NC Statutes and Regulations Pertinent to Life Insurance, Exams of Insurance Economics

Download NC Statutes and Regulations Pertinent to Life Insurance and more Exams Insurance Economics in PDF only on Docsity! LESSON 11 NC STATUTES & REGULATIONS PERTINENT TO LIFE INSURANCE LATEST VERSION 2024 (verified) Adjuster - ANS-a person who for investigates or reports to his principal relative to claims arising under insurance claims arising under insurance contracts other than life or annuity for any type of compensation. Agent - ANS-a person licensed to solicit applications for, or negotiate a policy, of insurance. Agent, Adjuster, Etc., Acting Without a License or Violating Insurance Law - ANS-Class 1 Misdemeanor for anyone w/out appropriate license to: -act as, or pretend to be, principal, agent, broker, limited representative, adjuster or licensed motor vehicle damage appraiser without required license. -solicit, examine or inspect any risk. -examine into, adjust, or aid in adjusting any loss. -investigate or advise relative to amount of damages/amount needed to make automotive repairs. -received, collect, transmit any premium of insurance. -any other act of soliciting, making, or executing any contract of insurance of any kind otherwise the law permits. Application for License - ANS--at least 18 -not committed any act that is grounds for probation, suspension, nonrenewal or revocation -satisfied education and training -paid fees -passed required exams. Appointment of Agents - ANS-an insurer may appoint its agent as an individual who holds a valid agent's license issued by Commissioner. Appointing insurer must file a notice of appointment within 15 days after the date of the first insurance application is completed. -insurer pays appointment fee. -Agent remains appointed until the appointment is cancelled. -Must be renewed each year by April 1. Books and Papers Required to be Exhibited - ANS-Books, accounts, or papers of any licensed company must be exhibited to Commissioner upon request. Refusal or false statements are subject to suspension or revocation of license and Class 1 misdemeanor if guilty. Broker - ANS-licensed agent who procures insurance for a party other than himself through a licensed agent of insurance that is licensed to do business in that State but for which the broker is not authorized to act as agent. Carryover Credit - ANS-whole ICECs can be carried over into the following compliance period; no limit on ICECs carried over. Certain Insurance Activities by Lenders with Customers Prohibited - ANS-Lenders may not make, renew, finance or establish any terms or conditions of any loan. Lenders may not include organizations of the Farm Credit System. Civil Penalties or Restitution Violations; Administrative Procedure - ANS-After notice to licensee and opportunity for hearing the person may have to pay: -fine of $100-$1000 ordered by Commissioner based on degree and extent of harm. -restitution to any person harmed -restitution to any state agency to cover administrative fees. Commissioner - ANS-Commissioner of Insurance of NC or authorized designee -Heads state Department of Insurance -Responsible for fair ratemaking, injury prevention efforts, and close regulation of insurance solvency and industry practices. Commissioner's Election and Term of Office - ANS--Elected by the people; same as General Assembly and State officers. -Term begins January 1st after they are elected and is 4 years or until someone else is elected. -Governor fills in any vacancy in an unexpired term. Complaint Records - ANS-Insurer or agents must keep itemized log of any written complaints w/ the following: -Department's file number, name of insured, nature of complaint, insurer's department subject to the complaint, policy or claim number of the insured, final disposition of the complaint. -Records kept for 5 years or until Commissioner has adopted final report of general examination that contains review of the records for that calendar year. General Rules to Soliciation - ANS-insurer is subject to maintaining a complete file containing one copy of each document authorized by the insurer. Must contain one copy of each authorized form for a 3 year period following date of its last authorized use. Hardship - ANS-if licensee is experiencing hardship, may request extension for CEs before the last month of their compliance year. Included in notice when there is a change of benefits: - ANS--whether personal information will be collected -types of personal information that will be collected -description of consumer rights -that information retained from a report may be disclosed to other persons/organizations -other disclosures required by NC law. Individual Policy Standard Provisions - ANS-Individual policy may not be delivered if it does not contain: grace period, incontestability, misstatement of age or gender, suicide, reinstatement Industrial