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Flashcards in North Carolina Regulations For Life Deck (44):
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Commissioner

Commissioner of insurance of North Carolina
Elected to office, 4 year term
If vacant, governor fills in until next election

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Department

Department of insurance of North Carolina

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NAIC

National association of insurance commissioners

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Person

Individual, partnership, firm, association, corporation, joint-stock company or any similar entity.

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Location of incorporation

Regardless of where an insurance company is incorporated, it must obtain a certificate of authority before transacting any business within the state.

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Domestic insurer
Foreign insurer
Alien insurer

Domestic : insurance company is incorporated within same state it conducts business

Foreign : company incorporated in another sate or territorial possession

Alien : insurer that is incorporated outside of the United States

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Commissioner power and duties

Enforcing and carrying out of general statutes
Adopting rules to enforce them
Rules pertaining to solicitation of proxies,
Approving forms
Examines financial reports
Reports to attorney general any violations of insurance laws
Instituting any criminal or civil actions by attorney general
When requested by citizens providing a synopsis of any insurance contract
List of rates, deviations, explanations provided by insurers

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Class H felony

Any person with intent to injure, defraud, or deceive an insurer presents a written or oral statement as part of or in support of or in opposition to a claim for payment knowing that its false or misleading is guilty of class h felony as well as any person who assists in the conspiracy.

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Class c felony

Any agent, broker or administrator that embezzles more than 100k. If less than 100k it will be a class h felony

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Class I felony

Anyone who willfully misstates information

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Addition coinsurance clause

No insurer can issue a contract of property insurance requiring the insured to take out insurance larger than that expressed in policy.

No insurer can require the insured to be liable as a coinsurer with the company issuing the policy. If there is a coinsurance contract it must be clearly stated coinsurance contract

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Limited line credit insurance

Any type of credit insurance, mortgage life, mortgage guaranty mortgage disability, automotive dealer gap insurance,

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Limited lines insurance

Motor vehicle damage insurance, title insurance,

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Resident

Person who lives in NC or any county outside the state that borders NC

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Commissioners term in office

4 years

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Insurers and agents must maintain a log of complaints

5 years

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To apply for a hearing

30 days

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Age to apply for license

18 years

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Required pre licensing education for agent's license

20 hours

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Required pre licensing for Medicare

10 hours

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Term of temporary license

180 days

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To submit appointment notification to the commissioner

30 days

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For insurer to notify the commissioner of the agent appointment termination

30 days

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For insurer to notify agent of appointment termination

15 days

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For insurer to supply proof of loss forms after receiving notice of loss

15 days

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To supply access to recorded personal information, after written request

30 days

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For a licensee to notify the commissioner of any change of address or e-mail address

10 days

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For a licensee to notify the commissioner of any criminal convictions

10 days

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CE requirements for all licenses

24 hours every two years depending on birth year

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Ethics CE requirement

3 hours every compliant period

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Flood insurance CE requirement for property, personal lines and adjusters

3 hours every other compliance period

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Initial fine for violating insurance code

$100-$1000

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Fine for willfully violating a cease and desist order

$1000-$5000 per count

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Fine for violating insurance code following the issuance of a cease and desist order

$10,000-50,000

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Broker's bond

$15,000

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Fine for willfully making false statements

2,000-10,000

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License registration fee

$50

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Fine for soliciting membership in an unlawful fraternal benefit society

$1000-5,000

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The maximum amount of the association's liability to 1 individual

$300,000

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The maximum amount of the association's liability to 1 contract holder covered by an unallocated annuity

5,000,000

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Administrative fee for failing to notify the commissioner of change in residence or e-mail address within 10 business days

$50

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Freedom of proceeds from creditor claims

Lawful beneficiary of an insurance policy is entitled to its proceeds against the creditors and representatives of the policyholder.

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Rights of minors

All minors age 15 and older may make contracts of insurance or annuity with any life insurance company.

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Fraternal benefit society

Life or health insurance company formed to provide insurance for members of an affiliated fraternal org.