CHAPTER 06 ‑ AGENT SERVICES DIVISION
SUBCHAPTER 06A ‑ AGENT SERVICES DIVISION
SECTION .0100 ‑ GENERAL PROVISIONS
11 NCAC 06A .0101 DEFINITIONS
(a) In this Chapter, unless the context otherwise requires:
(1) "Adjusting company" means any
insurance company, independent adjusting company, or public adjusting company
adjusting claims in this State.
(2) "Agent Services Division" or "Division"
means the Agent Services Division of the North Carolina Department of
Insurance, the Division responsible for the licensing, education and regulation
of agents and other licensees.
(3) "Professional Testing Service" or
"Service" means the organization specializing in the development and
administration of licensing examinations on a contract basis.
(4) "State Licensing Examination" or "Examination"
means a collection of items designed to test the applicant's knowledge of the
basic concepts, principles and laws relevant to the insurance profession to
determine the competence to be licensed in North Carolina.
(b) The definitions contained in G.S. 58-33-10 are
incorporated in this Chapter by reference.
History Note: Authority G.S. 58‑2‑40; 58‑33‑30(e)(h);
Eff. February 1, 1976;
Readopted Eff. June 12, 1978;
Amended Eff. February 1, 2008; October 1, 1990; February
1, 1989; July 1, 1986.
11 NCAC 06A .0102 PURPOSE OF
DIVISION
11 NCAC 06A .0103 DEPUTY COMMISSIONER
11 NCAC 06A .0104 DIVISION PERSONNEL
History Note: Authority G.S. 57‑12; 57A‑16;
58‑7.3; 58‑9; 58‑9.2; 58‑40; 58‑40.1;
Eff. February 1, 1976;
Readopted Eff. June 12, 1978;
Repealed Eff. July 1, 1988.
SECTION .0200 ‑ DESCRIPTION OF FORMS
11 NCAC 06A .0201 GENERAL INFORMATION
(a) All forms pertaining to licensure including
applications, bonds, appointments, termination of appointments and other forms required
by Chapter 58 shall be supplied by the Division. The Division shall make these
forms available in an electronic format and require the licensee or company to
file documents electronically with the Commissioner or the Commissioner's
designee. The actual cost of the electronic filing is the administrative fee
charged by the Commissioner's designee which may include a transaction fee, a
credit card processing fee, or other bank processing fee. The administrative
fee shall be paid at the time of the electronic filing transaction by the
electronic payment options made available by the Commissioner's designee
through electronic check, credit card, automated clearing house (ACH), or electronic
funds transfer (EFT). The Division shall provide instructions for proper
completion of all forms.
(b) Forms shall be completed in full and must contain
necessary signatures in order to be accepted. Companies and applicants shall
submit all forms or complete other requirements within time schedules
established under Chapter 58.
(c) Companies or applicants may duplicate forms without
alteration or modification thereto.
(d) If any additional supporting documents, information or
fees are required under Chapter 58, they shall be submitted with the
appropriate forms or applications. The additional supporting documents,
information, or fees required under Chapter 58 shall be filed electronically to
the Commissioner or the Commissioner's designee. The actual cost of the
electronic filing is the administrative fee charged by the Commissioner's
designee which may include a transaction fee, a credit card processing fee, or
other bank processing fee. The administrative fee shall be paid at the time of
the electronic filing transaction by the electronic payment options made
available by the Commissioner's designee through electronic check, credit card,
automated clearing house (ACH) or electronic funds transfer (EFT).
History Note: Authority G.S. 58-2-40; 58-2-250;
Eff. February 1, 1976;
Readopted Eff. June 12, 1978;
Amended Eff. October 1, 2010; February 1, 1989.
11 NCAC 06A .0202 FORM A‑1
11 NCAC 06A .0203 FORM A‑2
11 NCAC 06A .0204 APPLICATION FOR BROKER'S LICENSE
11 NCAC 06A .0205 LICENSE APPLICATION/MOTOR VEHICLE
DAMAGE APPRAISERS
11 NCAC 06A .0206 EXAMINATION PERMIT
11 NCAC 06A .0207 FAILURE LETTER‑PERMIT
History Note: Authority G.S. 58‑9; 58‑40;
58‑40.2; 58‑40.6; 58‑41.1; 58‑44.2;
Eff. February 1, 1976;
Readopted Eff. June 12, 1978;
Amended Eff. July 1, 1986;
Repealed Eff. February 1, 1989.
11 NCAC 06A .0208 BOND FORMS FOR ACCIDENT AND HEALTH
AGENTS
11 NCAC 06A .0209 BOND FORM FOR AGENTS AND GENERAL
AGENTS: NON‑RESIDENTS
History Note: Authority G.S. 58‑9; 58‑41;
Eff. February 1, 1976;
Readopted Eff. June 12, 1978;
Repealed Eff. July 1, 1986.
11 NCAC 06A .0210 N.C. RESIDENT BROKER'S INSURANCE BOND
The "North Carolina Resident Broker's Insurance
Bond" shall include the name of the principal, name of the surety, date
and conditions of bond, bond number, amount of the bond, appropriate signatures
and other pertinent information and must be accompanied by a power of attorney.
History Note: Authority G.S. 58‑33‑30(f)(1);
Eff. February 1, 1976;
Readopted Eff. June 12, 1978;
Amended Eff. February 1, 1989.
11 NCAC 06A .0211 N.C. NON‑RESIDENT BROKER'S
INSURANCE BOND
History Note: Authority G.S. 58‑33‑30(f)(1);
Eff. February 1, 1976;
Readopted Eff. June 12, 1978;
Amended Eff. February 1, 1989;
Repealed Eff. February 1, 2008.
11 NCAC 06A .0212 LICENSES
The Commissioner shall issue an electronic license record to
the licensed individual or business entity showing the name of the licensee,
identifying number of the licensee, date of issue and, if applicable, the type
of insurance a licensee is authorized to sell and the terms of the license.
History Note: Authority G.S. 58-2-40; 58-33-26(k);
Eff. February 1, 1976;
Readopted Eff. June 12, 1978;
Amended Eff. October 1, 2010; October 1, 1990; February
1, 1989; July 1, 1986.
11 NCAC 06A .0213 SELF‑EMPLOYED ADJUSTER RENEWAL
APPLICATION
11 NCAC 06A .0214 MOTOR VEHICLE DAMAGE APPRAISER RENEWAL
APPLICATION
11 NCAC 06A .0215 RESIDENT BROKER APPLICATION
11 NCAC 06A .0216 NONRESIDENT BROKER APPLICATION
History Note: Authority G.S. 58‑33‑25(n);
58‑33‑30(a); 58‑33‑30(h)(1); 58‑33‑30(h)(2);
58‑33‑125;
Eff. February 1, 1976;
Readopted Eff. June 12, 1978;
Amended Eff. October 1, 1990; February 1, 1989;
Repealed Eff. April 1, 2003.
