North Carolina Regulations For Life 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
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
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
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.
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.
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
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 org.
