NC PC exam
Converge D: Fair Rental Value - answer Rental value really
limit of 20% of the coverage A limit.
Contract of Insurance - answer A contract of insurance is an agreement that obligates
an insurer to compensate an insured when there is destruction, loss, or injury to
something in which the insured has an interest.
Commissioner of Insurance (election) - answer- Elected by NC residents
- Severs for four years
- If they leave prior to end of term, the governor takes over position
Commissioner of Insurance Duties/Powers - answer Advises the Governor on insurance
matters
DOES NOT ESTABLISH LAWS/Rules/Regulations!!
Administering and executing the applicable laws in North Carolina and adopting rules to
enforce and carry out the provisions of those laws
Receiving and examining each financial statement required by law
Conducting examinations, investigations, and hearings as necessary to administer state
insurance laws
Reporting to the Attorney General any violations of laws relative to insurance
companies and the overall business of insurance
Compiling and making available to the public a list of rates charged and explanations of
coverages provided by insurers in connection with residential property and private
passenger insurance
Approving or disapproving rates, forms, classification plans, rating plans, plans of
operation, and Safe Driver Incentive Plans
Upon request by any citizen of North Carolina, providing a statement of the provisions of
any insurance contract offered or issued to that citizen
Seeking restraining orders, from the appropriate superior courts, against persons who
are violating insurance laws
,Notifications to the Commissioner - answerEvery applicant for a license MUST provide
the Commissioner with a residential address and email address.
A licensee MUST notify the Commissioner in writing within 10 days of a change in
residential address or email address.
Same goes for violations (10 days)
If a licensee is convicted in a court of competent jurisdiction for any crime, OTHER than
a minor traffic infraction, the licensee must notify the Commissioner in writing within 10
days after the conviction.
Civil Penalties or Restitution for Violations - answerViolation of any provisions of the
general statutes subjects the licensee to suspension or revocation, after notice and
opportunity for a hearing. After a hearing, the Commissioner may, in addition to or
instead of suspending or revoking a license, order payment of a monetary penalty. The
penalty cannot be less than $100 or more than $1,000 and will be in addition to
payment of any other penalty for a violation of the criminal laws of this state.
Judicial Review - answerAny order or decision made, issued, or executed by the
Commissioner will be subject to a judicial review in the Superior Court if a petition is
filed within 30 days from the date of delivery of the order or decision. The judicial review
does not apply to an order regarding financial impairment or a decision that the
premium rates charged or filed on any class of risk are excessive, inadequate, or
unfairly discriminatory.
Investigations of Complaints - answerA citizen of this state may file a complaint that a
company authorized to do business in this state has violated any provisions of these
laws. The Commissioner must investigate the citizen's complaint against an insurer and
may examine the insurer's books, records, and documents. The Commissioner may
request information for an investigation from any person. Any person, employee, or
agent acting without malice, is not subject to civil liability for libel or slander by providing
to the Commissioner reports or other information relating to any known or suspected
fraudulent insurance claims or transactions.
If the complaint is justified, the insurer must pay investigation expenses and any
appropriate fines.
False Statements to Procure or Deny Benefits - answerAny person who presents a
written or oral statement that contains false or misleading information material to a claim
to procure or deny benefits is guilty of a Class H felony. The person must have the
intent to injure, defraud, or deceive an insurer or insurance claimant.
Each claim is considered a separate count. Upon conviction the court may impose
probation and order the defendant to pay restitution, including compensatory damages,
attorney's fees, costs, and reasonable investigation costs.
, Embezzlement - answerAn insurance agent, broker, or administrator who does any of
the following with money or consideration received based on their performance will be
guilty of a felony:
Embezzles
Fraudulently converts for their own use or withholds
Disposes of
Appropriates
Lends
Invests
Embezzlement in the amount of $100,000 or more is a Class C felony; less than
$100,000 is a Class H felony.
Report to the Commissioner - answerAny insurance company, employee,
representative, or licensee who has reason to believe that any other person has violated
the law or that any entity licensed by the Commissioner is financially impaired must
inform the Commissioner and provide a complete statement of all relevant facts. The
Commissioner may suspend, revoke, or refuse to renew the license of any licensee who
fails to comply.
Punishment for Misstatements - answerMaking willful misstatements of information in
financial or other required statements is a Class I felony, punishable by a fine of not less
than $2,000 and not more than $10,000.
Records Maintenance/Inspection - answerAll companies, agents, or brokers doing any
kind of insurance business in North Carolina must make and keep a full and correct
record of the business done by them. This includes:
The policy/certificate of renewal number, date, term, amount insured, premiums
The person(s) to whom it was issued
Information from these records must be provided to the Commissioner on demand, and
the original books of record shall be open to the Commissioner's inspection whenever
they so request.
Producer of Record - answerEvery insurance agency transacting insurance business in
North Carolina shall appoint a producer of record. This person shall have the
responsibility of seeing that all records are maintained as required and provided to the
Commissioner as requested.
Any person who is subject to and violates the record-keeping regulations may be
subject to the following disciplines after a notice and hearing:
For the first offense, the person may have their license suspended or revoked for not
less than one month or more than 6 months
For the second offense, the person may have their license suspended or revoked for
one year
Any person who refuses to provide records required by the Commissioner or who
makes any false statements about records is guilty of a Class 1 misdemeanor and
subject to license suspension or revocation.