11 NCAC 06A .0217 NORTH CAROLINA NOTICE OF CANCELLATION
History Note: Authority G.S. 58‑33‑55(a)(b);
Eff. February 1, 1976;
Readopted Eff. June 12, 1978;
Amended Eff. February 1, 1989;
Repealed Eff. February 1, 2008.
11 NCAC 06A .0218 TERMINATION OF AGENT WRITING
AUTOMOBILE INSURANCE
History Note: Authority G.S. 58‑9; 58‑40.01;
58‑44.3;
Eff. June 12, 1978;
Repealed Eff. July 1, 1986.
11 NCAC 06A .0219 APPLICATION TO DETERMINE ELIGIBILITY
FOR DESIGNATED AGENT
The "Application to Determine Eligibility for
Designated Agent" shall include the name and address of the agent,
evidence that the agent has satisfied the statutory requirements set out in
G.S. 58‑37‑35(g)(6) and other information to aid the Division in
determining the qualification of the applicant. The form must be signed by the
applicant and notarized.
History Note: Authority G.S. 58‑2‑40; 58‑37‑35(g)(6);
Eff. June 12, 1978;
Amended Eff. October 1, 1990; February 1, 1989.
11 NCAC 06A .0220 DESIGNATED AGENT BOND
The "Designated Agent Bond" shall include the name
of the principal, name of the surety, date and conditions of the bond, bond
number, amount of the bond, appropriate signatures and other pertinent
information and must be accompanied by a power of attorney.
History Note: Authority G.S. 58‑37‑35(g)(6);
Eff. February 1, 1989.
11 NCAC 06A .0221 CANDIDATE GUIDE
11 NCAC 06A .0222 NORTH CAROLINA INSURANCE LICENSE
APPLICATION
11 NCAC 06A .0223 NORTH CAROLINA LIMITED REPRESENTATIVE
APPLICATION
11 NCAC 06A .0224 ADJUSTER AND APPRAISER N.C. LICENSE
APPLICATION
11 NCAC 06A .0225 APPOINTMENT OF NORTH CAROLINA AGENT
11 NCAC 06A .0226 TERMINATION OF NORTH CAROLINA AGENT
APPOINTMENT
11 NCAC 06A .0227 APPLICATION FOR LICENSE TO REPRESENT A
PURCHASING GROUP
11 NCAC 06A .0228 BOND (FORM B) PG‑2
11 NCAC 06A .0229 N.C. INSURANCE AGENT/LICENSE
APPLICATION RISK RETENTION
11 NCAC 06A .0230 APPOINTMENT OF NORTH CAROLINA AGENT ‑
RISK RETENTION
11 NCAC 06A .0231 TERMINATION OF NORTH CAROLINA AGENT ‑
RISK RETENTION
11 NCAC 06A .0232 APPLICATION FOR RESIDENT SURPLUS LINES
LICENSE
11 NCAC 06A .0233 BOND (FORM B) SL‑2
History Note: Authority G.S. 58‑2‑40; 58‑21‑65(b)(2),(f);
58‑21‑65(b)(4); 58‑22‑60; 58-33-30; 58-33-30(a); 58‑33‑35;
58‑33‑40(b)(c); 58‑33‑40(e);
Eff. February 1, 1989;
Amended Eff. October 1, 1990;
Temporary Adoption Eff. October 3, 1991 for a period of 180 days to expire on March 30, 1992;
Amended Eff. March 1, 1992;
Repealed Eff. April 1, 2003.
11 NCAC 06A .0234 RESIDENT SURPLUS LINES LICENSE RENEWAL
History Note: Authority G.S. 58-2-40; 58-21-40(d);
58-21-65(d),(f);
Eff. February 1, 1989;
Temporary Amendment Eff. October 3, 1991 For a Period of
180 Days to Expire on March 30, 1992;
Amended Eff. February 1, 1996; March 1, 1992;
Repealed Eff. October 1, 2010.
11 NCAC 06A .0235 CORPORATE SURPLUS LINES APPLICATION
11 NCAC 06A .0236 APPLICATION FOR CORPORATE/PARTNERSHIP
INSURANCE LICENSE
History Note: Authority G.S. 58-2-40; 58‑21‑65(c)(d);
58‑33‑25(h); 58‑33‑30(a);
Eff. February 1, 1989;
Amended Eff. April 1, 1996; October 1, 1990;
Repealed Eff. April 1, 2003.
11 NCAC 06A .0237 FOREIGN MILITARY SALES AGENT LICENSE
APPLICATION
The "Foreign Military Sales Agent License
Application" shall include personal information, company name, number and
address, signature of applicant and authorized company representative, a
certificate signed by an officer of the company, and other information to aid
the Division in determining if the applicant is qualified for the license.
History Note: Authority G.S. 58‑33‑15;
Eff. February 1, 1989.
11 NCAC 06A .0238 RENTAL CAR COMPANY LICENSE APPLICATION
History Note: Authority G.S. 58-2-40; 58-33-17; 58-33-125(c);
Temporary Adoption Eff. October 3, 1991 For a Period of
180 Days to Expire on March 30, 1992;
Eff. March 1, 1992;
Repealed Eff. October 1, 2010.
11 NCAC 06A .0239 NONRESIDENT SURPLUS LINES LICENSE
APPLICATION
11 NCAC 06A .0240 NONRESIDENT SURPLUS LINES LICENSE
RENEWAL
History Note: Authority G.S. 58‑2‑40; 58‑21‑40(d);
58‑21‑65(f);
Temporary Adoption Eff. October 3, 1991 for a period of 180 days to expire on March 30, 1992;
Eff. March 1, 1992;
Amended Eff. February 1, 1996;
Repealed Eff. April 1, 2003.
SECTION .0300 ‑ EXAMINATIONS
11 NCAC 06A .0301 TYPES OF EXAMINATIONS
History Note: Authority G.S. 58‑2‑40; 58‑21‑65(b)(3);
58‑33‑30(e);
Eff. February 1, 1976;
Readopted Eff. June 12, 1978;
Amended Eff. February 1, 1996, October 1, 1990; February 1, 1989; July 1, 1986;
Repealed Eff. April 1, 2003.
11 NCAC 06A .0302 EXAMINATIONS – Special ACCOMMODATIONS
(ADA)
An individual with a physical disability may have special
assistance from other individuals acting as readers or recorders. Applicants
requiring special assistance shall request the assistance from the test
administrator before registration for the examination. Verification of
handicaps and a statement of all assistance needed shall be included at the
time of application.
History Note: Authority G.S. 58-2-40; 58‑33‑30(e);
Eff. February 1, 1976;
Readopted Eff. June 12, 1978;
Amended Eff. February 1, 1996; February 1, 1989;
Amended Eff. April 1, 2003.
