NORTH CAROLINA STATUTES AND
REGULATIONS PERTINENT TO
CASUALTY INSURANCE fully solved
an agreement by which the insurer is bound to pay money or its equivalent or to 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 other party has an interest - correct answer ✔✔CONTRACT OF
INSURANCE
Commissioner can investigate any person engaged in the insurance business. They can hire
deputies, investigators, actuaries, and examiners to aid in the examination. If they believes that
a person is engaged in a criminal act, they can arrest the person with a warrant or have the
person arrested. - correct answer ✔✔EXAMINATIONS, HEARINGS, & INVESTIGATIONS
Commissioner may apply to court for a restraining order & injunction to prevent a person from
violating the insurance laws if a person is convicted of a criminal violation of the insurance laws
or enters a plea of no contest. Their license is automatically suspended until reinstated by
Commissioner - correct answer ✔✔INJUNCTIVE POWERS
If a licensee is accused of an act, omission, or misconduct, that would be grounds for
suspending or revoking a license, he or she may surrender the license. A person or entity who
surrenders a license is not eligible for another during the surrender period. - correct answer
✔✔SURRENDER OF LICENSE
A person who applies for an insurance producer's license must give the Department a
residential address and an e-mail address. If the person changes either address, he or she must
notify the Department within 10 days. A person who violates this requirement must pay a $50
administrative fee - correct answer ✔✔NOTIFICATION OF A CHANGE OF ADDRESS
,If a producer is convicted of a crime (other than a motor vehicle infraction), he or she must
notify the Commissioner in writing within 10 days after the date of conviction. A conviction
includes an adjudication of guilt, a guilty plea, or a plea of nolo contendere (no contest). -
correct answer ✔✔NOTIFICATION OF CRIMINAL CONVICTIONS
When acting in good faith, a person who reports insurance fraud is immune from any liability
for providing information to or cooperating with the Commissioner or law enforcement
agencies. However, a person who does so with malice or in bad faith is not granted the same
protection. - correct answer ✔✔IMMUNITY FOR REPORTING FRAUD
~A person who is charged with engaging in an unfair method of competition or committing an
unfair or deceptive act or practice is entitled to a hearing before the Commissioner. The person
must be notified of the time and place of the hearing in advance. The notice will also specify the
offenses and violations with which the person is charged.
If the Commissioner determines that a violation has occurred, he or she may
•suspend or revoke a license or certificate of authority;
•petition a court to impose an order seeking restitution; and/or
•impose a fine between $100 and $1,000 for each violation. - correct answer ✔✔HEARINGS &
PENALTIES FOR VIOLATIONS
~Commissioner may examine the books & records of an insurer & may question its officers and
agents whenever he or she deems it necessary. Commissioner may also examine an insurer & its
agents if a person files a complaint stating that the insurer has violated the insurance laws.
The insurer is responsible for paying all costs of an examination if Commissioner determines
that the company has violated the insurance laws. - correct answer ✔✔INVESTIGATION OF
CHARGES
~A person who knowingly presents a false insurance claim, with the intent to defraud or
deceive, or who assists another in doing so, is guilty of a Class H felony.
A person convicted of insurance fraud will also be ordered to pay restitution to the victims for
the amount of money that was obtained through fraud.
, In a civil action for insurance fraud, the court may award the prevailing party compensatory
damages, attorneys' fees, costs, and reasonable investigative costs. If the prevailing party can
demonstrate that the defendant engaged in a pattern of insurance fraud, the court may award
treble damages. - correct answer ✔✔FRAUDULENT CLAIMS
~An insurance agent, broker, or administrator who embezzled or fraudulently converts money
or other consideration received while transacting insurance is guilty of a felony. A person will be
guilty of one of the following:
•a Class H felony, if the amount involved is less than $100,000
•a Class C felony, if the amount involved is $100,000 or more - correct answer
✔✔EMBEZZLEMENT & MISAPPROPRIATION
A person who willfully misstates information in a financial statement or other document is guilty
of a Class 1 felony. The entity on whose behalf the person made the false statement must pay a
fine of between $2,000 and $10,000. - correct answer ✔✔PENALTY FOR FALSE STATEMENT
~Anyone who believes that insurance fraud, embezzlement, or a violation of the insurance laws
is being or has been committed is required to notify the Commissioner. Insurers and their
employees must also notify the Commissioner if they believe that an insurer is financially
impaired. A person's license may be revoked or not renewed if he or she willfully fails to comply
with this requirement. - correct answer ✔✔REPORTING OF VIOLATIONS
Companies, agents, and brokers must keep records of their insurance transactions, which must
show the following information for each policy.
•policy number.
•date.
•policy term.
•amount insured.
