NC Life Insurance Regulations Flashcards
Department
Department of insurance of North Carolina
Commissioner
Commissioner of insurance of North Carolina
Elected to office, 4 year term. If vacant, governor fills in until next election.
NAIC
National association of insurance commissioners
Person
Individual, partnership, firm, association, corporation, joint-stock company or any similar entity.
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.
Domestic insurer
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.
Commissioner power and duties
Enforcing and carrying out of general statutes, adopting rules to enforce them, approving forms, examining financial reports, and reporting violations of insurance laws.
Class H felony
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.
Class C felony
Any agent, broker or administrator that embezzles more than 100k. If less than 100k it will be a class h felony.
Class I felony
Anyone who willfully misstates information.
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.
Limited line credit insurance
Any type of credit insurance, mortgage life, mortgage guaranty, mortgage disability, automotive dealer gap insurance.
Limited lines insurance
Motor vehicle damage insurance, title insurance.
Resident
Person who lives in NC or any county outside the state that borders NC.
Commissioners term in office
4 years.
Insurers and agents must maintain a log of complaints
5 years.
To apply for a hearing
30 days.
Age to apply for license
18 years.
Required pre licensing education for agent’s license
20 hours.
Required pre licensing for Medicare
10 hours.
Term of temporary license
180 days.
To submit appointment notification to the commissioner
30 days.
For insurer to notify the commissioner of the agent appointment termination
30 days.
For insurer to notify agent of appointment termination
15 days.
For insurer to supply proof of loss forms after receiving notice of loss
15 days.
To supply access to recorded personal information, after written request
30 days.
For a licensee to notify the commissioner of any change of address or e-mail address
10 days.
For a licensee to notify the commissioner of any criminal convictions
10 days.
CE requirements for all licenses
24 hours every two years depending on birth year.
Ethics CE requirement
3 hours every compliant period.
Flood insurance CE requirement for property, personal lines and adjusters
3 hours every other compliance period.
Initial fine for violating insurance code
$100-$1000.
Fine for willfully violating a cease and desist order
$1000-$5000 per count.
Fine for violating insurance code following the issuance of a cease and desist order
$10,000-50,000.
Broker’s bond
$15,000.
Fine for willfully making false statements
$2,000-10,000.
License registration fee
$50.
Fine for soliciting membership in an unlawful fraternal benefit society
$1000-5,000.
The maximum amount of the association’s liability to 1 individual
$300,000.
The maximum amount of the association’s liability to 1 contract holder covered by an unallocated annuity
$5,000,000.
Administrative fee for failing to notify the commissioner of change in residence or e-mail address within 10 business days
$50.
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.
Rights of minors
All minors age 15 and older may make contracts of insurance or annuity with any life insurance company.
Fraternal benefit society
Life or health insurance company formed to provide insurance for members of an affiliated fraternal organization.