11 NCAC 06A .0303 SCHEDULE OF EXAMINATIONS
The Division will publish or cause to have published the
current schedules of examinations. The schedules shall include day, time and
location of examination. The Commissioner may set other special times for examinations
in addition to those listed on the current examination schedule. An applicant
who cannot take the examination on a scheduled examination date for religious
reasons may request an individually administered test. Such a request must be
in writing by the applicant's religious advisor and sent with the application
for examination and licensure. Individually administered examinations are
given only on a pre‑registered basis.
History Note: Authority G.S. 58‑33‑30(e);
Eff. February 1, 1976;
Readopted Eff. June 12, 1978;
Amended Eff. February 1, 1989; July 1, 1986.
11 NCAC 06A .0304 RESPONSIBILITY OF APPLICANT AT
EXAMINATION SITE
(a) Applicants who have not previously failed the same
examination shall bring to the examination site the Examination Admission
Ticket/Certificate of Course Completion, their confirmation numbers obtained
from the testing service at the time of registration, and two forms of proof of
identity, one of which must be photo bearing.
(b) Applicants who have previously failed an examination
may retake the examination and shall pay applicable fees for each
administration.
(c) Applicants taking the life, accident and health or
sickness, Medicare supplement, long term care, personal lines, property, or
casualty examination shall bring to the examination site an Examination
Admission Ticket/Certificate of Course Completion, validated by an approved
prelicensing school or by the Division indicating that the applicant has
successfully completed the mandatory prelicensing education requirements as
specified in G.S. 58‑33‑30(d)(2). The Examination Admission
Ticket/Certificate of Course Completion is valid for 90 days from the date of
course completion or a maximum of five examination sittings, whichever occurs
first.
(d) No applications shall be supplied at the examination
site for completion by applicants; nor shall required supplies be furnished to
applicants.
(e) Applicants shall arrive at the examination site at the
time specified in the current examination schedule.
History Note: Authority G.S. 58‑2‑40; 58‑33‑30(d)(2);
58-33-31; 58‑33‑30(e); 58‑33‑125;
Eff. February 1, 1976;
Readopted Eff. June 12, 1978;
Amended Eff. February 1, 2008; April 1, 2003; April 1,
1996; October 1, 1990; February 1, 1989.
11 NCAC 06A .0305 ADMINISTRATION OF EXAMINATION
(a) Individuals applying for an agent or adjuster license
shall present to the test site personnel upon request the applicable items
described in 11 NCAC 06A .0304(a) through (d).
(b) Applicants may take simple function calculators, but
shall not take textbooks, other books or papers into the examinations.
Applicants found to have any of these materials shall not be allowed to
continue the examination.
(c) Applicants shall leave the examination room only after
obtaining permission from the examination proctors and handing in exam
materials. No extra time shall be allowed for completing the examination.
(d) Any applicant who gives or receives assistance during
the examination shall not receive an examination score. The proctors of the
examination shall report the incident to the Commissioner.
History Note: Authority G.S. 58-2-40; 58-33-30(e);
Eff. February 1, 1976;
Readopted Eff. June 12, 1978;
Amended Eff. October 1, 2010; February 1, 1996; October
1, 1990; February 1, 1989.
11 NCAC 06A .0306 REGISTRATION FOR EXAMINATION
History Note: Authority G.S. 58-2-40; 58‑33‑30(e);
Eff. February 1, 1976;
Readopted Eff. June 12 1978;
Amended Eff. February 1, 1996; October 1, 1990; February 1, 1989;
Repealed Eff. April 1, 2003.
SECTION .0400 ‑ LICENSING PROCEDURES
11 NCAC 06A .0401 LICENSES: GENERAL PROVISIONS
History Note: Authority G.S. 58‑2‑40; 58‑21‑65(f);
58‑33‑17; 58‑33‑25; 58‑33‑30(h);
Eff. February 1, 1976;
Readopted Eff. June 12, 1978;
Temporary Amendment Eff. October 3, 1991 for a period of 180 days to expire on March 30, 1992;
Amended Eff. March 1, 1992; October 1, 1990; February 1, 1989; July 1, 1986;
Repealed Eff. April 1, 2003.
11 NCAC 06A .0402 LICENSING OF RESIDENT AGENT, LTD
REPRESENTATIVE AND ADJUSTER
(a) An applicant for a resident variable life and variable
annuity product shall hold a resident life license before making application
for a resident variable life and variable annuity product license. An agent
licensed to sell variable life and variable annuity products shall be appointed
by a company authorized to sell variable annuities and variable life insurance
products in North Carolina. The company shall verify that the agent has met
the requirements of the NASD or its successor organization.
(b) A limited representative shall be appointed with each
company for which he will solicit business for the following kinds of
insurance:
(1) Dental services;
(2) Limited line credit insurance;
(3) Motor club;
(4) Prearrangement insurance, as defined in
G.S. 58-60-35(a)(2), when offered or sold by a preneed sales licensee licensed
under Article 13D of Chapter 90 of the General Statutes; or
(5) Travel, accident and baggage.
(c) Responsibility of insurance companies for forms:
(1) Companies shall have on file with the
Division the address and email address of one central licensing office and the
individual within such office to which all correspondence, licenses, and invoices
will be forwarded.
(2) Companies shall have on file with the
Division the name of the individual responsible for all agent appointments and
termination of agent appointments submitted by the company to the Division.
(3) A company shall verify the licensure of an
agent before the company appoints the agent.
(4) Companies shall notify the Division within
10 days after any change of address or email address of the central licensing
office and of any change of the individual within such office to which all correspondence,
licenses, and invoices will be forwarded.
(d) Responsibility of the agent, limited representative and
adjuster:
(1) A person, after surrender or termination of
a license for such period of time that he is no longer eligible for waiver of
the examination, shall meet all legal requirements for previously unlicensed
persons.
(2) Every licensee shall, upon demand from the
Division, furnish in writing any information relating to the licensee's
insurance business within 10 business days after the demand.
(e) An applicant for a resident license shall, if an
electronic record is not available, obtain an original letter of clearance from
his former state of residency certifying the kinds of insurance for which the
applicant was licensed, that all licenses held in that state have been canceled
and that the applicant was in good standing in that state at the time of the
cancellation of licenses. A letter of clearance is valid for 90 days from date
of issuance.
(f) Only individuals may apply for limited representative
and adjuster licenses.
History Note: Authority G.S. 58-2-40; 58-2-195(a);
58-33-26; 58-33-30; 58-33-66;
Eff. February 1, 1976;
Readopted Eff. June 12, 1978;
Amended Eff. October 1, 2010; February 1, 2008; April 1,
2003; February 1, 1996; October 1, 1990; February 1, 1989.
11 NCAC 06A .0403 LICENSING: NONRESIDENT AGENT, LTD
REPRESENTATIVE AND ADJUSTER
History Note: Authority G.S. 58‑2‑40; 58‑33‑30(a),(h)(2);
Eff. February 1, 1976;
Readopted Eff. June 12, 1978;
Amended Eff. October 1, 1990; February 1, 1989;
Repealed Eff. April 1, 2003.
