance on behalf of a nonresident insurance producer or authorized insurer.
58-33-5 Meetings of Commission; compensation
The Commission must meet at least 4 times per year, on or about January 15, April 15, July 15, October 15 and upon call of the chairman. The members will receive no compensation for attendance at meetings, except a per diem expense reimbursement. Members of the Commission who are not officers or employees of NC will receive reimbursement for subsistence and travel expenses.
**NOTE**
The Commissioner does not set rates for insurance policies. However, the Commissioner may challenge rate increases and hold public hearings.
58-2-40 Powers & Duties of the Commissioner
The Commissioner has broad duties as the chief executive officer of the insurance department. These duties include acting as chief administrator of the NCDOI, reporting to the governor and legislature on the activities of the NCDOI, and performing any functions as described by law. The Commissioner is empowered to investigate and conduct hearings on any insurance matter in the state including conducting an oral examination and investigation of persons suspected to be involved in unfair competition or deceptive practices. If violations are suspected, the Commissioner will provide a time and place to hold hearings, administer oaths, examine records and provide such information to the person suspected of a violation. After conducting a hearing and deciding that a violation has occurred, the Commissioner may issue a Cease and Desist order to the person who committed the violation. The Commissioner may also order the arrest of persons in criminal violation of insurance laws of North Carolina and will seek prosecution through the state Attorney General.
58-2-195 Commissioner may require records, reports, etc., for Agencies, Insurance Producers and others
The Commissioner is empowered to make and promulgate reasonable rules and regulations governing the recording and reporting of insurance business transactions by insurance agencies or insurance producers of record are licensed in North Carolina or are transacting insurance business in North Carolina to the end that such records and reports will accurately and separately reflect the insurance business transactions of such agency or insurance producer of record in North Carolina. Information from records required to be kept must be furnished the Commissioner on demand and the original records required to be kept pursuant to the provisions of this section must be open to the inspection for the Commissioner or any other authorized employee of the NCDOI when demanded.
58-33-132 Qualifications of CE instructors
The Commissioner may adopt rules to establish qualifications for and issuance, renewal, summary suspension, and termination of provider, presenter, and instructor authority for prelicensing and continuing insurance education courses. During any suspension, the instructor may not engage in any instruction of prelicensing or continuing insurance education courses prior to an administrative review.
58-33-130 Continuing Education (CE) program for licensees
The Commissioner may adopt rules to provide for a program of continuing education requirements for the purpose of enhancing the professional competence and professional responsibility of Adjusters and Motor Vehicle Damage Appraisers.
58-33-66 Temporary Licensing
The Commissioner may issue a temporary insurance producer license for a period of 180 DAYS or longer for good cause without requiring examination. If the Commissioner deems that the temporary license is necessary for the servicing of an insurance business due to death, disability or military service of the licensee of record. The temporary license may be issued to anyone that the Commissioner deems as a responsible party including the spouse, adult siblings and personal representative of the deceased insurance producer. An individual requesting a temporary license can be licensed to represent those insurance companies that appointed the insurance producer at the time of death or commencement of a disability.
58-33-17 Limited Lines license for rental car companies
The Commissioner may issue to a rental car company, or to a franchisee of a rental car company, that has complied with the requirements of this section, a limited license authorizing the licensee, known as a Limited Lines licensee for the purpose of Article 33, to act as insurance producer, with reference to the kinds of insurance specified in this section, of any insurer authorized to write such kinds of insurance in North Carolina.
Commissioner
The Commissioner of Insurance of North Carolina or an authorized designee of the Commissioner.
58-33-135 Continuing Education Advisory committee
The Commissioner will appoint one advisory committee for fire and casualty insurance licensees and one advisory committee for life and health insurance licensees. The advisory committees may recommend reasonable rules to the Commissioner. The Commissioner may adopt, reject, or modify such recommendations.
58-33-50 Notices; loss of residency; duplicate licenses
The Commissioner will notify every appointing insurer about any suspension, revocation, or nonrenewal of a license by the Commissioner and about any surrender of a license by a licensee, whether by consent order or otherwise. Upon suspension, revocation, nonrenewal, surrender, or reinstatement of any license, the Commissioner must notify the Central Office of the NAIC. Any licensee who ceases to maintain his or her residency in NC must deliver his insurance license or licenses to the Commissioner by personal delivery or by mail within 30 DAYS after terminating residency. The Commissioner may issue a duplicate license for any lost, stolen, or destroyed license issued pursuant to this Article upon a written request from the licensee and payment of appropriate fees.
