NC States & Regulations
person willfully violates a cease and desist (consumer info privary), fine of
$10,000
commissioner order payment of a monetary penalty, amount is
$100-$1000
person willfully violates a cease and desist (unfair trade practices), fine of
$1000-$5000
fee is licensee fails to notify commissioner off address/email change
$50
fee paid to commissioner for additional insurance licensing
$50
claim reports specify
1. inception 2. handling 3. disposition of each claim
if a broker's license is terminated, the commissioner must notify the surety within
10 business days
a notice must be provided _____ prior to a hearing (provided by commissioner)
10 days
resident applicants for medicare supplement and long-term care insurance complete ____ of instruction
10 hours
individuals applying for single-line license complete ____ of prelicensing education
20 hours
each person who holds an insurance license in this state must complete _____ of continuing education every _____
24 hours 2 years
_____ of continuing education hours must be completed in the subject of _______
3 hours ethics
applicants have how many days to appeal the commissioner for a hearing if denied license again
30 days
applicants have how many days to appeal the commissioner for a review if denied license
30 days
prior written notice required for a bond to be terminated
30 days
an aggrieved party may request a review within
30 days of an order
term of office for commissioner lasts
4 years
NAIC
National Association of Insurance Commissioners
agents who hold ______ must complete 3 credit hours of an approved Flood course every other compliance period
adjusters property personal lines
producers include
agent broker limited representative
restricted license renewed
annually
when it appears to the commissioner that a person has violated, is violating, or threatens to violate any provision of the general statues, they may
apply to superior court of any country for restraining order and injunction to restrain violation
prior to _____ the insurer must pay the agent renewal appointment fee to commissioner
april 1 of each year
resident insurance agent license requirements
at least 18 not committed act ground for probation, suspension, nonrenewal, revocation satisfied educational requirements paid app fees passed exams
insurers and agents must maintain all written complaints for
at least 5 years
licensees must maintain a record of completed CE hours for
at least 5 years
claim reports must be maintained for
at least 5 years after settled OR until commissioner has adopted the report of general exam that contains a review of those records, whichever is later
records must be maintained for
at least 5 years after termination of the transaction with an insured
solicit
attempting to sell insurance or asking or urging a person to apply for a particular kind of insurance from a particular company
if the prevailing party can demonstrate that the defendant has engaged in a pattern of violations, the court may
award 3x monetary damages
if a company refuses or neglects to pay for an exam done on them as a result of a complaint - the commissioner is authorized to
bring a civil action for collection of expenses
terminate
cancellation of relationship between agent and insurer OR of agent's authority to transact insurance
commissioner of insurance
chief officer of the insurance department
person who assumes to act as principal, agent, or broker, or pretends to be licensed and engages in insurance transaction = guilty of
class 1 misdemeanor
refusal to provide records results in
class 1 misdemeanor
unlawful solicitation, negotiation, or transaction of insurance with an unauthorized insurance company in NC & individual did NOT know is a
class 1 misdemeanor
any person assists or conspires with another to knowingly defraud or deceive insurer is guilty of
class H felony
person with intent to injure, defraud, or deceive presents a statement regarding a claim and contains false or misleading info - guilty of
class H felony
unlawful solicitation, negotiation, or transaction of insurance with an unauthorized insurance company in NC & individual DID know is a
class H felony
after a hearing, commissioner determiners a person violated a statue or regulation, then
commissioner issues cease and desist and imposes penalties
if commissioner or investigator finds evidence to charge individual with criminal violation of insurance law, then
commissioner may arrest that person with warrant or have them arrested
if a commissioner justifies a complaint against a company, who pays
company
personal effects insurance (rental)
coverage for loss of, damage to, personal effects that occurs during rental
limited rep can qualify for one or more licenses without examination - these are
dental services limited line credit ins limited line ins motor club prearrangement ins travel accident and baggage vehicle service agreements and mechanical breakdown ins
written complaints contain
department file number name insured nature of complaint dept subject to complaint policy/claim number of insured disposition of complaint
nonresident licensees who meet CE requirements in their home state do OR do not meet the CE requirements of this state
do
each person with an even numbered birth year must meet CE requirements in
even number compliance year
responsible for charges incurred during examination
examinee
any person not registered who is required to secure a license, upon application, pay the commissioner
fee of $50
in order to receive a broker's license, the applicant must
file a bond with commissioner for at least $15,000 OR deposit with commissioner the equal amount in cash or certificate of deposits
term of office for commissioner starts
first day of January
duplicate license
for lost, stolen, destroyed license issued once the licensee submits written request + fees
restricted license
foreign military sales agent representing life insurance company in NC (provides in foreign territory or military installation)
if vacancy occurs during commissioners term,
governor appoints replacement commissioner for the unexpired term
nonresident producer
individual who is domiciled and licensed as a resident producer in a state other than NC
adjuster
individual who, for salary, fee, or commission, investigates or reports to his principal relative to claims arising under insurance contracts other than life or annuity
assumed name
insurance producer conducts business under any name other than their legal name must notify commissioner BEFORE using name
broker represents
insured
an agent represents
insurer
commissioner finds insurer's violation actively harmful then
issue an emergency cease and desist order prior to hearing
a person is convicted of a criminal violation of general states
license automatically suspended until reinstated by commissioner
second offense failure to maintain records may result in
license suspension or revocation for no less than 1 mo. and no more than 1 year
first offense failure to maintain records may result in
license suspension or revocation for no less than 1 mo. and no more than 6 mo.