11 NCAC 06A .0404 LICENSING OF BROKER
(a) An applicant shall be a licensed agent in North Carolina for each kind of insurance to be brokered.
(b) A broker's license gives the holder authority to broker
only those kinds of insurance for which he holds an agent's license. Brokering
shall be done through a licensed and appointed agent of the company with which
the business is being placed. A broker's license does not confer binding
authority; it only gives authority to share in commissions with a writing
agent.
(c) Each applicant shall file with his application a surety
bond or cash, certificates of deposit, or securities as provided by statute. Any
cash, certificate of deposit, or securities deposited in lieu of the surety
bond shall be held in accordance with 11 NCAC 11B .0100.
History Note: Authority G.S. 58‑2‑40; 58‑33‑30(f),(h)(1);
Eff. February 1, 1976;
Readopted Eff. June 12, 1978;
Amended Eff. October 1, 1990; February 1, 1989; July 1,
1986;
Temporary Amendment Eff. October 3, 1991 For a Period of
180 Days to Expire on March 30, 1992;
Amended Eff. February 1, 2008; March 1, 1992.
11 NCAC 06A .0405 LICENSING OF NONRESIDENT BROKER
History Note: Filed as a Temporary Amendment Eff.
October 3, 1991 For a Period of 180 Days to Expire
on March 30, 1992;
Authority G.S. 58‑2‑40; 58‑33‑30(f),(h)(2);
58‑33‑125(a);
Eff. February 1, 1976;
Readopted Eff. June 12, 1978;
Amended Eff. March 1, 1992; October 1, 1990; February 1,
1989;
Repealed Eff. February 1, 2008.
11 NCAC 06A .0406 LICENSING OF RESIDENT VARIABLE
CONTRACT LTD REPRESENTATIVE
11 NCAC 06A .0407 LICENSING/NON‑RESIDENT VARIABLE
CONTRACT LTD REPRESENTATIVE
History Note: Authority G.S. 58‑614(e)(1); 58‑615;
Eff. February 1, 1976;
Readopted Eff. June 12, 1978;
Amended Eff. February 1, 1989;
Repealed Eff. October 1, 1990.
11 NCAC 06A .0408 LICENSING OF MOTOR VEHICLE DAMAGE
APPRAISER
History Note: Authority G.S. 58-2-40; 58-33-10(14); 58‑33‑30;
Eff. February 1, 1976;
Readopted Eff. June 12, 1978;
Amended Eff. October 1, 1990; February 1, 1989; July 1,
1986;
Repealed Eff. February 1, 2008.
11 NCAC 06A .0409 LICENSING OF OTHER AGENTS AND
ADJUSTERS
History Note: Authority G.S. 58‑9; 58‑40;
58‑268;
Eff. February 1, 1976;
Readopted Eff. June 12, 1978;
Repealed Eff. February 1, 1989.
11 NCAC 06A .0410 TEMPORARY LICENSE
History Note: Authority G.S. 58-2-40; 58‑33‑65;
Eff. February 1, 1976;
Readopted Eff. June 12, 1978;
Amended Eff. February 1, 1996; October 1, 1990; February 1, 1989; July 1, 1986;
Repealed Eff. April 1, 2003.
11 NCAC 06A .0411 LIMITED LICENSES
History Note: Authority G.S. 58‑41.2;
Eff. February 1, 1976;
Readopted Eff. June 12, 1978;
Repealed Eff. February 1, 1989.
11 NCAC 06A .0412 APPOINTMENT OF AGENT: RESPONSIBILITY
OF COMPANY
Before appointing an agent, an insurance company shall
determine that:
(1) The agent
holds the proper license for each kind of authority for which the agent will be
appointed; and
(2) The agent
has not committed any act that is a ground for probation, suspension,
nonrenewal, or revocation set forth in G.S. 58-33-46.
History Note: Authority G.S. 58‑2‑40; 58‑33‑40;
58-33-46; 18 U.S.C. 1033;
Eff. February 1, 1989;
Amended Eff. April 1, 2003; October 1, 1990.
11 NCAC 06A .0413 LICENSING OF BUSINESS ENTITIES
History Note: Authority G.S. 58-2-40; 58-33-31;
Eff. February 1, 1989;
Amended Eff. March 1, 2008; April 1, 2003; February 1,
1996; October 1, 1990;
Repealed Eff. October 1, 2010.
11 NCAC 06A .0414 ADJUSTER'S LEARNER'S PERMIT
History Note: Authority G.S. 58‑2‑40; 58‑33‑70;
Eff. October 1, 1990;
Amended Eff. April 1, 2003;
Repealed Eff. February 1, 2008.
11 NCAC 06A .0415 LICENSING OF RENTAL CAR COMPANIES'
EMPLOYEES/REPRESENTATIVES
History Note: Filed as a Temporary Repeal Eff. October
3, 1991 For a Period of 180 Days to Expire on
March 30, 1992;
Authority G.S. 58‑2‑40; 66‑205;
Eff. October 1, 1990;
Repealed Eff. March 1, 1992.
11 NCAC 06A .0416 LICENSING OF RENTAL CAR COMPANIES
(a) An applicant must meet the minimum qualifications in
G.S. 58‑33‑17.
(b) An applicant must make application on a form prescribed
by the Commissioner along with the fee prescribed by G.S. 58‑33‑125(c).
(c) An applicant must submit for approval a copy of any
brochure as required in G.S. 58‑33‑17(f)(2). Any changes in the
brochure must be submitted for approval at least 90 days before the proposed
effective date of such changes.
(d) An applicant must submit for approval a copy of its
employee training program. Any changes in the training program must be
submitted for approval at least 90 days before the proposed effective date of
such changes.
(e) Each employee of the licensee who sells insurance
coverages in relation to a rental agreement must meet the minimum training
requirements in the types of insurance authorized in G.S. 58‑33‑17(e).
(f) A list of all employees who have successfully completed
the training course required in G.S. 58‑33‑17(h) and approved by
the Commissioner must be maintained at each licensee's location and must be
available for inspection upon request by the Commissioner at all times during
normal business hours.
(g) The licensee must notify the Commissioner in writing of
any changes, including changes of addresses or the addition of new rental
locations, within 30 days after such changes.
(h) The licensee must provide the Commissioner with any
changes of coverages being provided or insurers at least 30 days before the effective
dates of such changes. If there is a change in insurer, the written
notification must be accompanied by a newly executed certification executed by
the insurer.
(i) The certification from the insurer providing coverage
shall include the:
(1) name of the licensee;
(2) name of the insurer providing coverage;
(3) types of coverage being offered;
(4) policy form number; and
(5) signature and title of the insurance
company officer executing the certificate.
History Note: Filed as a Temporary Adoption Eff.
