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