failure to comply with CE requirement may cause
license to lapse
may receive a nonresident producer license if:
licensed as resident & in good standing in home state submitted request for licensure and paid app fees submitted app that was summitted to home state lives in home state that awards insurance producer licenses to residents of this state on same basis (reciprocity)
agent or broker can be licensed for what lines
life accident and health or sickness variable life and variable annuity Medicare supplement and long term care property casualty personal lines limited line insurance
commissioner can issue temporary license for
max 180 days
if a nonresident licensee doesn't have home state CE requirements, they must
meet requirements for this staet
licensed insurance providers that may request a waiver for CE requirements
military service long-term medical disability
is a sole proprietorship a business entity?
no
is there a max number of carryover hours for CE?
no
commissioner must examine every domestic insurer at least
once every 5 years
limited lines agent
person authorized by commissioner to sell, solicit, or negotiate limited lines insurance
agent
person licenses to solicit applications for, or to negotiate a policy of, insurance
resident
person living in NC or bordering county
producer
person required to be licensed to sell, solicit, or negotiate insurance
broker
person, licensed agent, procures insurance for a party other than himself through a duly authorized agent of an insurer that is licensed to do business in NC but for which broker is not authorized to act as agent
excess liability insurance (rental)
provides coverage in excess of standard liability limits provided by rental car company in its agreement, for liability arising from negligent operation
limited lines for rental can be issued if
rental < 30 consecutive dates provide written materials to prospective renter evidence of coverage provided to renter
when commissioner finds a violation
reports to NC attorney general
commissioner can give temporary license without exam if
spouse/surviving spouse/guardian who dies or becomes ill member or employee when one dies designee of licensed agent entering forces other circumstance commissioner deems will best serve public
any order issued by the commissioner is subject to review in the
superior court of wake county, unless waived by aggrieved party
reciprocity does not apply to
surplus lines licensees
licensee fails to notify commissioner of violations or insolvency, results in
suspension, revocation, or refusal to renew
uniform application
the current version of the NAIC Uniform Application for resident and nonresident agent licensing
licensees are required to completed CE by
the last day of the licensee's birth month in the compliance year
commissioner may (for good cause) grant an extension for CE requirement fo
the licensee to comply OR charge $75 fee, or both
the commissioner is elected by
the people
if a licensee is found guilty of any violation of any provision of the general statues, the commissioner may require
them to pass a written exam
purpose of examination of insurers books and records
to ensure companies remain solvent and conduct business in compliance with state laws and regulations
duty of licensed person to notify commissioner of
violations of general statutes insurer insolvency & provide facts and circumstances
if a licensee changes their address or email, they must notify commissioner
within 10 days of moving
if the insurer finds additional information to report to commissioner regarding a terminated employee - the insurer must send a notification of such to the agent when?
within 15 days
when an insurer appoints a new agent, the insurer must file a notice of appointment with the commissioner when
within 15 days after the date the first insurance application is submitted
person responsible for notifying commissioner (of bankruptcy, insolvency, receivership) must provide notice
within 3 business days after the commencement of proceeding or making assignment
after the agent receives the additional notification, they can file written comments regarding such with the commissioner when?
within 30 days
if insurer terminates the licensee's appointment, employment, or contract, agent must notify the commisioner
within 30 days
licensee who decides to terminate their residency in this state must deliver the insurance license to the commissioner personally or by mail
within 30 days after terminating residency
an agent can apply for adjuster's license without taking exam if they apply when
within 60 days of surrendering their license
can licensees apply extra hours of CE to their next compliance period?
yes