Regulations for Personal Lines
Any person who willfully violates a Cease and Desist Order of the Commissioner after it has become final and while such order is in effect will forfeit and pay a fine for the use of PUBLIC SCHOOLS of the violation a sum of $_____to$_____.
$1,000 to $5,000
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 $______ to $_____.
$1,000 to $5,000
A Broker must purchase a Surety Bond for no less than $______ per line of authority.
$15,000
At-Fault Minor Accidents are those resulting in property damage of $__or less.
$1850
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 $_____and $_____.
$2,000 and $10,000
At-Fault Major Accidents are those resulting in bodily injury or death and/or property damage of $_____ or more
$3,085
At-Fault Intermediate Accidents are those resulting in property damage of more than $____ but less than $___
-$1,850 but less than $3,085
Any person who violates a Cease and Desist Order issued by the Commissioner is subject to a fine of $______ for each violation with a maximum of $_______.Also, the violator's license may be suspended or revoked by the Commissioner.
-$10,000 -$50,000
A license may be suspended for a period of ___to___ months for a first offense and ____ year for any further offenses.
-1 to 6 Months -1 Year
Each licensee must also give written notification to the NCDOI of any change to their residential address or e-mail address within______ days of the change. Failure to provide the information may result in the licensee having to pay a $____ administrative fee to the NCDOI.
-10 Days -$50.00
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 ______ days of the first application for insurance. Appointments must be renewed annually by _______.
-15 days -April 1st
A licensee may request a ____ day extension of his or her normal compliance period from the NCDOI by completing the appropriate request form and paying a $___ fee. Requests must be made no sooner than _____ days before the end of their compliance period and no later than the last day of their compliance period
-30 days -$75.00
A Class 1 Misdemeanor has a penalty of $1,000 - $5,000 and/or an imprisonment for _____days but no more than ___ year.
-30 days -1 year
An insurer may terminate a deviation only if the deviation has been in effect for a period of ___ months before the effective date of the termination and the insurer notifies the Commissioner of the termination no later than ____ days before the effective date of the termination.
-6 Months -15 days
Embezzlement of money received is punishable as a FELONY. If the amount embezzled is $100,000 or more it is a Class __ felony. If the amount is under $100,000 it is a Class ___ felony. The
-Class C -Class H
Persons suspected of violations of North Carolina insurance law must be given _____ 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.
10 Days
If a licensee is convicted for any crime other than a motor vehicle infraction, the licensee must notify the Commissioner within _____ days after the conviction.
10 days
The Disclosure Authorization Form will remain valid from the date signed for ____ months for Property or Casualty Insurance applications.
12 months
The licensee may, within ___days after the end of his or her compliance period, complete the CE requirements and request a reinstatement of the license and pay a $_____reinstatement fee to have his or her license reinstated.
120 days -$75.00
When an insurer requires a written proof of loss, the proof of loss form must be furnished by the insurer to the insured within _____ days after the receipt from the insured having given notice of a pending claim.
15 days
The Commissioner may issue a temporary insurance producer license for a period of ____ days or longer for good cause without requiring examination.
180 days
Property Damage" means damage or loss to a rented vehicle in excess of two hundred fifty dollars ($250.00), including loss of use and any costs or expenses incident to the damage or loss, for which the renter is legally obligated to pay; and "rented" means rented on a daily rate basis for a period of ___ consecutive days or less.
21 consecutive days
Each rate or loss costs filing must become effective on the date specified in the filing, but not earlier than ___ days from the date the filing is received by the Commissioner
210 days
All licensees are required to complete _________ hours of NCDOI approved CE every ___ years
24 hours and 2 years
All Property, Casualty, Personal Lines or Adjuster licensees must complete a minimum ____hour "Flood" course approved by the NCDOI in EVERY OTHER compliance period.
3 hour
every resident licensee must complete a minimum ____ hour "Ethics" course approved by the NCDOI in EACH compliance period.
3 hour
Premium surcharges based on driving records are applied to policies for ___ years. A surcharge will be applied to individuals who have less than ___ years driving experience.
3 years
Within ___________ business days from the date when the written request was received from an individual to correct recorded personal information, the insurer must (a) correct, amend or delete the recorded personal information in dispute; or (b) notify the individual of the refusal to make the requested changes.