Life - ANS--premiums payable monthly or more frequently; face amount less than $1000; "Industrial Policy" is part of policy description. Insurance Continuing Education Credits - ANS-(ICECs) - 24 per biennial compliance period for those licensed in: life, accident and health/sickness, property, casualty, personal lines. -Must maintain record of ICECs for 5 years. Interstate Reciprocity in Producer Licensing - ANS-Person can receive nonresident producer license if: -they are licensed and in good standing in their home state. -submitted a request for licensure and paid fees. -submitted a copy of this application to their home state. -home state awards nonresident producer licenses to residents of NC on a reciprocal basis. Investigation of Charges - ANS-Commissioner must investigate any complaint of violations of Chapter 58. -If complaint is justified, the company is subject to penalties described in Chapter 58 as well as paying expenses for the investigation. -If company does not pay, Commissioner is authorized to bring a civil action to the company for collection of those expenses. License Required - ANS-A person may not sell, solicit, or negotiate insurance in NC without a license for that kind of insurance. License Requirements - ANS-File application, satisfy education and training, pass state exam, (brokers = bond), denial of license, resident (in the state) or nonresident license. License Surrender - ANS--Licensee accused of any act, omission, or misconduct that would subject to suspension or revocation may surrender license for a period of time established by Commissioner. Life Insurance Contract Must State: - ANS- Life Insurance Disclosure Act - ANS-to require information to be delivered to purchasers of life insurance that will improve: -buyer's ability to select the plan that best suits their needs. -buyer's understanding of the policy -ability of the buyer to evaluate costs of similar plans Limited License for Rental Car Companies - ANS-Commissioner my issue limited license for insurance to rental car companies. Limited Line Credit Insurance - ANS-Credit insurance written, mortgage life, mortgage guaranty, mortgage disability, automobile dealer gap, or any insurance offered in connection with an extension of credit limited to partially/wholly extinguishing that credit obligation; Commissioner determined form of limited line credit insurance. Limited Line Credit Insurance Producer - ANS-A person who sells, solicits, or negotiates one or more forms of limited line credit insurance coverage to individuals through a master, corporate, group, or individual policy. Limited Lines Insurance - ANS-motor vehicle physical damage and title insurance Limited Lines Producer - ANS-A person authorized by the Commissioner to sell, solicit, or negotiate limited lines insurance. Limited Representative - ANS-a person who is authorized to solicit or negotiate contracts for insurance types identified in G.S. 58-33-26(g) and which kinds of insurance are restricted in the scope of coverage afforded. May Require Records, Reports, Etc., for Agencies, Agents and Others - ANS- Violation of recordkeeping rules and regulations result in: -first offense: license(s) suspended or revoked for 6 months. -second offense: license(s) suspended or revoked for 1 year. Refusal of submitting information to Commissioner can result in revocation and refusal of license. Meaning of Terms "Accident", "Accidental Injury", and "Accidental Means" - ANS-Must be defined to imply "result" language and may not include words that establish an accidental means test. -Applies to provisions in group life, group accident, group health, and group accident and health insurance policies, and group annuities after October 1, 1989 Minors in NC have full power and authority to make contracts of insurance at age - ANS-15 NAIC - ANS-National Association of Insurance Commissioners Notice of Insurance Information Practices - ANS-insurance institution or agent must provide a notice to all applicants or policyholders in connection with insurance transactions Notice of Non-payment must be issued - ANS-to insured's last known address at least 15 but no more than 45 days prior to when payment is due prior to forfeiture. Notification of Criminal Convictions; Change of Address; Service of Notice; Contracts for Online Service, Admin Services, or Regulatory Data Systems - ANS- -Applicants provide Commissioner with address and email address; has 10 business days to inform Commissioner of any changes or is subject to a $50 fee. -Any conviction other than traffic violation must be reported to Commissioner within 10 business days. -Commissioner will contact licensee directly or send first-class mail for any service notices. -Licensees needing to notify Commissioner may do so in writing or with approved online service. -Commissioner may work with NAIC to get an online service for licensees.