NC Life Insurance Regulations

Question 1

Department

Answer 1

Department of insurance of North Carolina

Question 2

Commissioner

Answer 2

Commissioner of insurance of North Carolina

Elected to office, 4 year term. If vacant, governor fills in until next election.

Question 3

NAIC

Answer 3

National association of insurance commissioners

Question 4

Person

Answer 4

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

Question 5

Location of incorporation

Answer 5

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

Question 6

Domestic insurer

Answer 6

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

Foreign: company incorporated in another state or territorial possession. Alien: insurer that is incorporated outside of the United States.

Question 7

Commissioner power and duties

Answer 7

Enforcing and carrying out of general statutes, adopting rules to enforce them, approving forms, examining financial reports, and reporting violations of insurance laws.

Question 8

Class H felony

Answer 8

Any person with intent to injure, defraud, or deceive an insurer presents a false statement in support of a claim is guilty of class h felony.

Question 9

Class C felony

Answer 9

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

Question 10

Class I felony

Answer 10

Anyone who willfully misstates information.

Question 11

Addition coinsurance clause

Answer 11

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

Question 12

Limited line credit insurance

Answer 12

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

Question 13

Limited lines insurance

Answer 13

Motor vehicle damage insurance, title insurance.

Question 14

Resident

Answer 14

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

Question 15

Commissioners term in office

Answer 15

4 years.

Question 16

Insurers and agents must maintain a log of complaints

Answer 16

5 years.

Question 17

To apply for a hearing

Answer 17

30 days.

Question 18

Age to apply for license

Answer 18

18 years.

Question 19

Required pre licensing education for agent’s license

Answer 19

20 hours.

Question 20

Required pre licensing for Medicare

Answer 20

10 hours.

Question 21

Term of temporary license

Answer 21

180 days.

Question 22

To submit appointment notification to the commissioner

Answer 22

30 days.

Question 23

For insurer to notify the commissioner of the agent appointment termination

Answer 23

30 days.

Question 24

For insurer to notify agent of appointment termination

Answer 24

15 days.

Question 25

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

Answer 25

15 days.

Question 26

To supply access to recorded personal information, after written request

Answer 26

30 days.

Question 27

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

Answer 27

10 days.

Question 28

For a licensee to notify the commissioner of any criminal convictions

Answer 28

10 days.

Question 29

CE requirements for all licenses

Answer 29

24 hours every two years depending on birth year.

Question 30

Ethics CE requirement

Answer 30

3 hours every compliant period.

Question 31

Flood insurance CE requirement for property, personal lines and adjusters

Answer 31

3 hours every other compliance period.

Question 32

Initial fine for violating insurance code

Answer 32

$100-$1000.

Question 33

Fine for willfully violating a cease and desist order

Answer 33

$1000-$5000 per count.

Question 34

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

Answer 34

$10,000-50,000.

Question 35

Broker’s bond

Answer 35

$15,000.

Question 36

Fine for willfully making false statements

Answer 36

$2,000-10,000.

Question 37

License registration fee

Answer 37

$50.

Question 38

Fine for soliciting membership in an unlawful fraternal benefit society

Answer 38

$1000-5,000.

Question 39

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

Answer 39

$300,000.

Question 40

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

Answer 40

$5,000,000.

Question 41

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

Answer 41

$50.

Question 42

Freedom of proceeds from creditor claims

Answer 42

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

Question 43

Rights of minors

Answer 43

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

Question 44

Fraternal benefit society

Answer 44

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