Converge D: Fair Rental Value - answer Rental value really
limit of 20% of the coverage A limit.
Contract of Insurance - answer A contract of insurance is an agreement that obligates
an insurer to compensate an insured when there is destruction, loss, or injury to
something in which the insured has an interest.
Commissioner of Insurance (election) - answer- Elected by NC residents
- Severs for four years
- If they leave prior to end of term, the governor takes over position
Commissioner of Insurance Duties/Powers - answer Advises the Governor on insurance
matters
DOES NOT ESTABLISH LAWS/Rules/Regulations!!
Administering and executing the applicable laws in North Carolina and adopting rules to
enforce and carry out the provisions of those laws
Receiving and examining each financial statement required by law
Conducting examinations, investigations, and hearings as necessary to administer state
insurance laws
Reporting to the Attorney General any violations of laws relative to insurance
companies and the overall business of insurance
Compiling and making available to the public a list of rates charged and explanations of
coverages provided by insurers in connection with residential property and private
passenger insurance
Approving or disapproving rates, forms, classification plans, rating plans, plans of
operation, and Safe Driver Incentive Plans
Upon request by any citizen of North Carolina, providing a statement of the provisions of
any insurance contract offered or issued to that citizen
Seeking restraining orders, from the appropriate superior courts, against persons who
are violating insurance laws
,Notifications to the Commissioner - answerEvery applicant for a license MUST provide
the Commissioner with a residential address and email address.
A licensee MUST notify the Commissioner in writing within 10 days of a change in
residential address or email address.
Same goes for violations (10 days)
If a licensee is convicted in a court of competent jurisdiction for any crime, OTHER than
a minor traffic infraction, the licensee must notify the Commissioner in writing within 10
days after the conviction.
Civil Penalties or Restitution for Violations - answerViolation of any provisions of the
general statutes subjects the licensee to suspension or revocation, after notice and
opportunity for a hearing. After a hearing, the Commissioner may, in addition to or
instead of suspending or revoking a license, order payment of a monetary penalty. The
penalty cannot be less than $100 or more than $1,000 and will be in addition to
payment of any other penalty for a violation of the criminal laws of this state.
Judicial Review - answerAny order or decision made, issued, or executed by the
Commissioner will be subject to a judicial review in the Superior Court if a petition is
filed within 30 days from the date of delivery of the order or decision. The judicial review
does not apply to an order regarding financial impairment or a decision that the
premium rates charged or filed on any class of risk are excessive, inadequate, or
unfairly discriminatory.
Investigations of Complaints - answerA citizen of this state may file a complaint that a
company authorized to do business in this state has violated any provisions of these
laws. The Commissioner must investigate the citizen's complaint against an insurer and
may examine the insurer's books, records, and documents. The Commissioner may
request information for an investigation from any person. Any person, employee, or
agent acting without malice, is not subject to civil liability for libel or slander by providing
to the Commissioner reports or other information relating to any known or suspected
fraudulent insurance claims or transactions.
If the complaint is justified, the insurer must pay investigation expenses and any
appropriate fines.
False Statements to Procure or Deny Benefits - answerAny person who presents a
written or oral statement that contains false or misleading information material to a claim
to procure or deny benefits is guilty of a Class H felony. The person must have the
intent to injure, defraud, or deceive an insurer or insurance claimant.
Each claim is considered a separate count. Upon conviction the court may impose
probation and order the defendant to pay restitution, including compensatory damages,
attorney's fees, costs, and reasonable investigation costs.
, Embezzlement - answerAn insurance agent, broker, or administrator who does any of
the following with money or consideration received based on their performance will be
guilty of a felony:
Embezzles
Fraudulently converts for their own use or withholds
Disposes of
Appropriates
Lends
Invests
Embezzlement in the amount of $100,000 or more is a Class C felony; less than
$100,000 is a Class H felony.
Report to the Commissioner - answerAny insurance company, employee,
representative, or licensee who has reason to believe that any other person has violated
the law or that any entity licensed by the Commissioner is financially impaired must
inform the Commissioner and provide a complete statement of all relevant facts. The
Commissioner may suspend, revoke, or refuse to renew the license of any licensee who
fails to comply.
Punishment for Misstatements - answerMaking willful misstatements of information in
financial or other required statements is a Class I felony, punishable by a fine of not less
than $2,000 and not more than $10,000.
Records Maintenance/Inspection - answerAll companies, agents, or brokers doing any
kind of insurance business in North Carolina must make and keep a full and correct
record of the business done by them. This includes:
The policy/certificate of renewal number, date, term, amount insured, premiums
The person(s) to whom it was issued
Information from these records must be provided to the Commissioner on demand, and
the original books of record shall be open to the Commissioner's inspection whenever
they so request.
Producer of Record - answerEvery insurance agency transacting insurance business in
North Carolina shall appoint a producer of record. This person shall have the
responsibility of seeing that all records are maintained as required and provided to the
Commissioner as requested.
Any person who is subject to and violates the record-keeping regulations may be
subject to the following disciplines after a notice and hearing:
For the first offense, the person may have their license suspended or revoked for not
less than one month or more than 6 months
For the second offense, the person may have their license suspended or revoked for
one year
Any person who refuses to provide records required by the Commissioner or who
makes any false statements about records is guilty of a Class 1 misdemeanor and
subject to license suspension or revocation.
