Unit 21 - NC Statutes and Regulations Common to P and C Insurance Activities

commissioner of insurance

elected by the people of the state of NC. Term is from Jan. 1 following election and lasts 4 years or until a successor is elected. They are the head of the NC Department of Insurance.

commissioner duties

see laws executed, furnish forms, review annual statements, investigate dom. insurers once every five years and report violations to the attorney general

injunctions

commissioner can apply for a restraining order and injunction. Conviction includes adjudication of guilt, a plea of guilty, or a plea of nolo contendere. Conviction of an insurance licensee for a criminal violation suspends their license.

penalty for false statements

If a person willfully misstates information in any financial statement, he is guilty of perjury. The entity on whose behalf the person made the statement is subject to a fine of at least $2,000 to $10,000.

agent

person licensed to solicit insurance applications or negotiate an insurance policy

broker

person who is licensed as a producer and obtains insurance for third parties through an agent of an insurer

insurance producer

person required to be licensed to sell, solicit, or negotiate insurance

adjuster

individual who, for salary, fee, commission, or other compensation of any nature, investigates claims arising under insurance contracts other than life or annuity.

limited representative

person authorized by the Commissioner to solicit contracts for credit life, accident and health, credit, travel accident and baggage, motor club, dental services, motor vehicle physical damage, and title insurance

business entity

corporation, association, partnership, limited liability company, limited liability partnership, or other legal entity excluding a sole prprietorship

consumer report

any written, oral, or other communication of information bearing on a person's credit worthiness, credit standing, credit capacity, character, general reputation, personal characteristics, or mode of living that is used in connection with an insurance transaction

individual

past, present or proposed named insured or applicant/claimant

investigative consumer report

report of information through a person's neighbors, friends, associates, etc.