•premiums.
REGULATIONS PERTINENT TO
CASUALTY INSURANCE fully solved
an agreement by which the insurer is bound to pay money or its equivalent or to 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 other party has an interest - correct answer ✔✔CONTRACT OF
INSURANCE
Commissioner can investigate any person engaged in the insurance business. They can hire
deputies, investigators, actuaries, and examiners to aid in the examination. If they believes that
a person is engaged in a criminal act, they can arrest the person with a warrant or have the
person arrested. - correct answer ✔✔EXAMINATIONS, HEARINGS, & INVESTIGATIONS
Commissioner may apply to court for a restraining order & injunction to prevent a person from
violating the insurance laws if a person is convicted of a criminal violation of the insurance laws
or enters a plea of no contest. Their license is automatically suspended until reinstated by
Commissioner - correct answer ✔✔INJUNCTIVE POWERS
If a licensee is accused of an act, omission, or misconduct, that would be grounds for
suspending or revoking a license, he or she may surrender the license. A person or entity who
surrenders a license is not eligible for another during the surrender period. - correct answer
✔✔SURRENDER OF LICENSE
A person who applies for an insurance producer's license must give the Department a
residential address and an e-mail address. If the person changes either address, he or she must
notify the Department within 10 days. A person who violates this requirement must pay a $50
administrative fee - correct answer ✔✔NOTIFICATION OF A CHANGE OF ADDRESS
,If a producer is convicted of a crime (other than a motor vehicle infraction), he or she must
notify the Commissioner in writing within 10 days after the date of conviction. A conviction
includes an adjudication of guilt, a guilty plea, or a plea of nolo contendere (no contest). -
correct answer ✔✔NOTIFICATION OF CRIMINAL CONVICTIONS
When acting in good faith, a person who reports insurance fraud is immune from any liability
for providing information to or cooperating with the Commissioner or law enforcement
agencies. However, a person who does so with malice or in bad faith is not granted the same
protection. - correct answer ✔✔IMMUNITY FOR REPORTING FRAUD
~A person who is charged with engaging in an unfair method of competition or committing an
unfair or deceptive act or practice is entitled to a hearing before the Commissioner. The person
must be notified of the time and place of the hearing in advance. The notice will also specify the
offenses and violations with which the person is charged.
If the Commissioner determines that a violation has occurred, he or she may
•suspend or revoke a license or certificate of authority;
•petition a court to impose an order seeking restitution; and/or
•impose a fine between $100 and $1,000 for each violation. - correct answer ✔✔HEARINGS &
PENALTIES FOR VIOLATIONS
~Commissioner may examine the books & records of an insurer & may question its officers and
agents whenever he or she deems it necessary. Commissioner may also examine an insurer & its
agents if a person files a complaint stating that the insurer has violated the insurance laws.
The insurer is responsible for paying all costs of an examination if Commissioner determines
that the company has violated the insurance laws. - correct answer ✔✔INVESTIGATION OF
CHARGES
~A person who knowingly presents a false insurance claim, with the intent to defraud or
deceive, or who assists another in doing so, is guilty of a Class H felony.
A person convicted of insurance fraud will also be ordered to pay restitution to the victims for
the amount of money that was obtained through fraud.
, In a civil action for insurance fraud, the court may award the prevailing party compensatory
damages, attorneys' fees, costs, and reasonable investigative costs. If the prevailing party can
demonstrate that the defendant engaged in a pattern of insurance fraud, the court may award
treble damages. - correct answer ✔✔FRAUDULENT CLAIMS
~An insurance agent, broker, or administrator who embezzled or fraudulently converts money
or other consideration received while transacting insurance is guilty of a felony. A person will be
guilty of one of the following:
•a Class H felony, if the amount involved is less than $100,000
•a Class C felony, if the amount involved is $100,000 or more - correct answer
✔✔EMBEZZLEMENT & MISAPPROPRIATION
A person who willfully misstates information in a financial statement or other document is guilty
of a Class 1 felony. The entity on whose behalf the person made the false statement must pay a
fine of between $2,000 and $10,000. - correct answer ✔✔PENALTY FOR FALSE STATEMENT
~Anyone who believes that insurance fraud, embezzlement, or a violation of the insurance laws
is being or has been committed is required to notify the Commissioner. Insurers and their
employees must also notify the Commissioner if they believe that an insurer is financially
impaired. A person's license may be revoked or not renewed if he or she willfully fails to comply
with this requirement. - correct answer ✔✔REPORTING OF VIOLATIONS
Companies, agents, and brokers must keep records of their insurance transactions, which must
show the following information for each policy.
•policy number.
•date.
•policy term.
•amount insured.
•premiums.
