Lesson 11: NC Statutes & Regulations Pertinent to Life Insurance Questions and Answers Graded A+

esson 11: NC Statutes & Regulations Pertinent to Life Insurance Questions and Answers Graded A+ Contract of Insurance Agreement by which the insurer is bound to pay money or its equivalent, or do some act of value to the insured upon and as an indemnity or reimbursement for the destruction, loss, or injury of something in which the party has an interest. Commissioner 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. Department Department of Insurance of NC NAIC National Association of Insurance Commissioners Person individual, partnership, firm, association, corporation, joint-stock company, trust, any similar entity, or combination acting together. Commissioner's Election and Term of Office -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. Powers and Duties of Commissioner -prescribe the necessary forms and financial statements to entities as described in Chapter 58. -report any violations of the law by insurance companies to the Attorney General -give synopsis of any insurance contract offered to citizens -administer oaths required in the discharge of Commissioner's official duty. -compile and make available list of rates charged and explanation of coverage for: Insurance against loss to residential real property and Private passenger (nonfleet) motor vehicle -administer and enforce provisions of Patient Protection and Affordable Care Act and the provisions of the Health Care and Education Reconciliation Act of 2010. Examination, Hearings, and Investigations -examinations, hearings, and investigations may be conducted by the Commissioner personally. -Commissioner may arrest with warrant or have person arrested if there is evidence of criminal activity. -All hearings must be held in ordinance with NC General Statutes and be at a time/place designated in a written notice by the Commissioner and given to the person cited. -Notice must state subject of inquiry and any charges. Restraining Orders; Criminal Convictions -Restraining orders are given when any person violates or threatens to violate Chapter 58, or Article A of Chapter 143 of the General Statutes. -Application must be given in the superior court of any county. -When licensee is convicted in court, their license is suspended until reinstated by the Commissioner. -Conviction: adjudication of guilt, plea of guilt, and plea of nolo contendere. License Surrender -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. Notification of Criminal Convictions; Change of Address; Service of Notice; Contracts for Online Service, Admin Services, or Regulatory Data Systems -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. Civil Penalties or Restitution Violations; Administrative Procedure 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. Investigation of Charges 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.