30 business days
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 ______ days after the final disposition of the matter. Within ________ days after the initial pretrial hearing date, a licensee must report to the Commissioner any criminal prosecution taken in any state.
30 days
Any licensee who ceases to maintain his or her residency in North Carolina must deliver his insurance license or licenses to the Commissioner by personal delivery or by mail within _____ days after terminating residency.
30 days
The Commission must meet at least ____times per year.
4 times
The North Carolina Commissioner of Insurance, referred to in the text as the Commissioner, is elected to a _______ year term during each general election. There is no limit on the number of terms the Commissioner may seek office.
4 years
Complaint Records: These records must be retained for at least ____ years after the final disposition of the complaint.
5 years
Licensees must maintain records of all CE credits earned for a period of ___ years after obtaining the credits.
5 years
The NCDOI must examine the records of each Domestic Insurer at least once every ___ years.
5 years
The Commissioner may give notice to the NCRB within ____ days of the filing that the proposed rates are not within the regulations of North Carolina
50 days
No licensed insurance producer of an insurer authorized to solicit and accept premiums for motor vehicle insurance for the company he represents may refuse on behalf of said company to accept any application from an eligible risk for such insurance and to immediately bind the coverage applied for and for a period of not less than ___ months.
6 Months
No insurance company or insurance producer may knowingly issue any fire insurance policy on property in North Carolina for an amount which, together with any existing insurance, exceeds the fair value of the property and not for a term exceeding ____ years.
7 Years
No policy form applying to insurance on risks or operations covered by the Rate Bureau may be delivered or issued for delivery unless it has been filed with the Commissioner by the Rate Bureau and either he has approved it, or _____ days have elapsed and it has not disapproved.
90 days
The Commissioner may issue a learner's permit authorizing the applicant to act as an adjuster for a learning period of _____days without a requirement of any other license. Not more than one learner's permit may ever be issued to one individual.
90 days
Within ___________ days of the notice date from the insurer of an adverse underwriting decision, the applicant may request the insurer furnish within _____ business days the specific reason for the adverse decision if not initially furnished in writing and specific items of personal and privileged information that support those reasons.
90 days 21 business days
Any person who obtains information about an individual from an insurer, insurance producer or ISO under false pretenses will, upon conviction, be guilty of a _______.
Class 1 Misdemeanor
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
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.
A person who attempts to obtain anything of value from another by false pretenses with intent to cheat, embezzle or defraud is guilty of ________
Class H felony
Can insurers or insurance producers offer insurance products through a credit card facility?
No they can not
An insurer or insurance producer must provide a "_______________" to all applicants or insured parties involved with the insurance transactions during the time of application.
Notice of Insurance Information Practices
Motor Vehicle insurance placed through the Facility is classified as what type of risk?
Substandard Risk
A licensed insurance producer who is unable to comply with CE requirements due to military service or long-term medical disability may request a WAIVER for CE requirements. A long-term medical disability must be certified on an ANNUAL basis by an attending physician to the licensee. True Or False.
True
An "At-Fault Minor Accident" involving property damage ONLY receives no surcharge as long as no licensed operator in the household has any other chargeable accidents or convictions for moving traffic violations during the experience period. You may have heard of this being referred to as "accident forgiveness." True or False
True
CE is due by the LAST DAY of the MONTH OF THE LICENSEE' BIRTHDAY in each compliance period. True or False
True
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. True or False.
True
No licensee may solicit a power-of-attorney from a consumer that authorizes the licensee to sign insurance-related forms. True or False
True
The NCIUA will have the power on behalf of its members: (1) To cause to be issued policies of insurance to applicants. (2) To assume reinsurance from its members. (3) To cede reinsurance to its members and to purchase reinsurance in behalf of its members. True or False.
True
The North Carolina Motor Vehicle Reinsurance Facility (AKA, "The Facility") was created to provide auto insurance for individuals who would not be able to obtain coverage through the standard market. This is referred to as an "involuntary market" since insurers would ordinarily reject the applicant due to the applicants driving record. True or False
True
What did the Federal Privacy Act establish?
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.
What did the Federal Fair Credit Reporting Act of 1971 Establish?
established the right of a consumer to know what information has been collected on him or her.
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 whom?
the insured or his beneficiary and not the insurer.
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 whom?
the insurer and not the insured or his beneficiary.
The commissioner is empowered to investigate what?
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.