Nc Life Insurance 6

Front 1

Commissioner

Back 1

- Elected to a 4 year term during each general election.

- There is no term limit associated with the office

- DOES NOT set rates for insurance policies

Front 2

If a licensee is convicted for any crime other than a Motor Vehicle infraction, the licensee shall notify the Commissioner within ____ days after the conviction

Back 2

10

Front 3

Persons suspected of criminal violations of NC insurance law are given a ____ day notice prior to the date of any hearing.

Back 3

10

Front 4

Each licensee must give WRITTEN notification to the NCDOI of any change to their residential address or email address or email address within ___ days of the change.

Back 4

10

- Failure to provide this information may result in a $50 fee

Front 5

A person who willfully and knowingly

- Makes a false insurance claim
- Presents and proof in support of a false insurance claim
- Prepares or makes a false account, certificate, affidavit, proof of loss or other documents or writings to an insurer with the intent that it shall be presented or used in support of a claim

will be punished as a __________________ for insurance fraud.

Back 5

Class I Felon

Front 6

Embezzlement of money received is punishable as a ____________________

Back 6

Class H Felony

- A representative must provide evidence of the suspected crime to the Commissioner within *30 DAYS*

- Embezzlement does not have to take place, however, the intent must be proven

Front 7

The Commission must examine the records of each Domestic Insurer every ______ years.

Back 7

5

Front 8

All insurance agents must keep the records of complaints made to the department and communicated to the insurer or agent for a period of ___ years

Back 8

5

Front 9

Statements and descriptions in an insurance policy application or in the policy itself are considered _________________.

Back 9

Representation

- They are NOT warranties

Front 10

No insurance company can refuse to insure an individual solely because of _____________ or _________ ____________or _____________ or ___________ ____________, race, color or ethnic orgin

Back 10

blindness or partial blindness or deafness or partial deafness

Front 11

When an insurer requires a written proof of loss, the form must be furnished within ____ days AFTER the receipt from the notice of a claim

Back 11

15

Front 12

Agent MAY accept payment of premium by ______ _______.

Back 12

Credit Card.

Front 13

Insurance Agent Applicant must meet the following:

Back 13

- Applicant must apply to the Commissioner (this is done by taking the state exam)

- They must be at least **18 YEARS** old and be
+ Competent
+ Trustworthy
+ Financially responsible
+ Have not willfully violated the insurance laws of this state or any other state

- They must have the required (prelicensing) education

- Applicant must pass the licensing exam required by law

Front 14

Restricted License

Back 14

May be issued by the Commissioner which is valid to represent the insurer in a foreign country

- A person may be licensed as a foreign military sales agent to represent an insurer

Front 15

Limited Representative

Back 15

A person who is authorized to sell contracts for the particular type of insurance as identified by the license

Limited Lines insurance include:
- Dental Services
- Limited line Credit Insurance
- Motor Club
- Prearrangement Insurance (funeral, burial)
- Travel, Accident
- Vehicle Service Agreements

Front 16

An insurer must report to the Commissioner the names of all appointed Agents and pay the prescribed appointment fee within ____ days of the first application for insurance

Back 16

15

Front 17

Appointments must be renewed annually by ____________

Back 17

April 1st

Front 18

Insurance Agents writing business in NC may NOT write business for...

Back 18

...insurance companies that are not admitted and/or authorized to do business in NC

Front 19

An insurer or authorized representative of the insurer who terminates the appointment with the Agent must notify the Commissioner within ____ days after the effective date of the termination

Back 19

30

Front 20

Within ____ days after notifying the Commissioner, the insurer must mail a copy of the notification to the Agent and the Agents last known address.

Back 20

15

Front 21

Resident License

Back 21

Agent reside in NC.

- Any issued license is void if the licensee ceases to be a resident of the state

Front 22

Nonresident License

Back 22

Agent holds a same type of license in another state.

Front 23

An Agent must report to the Commissioner an administrative action taken against them in another state or by another government agency in NC within ____ days after the final disposition of the matter.

Back 23

30

Front 24

Within ____ days after the initial pretrial hearing date, an agent must report to the Commissioner any criminal prosecution taken in state.