October 3, 1991 For a Period of 180 Days to Expire on March 30, 1992;
Authority G.S. 58‑2‑40; 58‑33‑17;
58‑33‑125(c);
Eff. March 1, 1992.
11 NCAC 06A .0417 REQUIREMENTS FOR PRE NEED LIMITED REP.
AGENT
Individuals applying to be licensed to sell prearrangement
insurance policies, as defined in G.S. 58‑60‑35(a)(2), shall submit
a Uniform Limited Insurance Representative Application and appropriate fees.
Applicants shall also submit evidence that they are licensed to sell preneed
funeral contracts under G.S. 90, Article 13D.
History Note: Authority G.S. 58-2-40; 58-33-26(g)(5);
Eff. February 1, 1996;
Amended Eff. April 1, 2003.
11 NCAC 06A .0418 FINGERPRINTS REQUIRED FOR CRIMINAL
RECORD CHECKS
(a) An applicant for a resident insurance producer license
shall furnish the Commissioner with a complete set of the applicant's
fingerprints as authorized by G.S. 58-33-48. An applicant for an insurance
producer license as defined in G.S. 58-33-10(7), includes:
(1) An applicant for an initial resident
insurance producer license;
(2) A non-resident insurance producer applying
for a resident insurance producer license;
(3) An adjuster applying for an initial resident
insurance producer license;
(4) A resident insurance producer license
applicant applying for reinstatement of an insurance producer license that has
been lapsed for more than one year; and
(5) A resident insurance producer license
applicant whose license has been suspended or revoked for non-payment of child
support pursuant to G.S. 110-142.1.
(b) As authorized by G.S. 58-33-48, fingerprints shall be
furnished in the following manner:
(1) Each resident insurance producer license
applicant who is required to submit fingerprints under G.S. 58-33-48 shall have
a complete set of their fingerprints electronically captured by a criminal law
enforcement agency approved by State Bureau of Investigation (SBI) to submit fingerprints
via electronic means;
(2) Each resident insurance producer license
applicant who is required to submit fingerprints under G.S. 58-33-48 shall
submit with the insurance producer license application the Electronic Fingerprint
Submission Release of Information Form that has been completed and certified by
a law enforcement officer that the applicant's fingerprints have been submitted
via electronic means to the SBI;
(3) Each resident insurance producer license
applicant who is required to submit fingerprints under G.S. 58-33-48 shall
submit with the insurance producer license application the Authority for Release
of Information form required by the SBI to release the criminal history record
check information to the Department;
(4) Each resident insurance producer license
applicant who is required to submit fingerprints under G.S. 58-33-48 shall
submit with the insurance producer license application the cost for the state
and national criminal history record fee that is set forth pursuant to G.S.
114-19.1(a); and
(5) All fingerprint impressions must be
suitable for use by the SBI to conduct a state criminal history record check
and for the Federal Bureau of Investigations (FBI) to conduct a national
criminal history record check. If the SBI deems the electronic fingerprints
are not suitable, the Commissioner shall notify and provide instructions to the
applicant to resubmit his fingerprints in the manner set forth in Subparagraph
(1) of this Paragraph within 30 days.
(c) The application of a resident insurance producer
required to submit fingerprints is not be complete until the Commissioner
receives the state and national criminal history record information. In
accordance with G.S. 58-33-30(a), the Commissioner shall not issue the license
of an insurance producer that does not satisfy the license application
requirements.
History Note: Authority G.S. 58-2-40; 58-33-30;
58-33-48;
Eff. October 1, 2010.
SECTION .0500 ‑ RENEWAL AND CANCELLATION OF LICENSES
11 NCAC 06A .0501 RENEWAL OF AGENT APPTS:
LICENSES/LIMITED reps
(a) Annually the Division shall notify each insurance
company and motor club company of dates and procedures for renewing agent appointments
and limited representative licenses. Companies shall be given at least 30
days' advance notice of the last date the Division shall process terminations.
(b) On the last date to submit terminations, the Division
shall cease processing all terminations and bill companies for renewals. All
appointments and licenses shall automatically be billed for the appointment
renewal unless the Division has received a termination request from the company
within the specified time.
(c) The Division shall send each company an invoice stating
the total amount of money due and a list of all appointees or licensees
associated with the total due. The Division shall make this invoice and a list
of all appointees or licensees associated with the total due available
electronically to each company. Companies shall remit the amount stated in the
invoice by electronic payment to the Commissioner or the Commissioner's
designee and shall pay all associated fees for electronic processing. Any
discrepancies claimed by companies shall be investigated only after full
payment is received.
(d) Upon receipt of the company payment, the Division shall
provide to the company an electronic list of all appointments and licenses
renewed.
(e) Appointments recorded and licenses issued prior to the
renewal date, but after the date specified by the Division as the last date to
process termination are valid until the following year.
(f) Failure of a company to pay any invoice by the due date
shall automatically result in the termination of all appointees or licensees of
that company. The Commissioner shall not issue any new appointments until all
outstanding invoices have been paid. Any company that has had appointments or
licensees cancelled by the Commissioner pursuant to this Rule shall not process
any new electronic appointments until all outstanding invoices have been paid.
When the outstanding invoices are paid, the company may re-appoint agents or
limited representatives and shall pay the appointment fees.
History Note: Authority G.S. 58-2-40; 58-2-250;
58-33-40(f); 58-33-56; 58-33-125(a); 58-33-125(h);
Eff. February 1, 1976;
Readopted Eff. June 12, 1978;
Amended Eff. October 1, 2010; February 1, 1996; October
1, 1990; February 1, 1989; July 1, 1986.
11 NCAC 06A .0502 RENEWAL OF BROKERS' LICENSES
11 NCAC 06A .0503 RENEWAL: SELF‑EMPLOYED ADJUSTER:
MOTOR VEHICLE DAMAGE APPR
History Note: Authority G.S. 58‑2‑40; 58‑33‑25(n);
58‑33‑30(f); 58‑33‑125;
Eff. February 1, 1976;
Readopted Eff. June 12, 1978;
Amended Eff. October 1, 1990; February 1, 1989;
Repealed Eff. April 1, 2003.
11 NCAC 06A .0504 FAILURE TO RENEW LICENSE
Failure to renew a broker, limited representative, adjuster
or motor vehicle damage appraiser license by March 31 by payment of the annual
renewal fee as specified in G.S. 58-33-125(a) shall result in automatic lapse of
the license on April 1 by the Division.
History Note: Authority G.S. 58-2-40; 58-33-26(m);
58-33-125(a);
Eff. February 1, 1976;
Readopted Eff. June 12, 1978;
Amended Eff. October 1, 2010; February 1, 1989.
11 NCAC 06A .0505 termination of appointments FOR
LIMITED REPS
All companies shall submit termination of appointments
through an electronic system provided by the Commissioner.
History Note: Authority G.S. 58-2-40; 58-2-250;
58-33-56(b);
Eff. June 12, 1978;
Amended Eff. October 1, 2010; October 1, 1990; February
1, 1989; July 1, 1986.