**NOTE**
The Commissioner will notify every appointing insurer of any action taken against a licensee. The Commissioner will also notify the National Association of Insurance Commissioners (NAIC).
Home state
The District of Columbia and any state or territory of the United States in which an insurance producer maintains his or her principal place of residence or principal place of business and is licensed to act as an insurance producer.
**NOTE**
The NCDOI must examine the records of each Domestic Insurer at least once every 5 years.
NAIC
The National Association of Insurance Commissioners.
58-2-5 Election of Commissioner
The North Carolina Commissioner of Insurance, referred to in the text as the Commissioner, is elected to a 4 year term during each general election. There is no limit on the number of terms the Commissioner may seek office. If the Commissioner cannot fulfill the duties of the office, the North Carolina governor will appoint a replacement until the next election.
58-3-15 Additional or coinsurance clause
The coinsurance clause or provision may be written in or attached to a policy or policies issued when there is printed or stamped on the declarations page of the policy or on the form containing the clause the words coinsurance contract, and the Commissioner may, in the Commissioner's discretion, determine the location of the words coinsurance contract and the size of the type to be used. If there is a difference in the rate for the insurance with and without the coinsurance clause, the rates for each must be furnished the insured upon request.
58-39-10 Scope
The obligations imposed by Article 39 applies to those insurers, insurance producers, or ISO that in the case of life, health, or disability insurance that collect, receive, or maintain information in connection with insurance transactions that pertains to natural persons who are residents of North Carolina or engage in insurance transactions with applicants, individuals, or policyholders who are residents of North Carolina.
58-2-185 Records of Business Kept by Companies and Insurance Producers - Commissioner May Inspect
The original records and information from these records must be furnished for the Commissioner to examine. The refusal to submit to examination is grounds for the revocation or refusal of a license. A license may be suspended for a period of one to 6 MONTHS for a first offense and 1 YEAR for any further offenses.
Purpose of Regulating the Insurance Industry
The purpose of the North Carolina's regulation of the insurance industry is to promote the welfare of the general public and protect its interests in the ability to purchase coverage for insurable risks. The North Carolina Department of Insurance (NCDOI) was created by the state legislature to administer and carry out the laws and statutes regarding insurance.
58-33-1 Scope
This Article governs the qualifications and procedures for the licensing of Insurance Producers, Adjusters and Motor Vehicle Damage Appraisers. A person may not sell, solicit or negotiate insurance in North Carolina unless the person is duly licensed.
58-3-40 Proof of loss forms required to be furnished
When an insurer requires a written proof of loss, the proof of loss form must be furnished by the insurer to the insured within 15 days after the receipt from the insured having given notice of a pending claim. If the proof of loss form is not provided, the insured may submit the proof of loss in writing on his or her paper.
58-2-60 Restraining Orders and Criminal Convictions
Whenever it appears to the Commissioner that an individual has violated or threatens to violate any insurance law, the Commissioner may apply to the appropriate court for a restraining order and injunction. A conviction or a plea of Nolo Contendre (no contest) for any criminal violation of these statutes automatically suspends that person's license until the Commissioner reinstates the license.
58-2-65 License Surrender
With the consent of the Commissioner, any licensee who is accused of any omission, misconduct or an act that would subject the licensee to suspension or revocation may surrender his or her license for a period of time established by the Commissioner.
Nonresident License
a. An individual may qualify for a license under this Article as a nonresident if he holds a like license in another state or territory of the United States. An individual may qualify for a license as a nonresident adjuster if the applicant's state of residency does not offer such licenses and such applicant meets all other requirements for licensure of a resident. A license issued to a nonresident of North Carolina must grant the same rights and privileges afforded a resident licensee. b. A nonresident of North Carolina may be licensed without taking an otherwise required written examination if the insurance regulator of the state of the applicant's residence certifies that the applicant has passed a similar written examination or has been a continuous holder, prior to the time such written examination was required, of a license like the license being applied for in North Carolina.