North Carolina Regulations For Life

Question 0

Department

Answer 0

Department of insurance of North Carolina

Question 1

Commissioner

Answer 1

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

Question 2

NAIC

Answer 2

National association of insurance commissioners

Question 3

Person

Answer 3

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

Question 4

Location of incorporation

Answer 4

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

Question 5

Domestic insurer
Foreign insurer
Alien insurer

Answer 5

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

Question 6

Commissioner power and duties

Answer 6

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

Question 7

Class H felony

Answer 7

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.

Question 8

Class c felony

Answer 8

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

Question 9

Class I felony

Answer 9

Anyone who willfully misstates information

Question 10

Addition coinsurance clause

Answer 10

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

Question 11

Limited line credit insurance

Answer 11

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

Question 12

Limited lines insurance

Answer 12

Motor vehicle damage insurance, title insurance,

Question 13

Resident

Answer 13

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

Question 14

Commissioners term in office

Answer 14

4 years

Question 15

Insurers and agents must maintain a log of complaints

Answer 15

5 years

Question 16

To apply for a hearing

Answer 16

30 days

Question 17

Age to apply for license

Answer 17

18 years

Question 18

Required pre licensing education for agent’s license

Answer 18

20 hours

Question 19

Required pre licensing for Medicare

Answer 19

10 hours

Question 20

Term of temporary license

Answer 20

180 days

Question 21

To submit appointment notification to the commissioner

Answer 21

30 days

Question 22

For insurer to notify the commissioner of the agent appointment termination

Answer 22

30 days

Question 23

For insurer to notify agent of appointment termination

Answer 23

15 days

Question 24

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

Answer 24

15 days

Question 25

To supply access to recorded personal information, after written request

Answer 25

30 days

Question 26

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

Answer 26

10 days

Question 27

For a licensee to notify the commissioner of any criminal convictions

Answer 27

10 days

Question 28

CE requirements for all licenses

Answer 28

24 hours every two years depending on birth year

Question 29

Ethics CE requirement

Answer 29

3 hours every compliant period

Question 30

Flood insurance CE requirement for property, personal lines and adjusters

Answer 30

3 hours every other compliance period

Question 31

Initial fine for violating insurance code

Answer 31

$100-$1000

Question 32

Fine for willfully violating a cease and desist order

Answer 32

$1000-$5000 per count

Question 33

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

Answer 33

$10,000-50,000

Question 34

Broker’s bond

Answer 34

$15,000

Question 35

Fine for willfully making false statements

Answer 35

2,000-10,000

Question 36

License registration fee

Answer 36

$50

Question 37

Fine for soliciting membership in an unlawful fraternal benefit society

Answer 37

$1000-5,000

Question 38

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

Answer 38

$300,000

Question 39

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

Answer 39

5,000,000

Question 40

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

Answer 40

$50

Question 41

Freedom of proceeds from creditor claims

Answer 41

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

Question 42

Rights of minors

Answer 42

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

Question 43

Fraternal benefit society

Answer 43

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