11 NCAC 06A .0506 CANCELLATION OF LICENSES ISSUED TO
INDIVIDUALS
(a) Any insurance producer, adjuster, viatical settlement
broker or surplus lines licensee desiring to cancel a license shall submit a
written request to the Division.
(b) Cancellation of a license automatically terminates all
appointments for the kind of insurance covered by the license.
History Note: Authority G.S. 58-2-40; 58-33-40(e);
Eff. February 1, 1989;
Amended Eff. October 1, 2010; April 1, 2003; October 1,
1990.
11 NCAC 06A .0507 TERMINATION OF AGENT APPOINTMENT
History Note: Authority G.S. 58‑33‑40(e);
Eff. February 1, 1989;
Repealed Eff. April 1, 2003.
11 NCAC 06A .0508 RENTAL CAR COMPANY LICENSE RENEWAL
History Note: Authority G.S. 58‑2‑40; 58‑33‑17;
58‑33‑25(n); 58‑33‑125;
Temporary Adoption Eff. October 3, 1991 for a period of 180 days to expire on March 30, 1992;
Eff. March 1, 1992;
Repealed Eff. April 1, 2003.
SECTION .0600 ‑ DENIAL OF LICENSE
11 NCAC 06A .0601 BASIS FOR DENIAL OF LICENSE
History Note: Authority G.S. 58‑2‑40; 58‑33‑45;
Eff. February 1, 1976;
Readopted Eff. June 12, 1978;
Amended Eff. October 1, 1990; February 1, 1989; July 1, 1986;
Repealed Eff. April 1, 2003.
11 NCAC 06A .0602 COURT RECORDS AND AFFIDAVITS REQUIRED
An individual who has been convicted of an offense specified
in G.S. 58-33-46(a)(6), shall submit to the Division the following information
with the application for licensure and examination:
(1) a copy of the entire court record including the
judgment, as well as a complete criminal history check;
(2) a copy of unconditional release or unconditional
discharge from the Post Release Supervision and Parole Commission, if
applicable, on the forms provided by the North Carolina Department of
Correction;
(3) if the applicant or licensee is currently employed
or expects to be employed by an insurer, agency, company or firm in the
business of insurance, the applicant or licensee shall submit a letter from the
employer or potential employer stating that the applicant or licensee has
disclosed to the employer information about the conviction;
(4) a notarized affidavit from the applicant about the
conviction; and
(5) if applicable, a statement from the applicant's
probation officer.
History Note: Authority G.S. 58‑2‑40;
58-33-46(6);
Eff. February 1, 1976;
Readopted Eff. June 12, 1978;
Amended Eff. April 1, 2003; October 1, 1990; April 1, 1989; July 1, 1986.
11 NCAC 06A .0603 EVALUATION OF RECORDS AND AFFIDAVITS
In its evaluation of court records and affidavits, the
Division shall consider all information and as many facts as are presented to
it, including, but not limited to:
(1) time elapsed since last offense or conviction;
(2) seriousness of the offense or alleged offense;
(3) extenuating circumstances, particularly in the case
of juvenile offenses;
(4) statements of character witnesses, including the
notarized affidavits which are submitted by previous employers.
History Note: Authority G.S. 58‑33‑45;
Eff. February 1, 1976;
Readopted Eff. June 12, 1978;
Amended Eff. February 1, 1989.
11 NCAC 06A .0604 PERSONAL INTERVIEWS
History Note: Authority G.S. 58‑33‑45;
Eff. February 1, 1976;
Readopted Eff. June 12, 1978;
Amended Eff. February 1, 1989;
Repealed Eff. February 1, 2008.
11 NCAC 06A .0605 NOTIFICATION OF DENIAL OF LICENSE
History Note: Authority G.S. 58‑9;
Eff. February 1, 1976;
Readopted Eff. June 12, 1978;
Repealed Eff. February 1, 1989.
SECTION .0700 ‑ PRELICENSING EDUCATION
11 NCAC 06A .0701 GENERAL REQUIREMENTS
(a) This Section applies to individuals attempting to
obtain a resident license to solicit property, casualty, personal lines, life,
accident and health, or sickness insurance in North Carolina except as
specifically exempted by Paragraphs (b) and (c) of this Rule.
(b) Individuals who are exempt from the requirement for a
written examination pursuant to G.S. 58-33-35 are exempt from prelicensing
education requirements.
(c) Individuals holding one or more of the following
insurance designations are exempt from prelicensing education requirements:
(1) Accident and health or sickness:
(A) Registered Health Underwriter (RHU);
(B) Certified Employee Benefits Specialist (CEBS);
(C) Registered Employee Benefits Consultant (REBC); and
(D) Health Insurance Associate (HIA).
(2) Life:
(A) Certified Insurance Counselor (CIC);
(B) Certified Employee Benefits Specialist (CEBS); and
(C) Certified Financial Planner (CFP).
(3) Property:
(A) Accredited Advisor in Insurance (AAI);
(B) Associate in Risk Management (ARM); and
(C) Certified Insurance Counselor (CIC).
(4) Casualty:
(A) Accredited Advisor in Insurance (AAI);
(B) Associate in Risk Management (ARM); and
(C) Certified Insurance Counselor (CIC).
(5) Personal lines:
(A) Accredited Advisor in Insurance (AAI);
(B) Associate in Risk Management (ARM); and
(C) Certified Insurance Counselor (CIC).
(6) Property, casualty, personal lines, life,
accident and health or sickness:
(A) Holder of degree in insurance (associate or
bachelors);
(B) An individual whose license in another state or
jurisdiction for the same kind of insurance as that for which applied has been
cancelled within 60 days of the Division's receipt of the letter of clearance
and the individual's request for waiver of prelicensing education; and
(C) An individual who is licensed in another state or
jurisdiction for the same kind of insurance as that for which applied.
(d) If an applicant exempted from prelicensing education
under the provisions of Paragraph (c) of this Rule fails the examination, the
applicant must successfully meet North Carolina's mandatory prelicensing
education requirement prior to retaking the examination.
(e) In this Section, unless otherwise noted the following
definitions apply:
(1) "Classroom School" means an
entity that provides prelicensing education sponsored by a company, agency,
association or educational institution by an instructor utilizing a teaching
curriculum based on the outline.
(2) "Correspondence Course" means
home, self, individual, Internet or correspondence study utilizing programmed
text instructions.
(3) "Correspondence School" means an
entity that provides prelicensing education sponsored by a company, agency,
association or educational institution through completion of a correspondence
course that has been approved by the Commissioner, with students individually
supervised by an approved instructor.
(4) "Instructional Hour" means a 50‑minute
hour.
(5) "Instructor" means an individual
who meets the qualifications required by Rule .0705 of this Section:
(A) to instruct in a classroom school, who is
responsible for preparation and presentation of lesson plans to assure that the
outline is taught to that school's students, and who prepares a final course
examination; and
(B) in a correspondence school to assist and supervise
students in the completion of an approved correspondence or Internet course.
