North Carolina Insurance Laws and Rules

A group health policy's approved premium rate is guaranteed by the insurer for an initial period of at least __ months.

12

What is the minimum age for an individual to be a licensed North Carolina insurance agent?

18 years old

Insurance agents license must be renewed every

2 years

A person insured under a health policy is required to give the insurance company a Notice of Claim within how many days after a covered loss?

20 days

If a health insurance claim is not promptly paid, legal action may be taken against the insurer after

60 days

Agent

A individual who in any manner sells, solicits, or negotiates insurance on behalf of the company.

Broker

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

According to the Affordable Care Act (ACA), which of the following coverage's is not required?

Coverage for cosmetic surgery

How is the Life and Health Insurance Guaranty Association funded?

From member companies

Which of the following must be included with the continuation of coverage of a group Hospital, Surgical, or Major Medical Plan?

Hospital Expenses

When can a lender require someone to purchase insurance from them as part of the condition to approve their loan?

Never

K works for XYZ Clothing Store from September through December each year. K works 45 hours a week for this period of time. The employer's Group Policy would consider K

Not eligible for insurance because as a seasonal employee K does not meet the definition of "employee" under North Carolina Law

Continuing Education

Resident agents are required to complete 24 hours of CE every 2 years to keep their license active. 3 of those hours must be in ethics.

Examination of Records

The Commissioner can examine anyone in the business of insurance in the state at anytime. The Department will review insurance companies for financial stability at least once every 5 years. An investigation may be prompted on an individual producer if 3 complaints are received on them within a 30 day period.

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.

Notice of 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.

Fingerprinting

The Commissioner requires fingerprinting to be done within 30 days of of applying for a resident license.

Who does the insurance broker in North Carolina represent?

The insured

The Life and Health Insurance Guaranty Association is funded by authorized insurers in this State. One of the roles of this organization is to

assist in the prevention of insurer insolvencies.

The circulation of written literature that is maliciously critical of an insurer's financial condition is called

defamation.

If a blank insurance contract is signed by an agent, the agent

is guilty of a misdemeanor.

An applicant may NOT be refused insurance coverage due to

race

If an agent is found to be incompetent, untrustworthy, or financially irresponsible, the Commissioner may

suspend, revoke, or refuse a new agents license.

A health insurance policy applicant unintentionally fails to list a previous visit to a neurologist. If the policy is issued and the insurer later decides to contest the policy it must do so within

within 2 years of the date of issue

An agent's license can be suspended or revoked by

writing primarily controlled business

Commissioner of Insurance

The commissioner enforces all laws of the state governing insurance companies companies and makes rules and regulations relating to the business of insurance. The Commissioner is elected to office and stays in that position for 4 years.