Back 24

30

Front 25

If one applies for and insurance Agents license in NC and is currently licensed for the same types of insurance in their current home state, they are...

Back 25

... not required to complete any pre-licensing education or exam if they move to NC.

Front 26

Any agent, broker or insurer must notify the Commissioner of a filing for bankruptcy within ____ days of filing

Back 26

3

Front 27

Whenever the NC Commissioner denies an initial application for a license, the must...

Back 27

...notify the applicant, IN WRITING, the reasons for denial

- Within 30 days, the applicant may request, in writing, a hearing

Front 28

The Commissioner may issue a temporary insurance agent license for a period of _____ days or longer for good cause

Back 28

180

- This temp license may be issued to anyone that the Commissioner deems as a responsible party

Front 29

Any licensee who ceases to maintain their residency in this State shall deliver their insurance license to the Commissioner by personal delivery or by mail within ____ days after terminating residency

Back 29

30

Front 30

Rebating

Back 30

Any valuable consideration not specified in the contract that is offered as an inducement to purchase insurance

EXAMPLE – would be offering to pay a portion of the commissions from the policy or paying a portion of the premium

Front 31

Any agent or limited rep who signs and BLANK contract or policy of insurance is guilty of a ______________________ and upon conviction, shall be punished only by a fine of $1000 - $5000.

Back 31

Class 3 Misdemeanor

Front 32

If any persons acts or pretends to act either as a licensee without a license, which is required by law, is deemed guilty of a ______________________.

Back 32

Class 1 Misdemeanor

Front 33

Commingling (NCAC)

Back 33

The accounting records and monies maintained by Agents on behalf of insurers and policyowners must be kept SEPARATE from any other business or personal records or accounts

Front 34

Ethical Standards (NCAC)

Back 34

Agents, Brokers, Limited Reps, Appraisers, and Adjusters must:

- Identify themselves and their occupation in any transaction with the public regarding insurance affairs

- Carry their issued insurance license while conducting insurance affairs

- Act as an ethical manner that inspires confidence in the public of the person’s honesty

Front 35

Federal Fair Credit Reporting Act of 1971 (Article 39)

Back 35

Established the right of a consumer to know what info has been collected on them.

- Gave the consumer the right to challenge inaccurate info and prohibited use of materials dating back after a specified number of years

Front 36

The Privacy Act of 1974 (Article 39)

Back 36

Established the requirement that personal info collected by the insurance industry could not be given to any other party without the consent of the affected party

Front 37

Valid Disclosure Authorization Form will remain valid up to _____ months from the date signed if the application involves Life or Health Insurance

Back 37

30

Front 38

Within ____ days of the notice date from an adverse underwriting decision, the insurer or agent must furnish the 1) __________________________________ 2) ___________________________ within 21 business days of the request date

Back 38

90

1) Specific reason for the adverse decision if not initially furnished in writing and

2) Specific terms of personal and privileged info that support those reasons

Front 39

Defamation

Back 39

The dissemination of information orally or in writing that provides a false or derogatory statement that would harm the reputation of another party is strictly prohibited

Front 40

A person who attempts to obtain anything of value from another by false pretenses with intent to cheat or defraud is guilty of a ____________________.

Back 40

Class H Felony

Front 41

NC continue Education is required of all insurance agents, brokers, and adjusters every ____ years

Back 41

2

Front 42

Compliance Period

Back 42

The 2 year period (Biennium) in which the licensee must complete their continuing education.

- A total of 24 hours is due by the end of the month of the licensee’s birthday in each Biennium

Front 43

The failure to meet the continuing education requirements will result in...

Back 43

...the cancellation of their license

Front 44

Within ____ days of the end of their compliance period, they cannot sell or service insurance

Back 44

120

Front 45

If requirements for reinstatement are not completed within _____ days, the licensee will be required to complete the full pre-licensing education requirement and pass the relative licensing exam.

Back 45

120

Front 46

A licensee may request a ____ day extension of their normal compliance period from the NCDOI by completing the appropriate request form and paying a $75 fee

Back 46

30

- Request must be made no sooner than 30 days before the end of their compliance period and no later than the last day of their compliance period