(6) "Outline" means an
instructor/examination content outline prepared and published by the Department
in the "State of North Carolina Insurance Licensure Examination Candidate
Guide".
(7) "Program Director" means the
individual associated with an approved classroom or correspondence school who
is responsible for the administration of that school according to Rule .0702(1)
of this Section.
History Note: Authority G.S. 58‑2‑40; 58‑33‑30(d);
58‑33‑35; 58-33-132;
Eff. February 1, 1989;
Amended Eff. April 1, 1996; October 1, 1990;
Amended Eff. February 1, 2008.
11 NCAC 06A .0702 PRELICENSING EDUCATION SCHOOLS
(a) This Rule applies to all classroom and correspondence
schools offering a prelicensing course prescribed by G.S. 58‑33‑30.
All schools desiring to conduct a prelicensing course shall be approved by the
Commissioner before commencement of the courses.
(b) A school seeking approval to conduct a prelicensing
course shall make written application to the Commissioner.
(c) The Division shall approve a school when:
(1) the school has submitted all information
required by the Rules in this Section;
(2) the course to be conducted complies with
Rule .0704 of this Section;
(3) the program director has been approved by
the Commissioner in accordance with Rule .0703 of this Section; and
(4) the school has a qualified instructor to
teach each kind of insurance for which it is seeking approval.
(d) The Commissioner shall deny, revoke, suspend, or
terminate approval of any school upon finding that:
(1) the school has refused or failed to comply
with any of the provisions of this Section;
(2) any school official or instructor has
obtained or used, or attempted to obtain or use, in any manner or form, licensing
examination questions;
(3) the school's students have a first-time licensing
examination performance record that is below the average examination
performance record of all first‑time examination candidates;
(4) the school has not conducted at least one
prelicensing course during any 12‑month period; or
(5) the school has refused or failed to submit
information or properly completed forms prescribed by the Commissioner.
(e) In all proceedings to deny, revoke, suspend, or
terminate approval of a school, the provisions of Chapter 150B of the General
Statutes are applicable.
(f) When a school's approval is discontinued, the procedure
for reinstatement is to apply as a new school, with a statement of the reasons
that the school is now eligible for reconsideration.
(g) If a school's approval has been suspended upon the
Commissioner's finding that the school has not conducted at least one
prelicensing course during any 12‑month period that school may reapply
after one year of suspension. At such time, the Commissioner shall give the
school six months to conduct at least one prelicensing course.
(h) A school shall notify the Commissioner of any change of
course location or schedule information no fewer than five business days before
the change. Notification of the changes shall be in writing.
(i) An approved school that intends to terminate its
prelicensing program shall notify the Commissioner in writing.
(j) A school shall notify the Commissioner in writing of a
change of textbook.
(k) An approved school may use, for advertising or
promotional purposes, examination performance data made available to the school
by the Commissioner, provided that any data disclosed by the school shall be
accurate, shall be presented in a manner that is not misleading, and shall:
(1) be limited to the annual examination
performance data for the particular school and for all examination candidates
in the State; and
(2) include the type of examination, the time
period covered, the number of first‑time candidates examined, and either
the number or percentage of first‑time candidates passing the examination.
(l) A classroom school's facilities and equipment shall
have been found by appropriate local code inspectors to be in compliance with
all applicable local, State and federal laws and regulations regarding safety,
sanitation, and access by persons with disabilities.
(m) The school shall designate one person as the program
director. The program director shall be responsible for administrative matters
such as recruiting, evaluating and certifying the qualifications of
instructors, developing programs, scheduling of classes, advertising,
maintaining facilities and equipment, recordkeeping and supervising of the
prelicensing program.
(n) A school shall publish and provide to all prelicensing
students before enrollment a publication of that school that contains the
following information:
(1) name of school and publication date;
(2) name of sponsor;
(3) all associated costs; and
(4) an outline or description of all
prelicensing courses offered.
(o) With the exception of correspondence or Internet courses,
a school shall file with the Commissioner information giving exact dates,
times, locations, and instructor name for each scheduled prelicensing course.
This information may be submitted either at the beginning of each quarter or
semester or no later than one week before the first class meeting of each
prelicensing course.
(p) Classroom schools shall retain the following material
on file at one location for at least three years:
(1) class schedules;
(2) advertisements;
(3) bulletins, catalogues, and other official
publications;
(4) grade reports, showing a numeric grade for
each student;
(5) attendance records;
(6) master copy of each final course
examination, indicating the answer key, the school name, course location,
course dates and name of instructor;
(7) list of student names and their license
identifying numbers for each course, and the name of the instructor; and
(8) student registration information.
All files shall be made available to the Commissioner upon
request.
(q) Correspondence and Internet schools shall retain the
following material on file at one location for at least three years:
(1) advertisements;
(2) bulletins, catalogues and other official
publications;
(3) grade reports;
(4) list of student names and their license
identifying numbers for each course, and the name of the instructor;
(5) student registration information that shall
be obtained prior to the distribution of course material; and
(6) student records to validate the integrity
of the security measures utilized by the provider.
All files shall be made available to the Commissioner upon
request.
(r) In the event of illness, injury or death of an
instructor, the program director may use a qualified instructor to complete a
course.
History Note: Authority G.S. 58‑2‑40; 58‑33‑30(d);
58-33-132;
Eff. February 1, 1989;
Amended Eff. February 1, 2008; April 1, 2003; April 1,
1996; November 1, 1990.
11 NCAC 06A .0703 PROGRAM DIRECTORS
(a) All program directors shall be approved by the
Commissioner in accordance with the provisions of this Section.
(b) A person desiring approval as a program director shall
make written application to the Commissioner upon a form prescribed by the
Commissioner.
(c) Applications must be endorsed by the president/chief
operating officer of the sponsoring educational institution, company, agency or
association. If the employing school is not currently approved by the
Commissioner, an application for school approval shall be submitted along with
the application for program director approval.
(d) The Commissioner shall approve an applicant as a
program director upon finding that the applicant is recommended by the
president/chief operating officer of the sponsoring educational institution,
company, agency or association; has submitted all information required by the
Commissioner; possesses good character and reputation; and:
(1) Holds a baccalaureate or higher degree and
has at least two years of experience as an instructor of insurance or as an
educational administrator;
(2) Holds a baccalaureate or higher degree and
has at least six years of experience in the insurance industry with a minimum
of two years of experience in insurance management;
(3) Is a full‑time college or faculty
member who regularly teaches risk management or insurance courses; or
(4) Has education and experience that are found
by the Commissioner to be equivalent to the qualifications described in
Subparagraphs (d)(1) and (d)(2) of this Rule.
(e) Program director approval shall be valid for an
indefinite period, subject to future changes in laws or regulations regarding
approval of program directors.
