State Regulations Flashcards
In-Depth Review (55 cards)
Notice of Conviction and/or change of address
Time frame to report change of address, administrative actions, or criminal convictions to commissioner
10 days
Civil penalties for violating North Carolina Insurance Code
$100 minimum per day, $1000 maximum per day; violations may result in suspension, revocation, monetary penalty, and restitution
An insurer should file a notice of appointment within ___ days after the first application is submitted.
15 days
An insurer must file written notice of termination with commissioner within ___ days.
30 days
Insurers must mail copy of termination to producer within ___ days after notifying the Commissioner.
15 days
Nonresident producer must obtain a resident license within ____ days of moving to North Carolina.
90 days
Maximum amount of time the Commissioner may issue a temporary license.
180 days
Penalties for violating Unfair Claims Practice or Unfair Method of Competition
$1000 - $5000, for each willful unfair practice violation
Maximum liability for Life and Health Insurance Guaranty Association are
$300,000 for all life or health benefits including cash values/ $500,000 for basic medical, hospital, or surgical expense policies
Insurance Information and Privacy Protection Act states that if an individual request access to personal information obtained by an insurer, it must be provided within _____ business days of the request.
30 business days
In accordance with the Insurance Information and Privacy Protection Act, an insurer must act within ____ business days if individual request correction, amendment, or deletion of information.
30 business days
Fill in the blank
Anyone who adjusts a claim on an illegal policy or one issued by an unauthorized insurer can be found guilty of a _.
Class 1 misdemeanor
A producer may accept discounts from a repair service company for customer referrals or recommendations,
so long as the policyowners were advised that they are not obligated to use any recommended repair service.
Any producer who unknowingly solicits, negotiates, or sells insurance for an unauthorized insurer is
guilty of Class 1 misdemeanor
Class H Felony
violation for intentionally representing an unauthorized insurer
Penalties for signing a blank policy
misdemeanor, $1000-$5000 fine
Producers may indirectly accept a commission or fee for business brokered through an unlicensed agent. True or false?
FALSE - Producers may ONLY accept commissions or fees from other licensed and appointed agents (producers).
Any agent, broker or administrator that embezzles more than $100k is guilty of a
Class C felony. If less than $100k it will be a class h felony.
Commissioner investigations
True or False: If a violation is found, the company, in addition to any other penalties allowed, is liable for the expenses of the investigation.
True
Complaint Records Retention
Complaint logs
Retained for 5 years and must provide;
* nature of complaint
* policy or claim number
* disposition of complaint
Unfair Discrimination
Insurers may not unfairly discriminate on the basis of:
-blindness or partial blindness
-deafness or partial deafness
-race, color, national/ethnic origin
Lender Insurance Requirements
Lenders MAY NOT require the purchase of insurance from them or an affiliate or subsidiary of the lender as a condition for making, refinancing, renewing, or setting terms of a loan.
Lender Insurance Requirements
Fill in the blank: Real estate lenders for one-to four-family homes must accept as evidence of insurance a ____________
temporary written insurance contract or binder
What requirements must be met for an insurer to accept payment of an insurance premium by credit or debit card?
-the insurer does not unfairly discriminate; and
-the insurer pays the fees charged by the credit or debit card company