(f) The Commissioner shall deny, revoke, or suspend the
approval of any program director upon finding that:
(1) The program director fails to meet the
criteria for approval provided by this Rule;
(2) The program director has failed to comply
with any provisions of this Section;
(3) The program director's employment has been
terminated by any sponsoring educational institution/company;
(4) The program director provided false
information to the Commissioner when making application for approval;
(5) The program director has at any time had an
insurance license denied, suspended or revoked by the North Carolina Department
of Insurance or any other insurance department, or has ever been required to
return a license while under investigation; or
(6) The program director has obtained or used,
or attempted to obtain or use, in any manner or form, examination questions.
(g) In all proceedings to deny, revoke, or suspend
approval, the provisions of Chapter 150B of the General Statutes shall be
applicable.
(h) When a program director's approval is discontinued, the
procedure for reinstatement is to apply as a new program director, with a
statement of the reasons that he is now eligible for reconsideration. The
Commissioner may require an investigation before new approval is granted.
(i) An approved program director shall inform the
Commissioner of any change in program affiliation by filing an application for
program director approval prior to directing a new program.
(j) The program director is responsible for the actions of
the approved school's instructors.
History Note: Authority G.S. 58‑2‑40; 58‑33‑30(d);
58-33-132;
Eff. February 1, 1989;
Amended Eff. February 1, 2008; October 1, 1990.
11 NCAC 06A .0704 COURSES
(a) This Rule establishes minimum standards for property,
casualty, personal lines, life, accident and health or sickness and Medicare
supplement, and long term care insurance prelicensing courses required under G.S.
58‑33‑30.
(b) Insurance prelicensing programs shall comprise courses
in the following subjects:
(1) Accident and health or sickness;
(2) Casualty;
(3) Life;
(4) Medicare supplement insurance and long-term
care insurance;
(5) Personal lines; and
(6) Property.
(c) A school shall not offer a property, casualty, personal
lines, life, accident and health or sickness course comprising fewer than 20
hours or a Medicare supplement and long term care course comprising fewer than
10 hours.
(d) The following requirements are course standards:
(1) All courses shall consist of instruction in
the subject areas described in G.S. 58-33-30(d)(2) and 58-33-30(d)(3).
(2) Courses may also include coverage of
related subject areas not prescribed by the Commissioner; however, such courses
must provide additional class time, above the minimum requirement stated in
Paragraph (c) of this Rule, for the coverage of such subject areas.
(3) Prelicensing courses shall be for
instructional purposes only and not for promoting the interests of or recruiting
employees for any particular insurance agency or company.
(4) Schools shall establish and enforce
academic standards for course completion that assure that students receiving a
passing grade possess knowledge and understanding of the subject areas
prescribed for the course. In any course for which college credit is awarded,
the passing grade for such course shall be the same as the grade that is
considered passing under the school's uniform grading system.
(5) Schools shall conduct a final comprehensive
course examination that covers all subject areas prescribed by the Commissioner
for each course. Schools may allow a student to make up a missed examination
or to retake a failed examination in accordance with policies adopted by the
school. No final examination shall be given until a student has completed the
instructional requirement.
(6) Students shall attend a minimum of 20 hours
of property, casualty, personal lines, life, accident and health or sickness
instruction or a minimum of 10 hours of Medicare supplement and long term care
instruction. Time set aside for breaks, pop‑tests, quizzes, the final
comprehensive course examination and other non‑instructional activities
shall not count toward the minimum instructional requirement. If a property,
casualty, personal lines, life, accident and health or sickness course is
scheduled for 25 or more instructional hours, a student shall attend at least
80 percent of the total hours offered by the course.
(e) The following requirements shall be met for scheduling
purposes:
(1) Class meetings or correspondence courses
shall be limited to a maximum of eight hours of instruction in any given day.
(2) Classroom courses shall have fixed
beginning and ending dates and may not be conducted on an open‑entry/open‑exit
basis.
(3) Correspondence or Internet courses shall
not have fixed beginning and ending dates and shall be conducted on an open‑entry
basis.
(f) The following shall apply to the use of text books:
(1) Choice of classroom course text is at the
discretion of each school.
(2) Text books used in correspondence or
Internet courses shall be approved by the Commissioner before use. No text
book used in a correspondence course shall be approved unless it contains
instruction in the subject areas described in G.S. 58-33-30(d)(2) and
58-33-30(d)(3).
(g) All prelicensing classroom school courses shall be
taught by instructors who meet the qualifications described in Rule .0705 of
this Section.
(h) All prelicensing correspondence courses shall be monitored
by instructors who meet the qualifications described in Rule .0705 of this
Section. An instructor shall be designated for each correspondence or Internet
course student.
(i) The following certification of course completion
procedures shall apply:
(1) Schools shall validate each student who
successfully completes a prelicensing course with an Examination Admission
Ticket/Certificate of Course Completion. The Examination Admission
Ticket/Certificate of Course Completion shall not be validated for a student
prior to completion of all course requirements and the passing of the course's
comprehensive final examination.
(2) An Examination Admission Ticket/Certificate
of Course Completion shall be validated for each course successfully completed
by a student. An Examination Admission Ticket/Certificate of Course Completion
presented at the examination site that indicates completion of more than one
course shall be invalid.
(3) An Examination Admission Ticket/Certificate
of Course Completion shall be valid for access to the examination for 90 days or
a maximum of five examination attempts, whichever occurs first. If an
applicant for a license does not successfully pass the examination within 90
days or five examination attempts in the 90-day period, the applicant shall
again meet the prelicensing education requirement to be eligible for the
examination.
History Note: Authority G.S. 58‑2‑40; 58‑33‑30(d);
58-33-132;
Eff. February 1, 1989;
Amended Eff. February 1, 2008; April 1, 1996; October 1,
1990.
11 NCAC 06A .0705 INSTRUCTORS
(a) Each instructor shall have the following qualifications
which shall be verified by the instructor's prelicensing education school:
(1) Accident and health or sickness; Medicare
supplement insurance and long-term care insurance:
(A) Registered Health Underwriter (RHU);
(B) Certified Employee Benefits Specialist (CEBS);
(C) Registered Employee Benefits Consultant (REBC);
(D) Health Insurance Associate (HIA);
(E) Five years of full-time experience as an employee,
agent, or broker interpreting or explaining policies covering accident and
health or sickness insurance, Medicare supplement insurance or long term care
insurance;
(F) Holds an associate degree or bachelor's degree in
insurance; or
(G) Has education and experience that are found by the
Commissioner to be equivalent to the qualifications described in Rule
.0703(d)(1) and (d)(2) of this Section.
(2) Life insurance and annuities:
(A) Chartered Life Underwriter (CLU);
(B) Chartered Financial Consultant (ChFC);
(C) Fellow Life Management Institute (FLMI);
(D) Life Underwriter Training Council Fellow (LUTCF);
(E) Certified Employee Benefits Specialist (CEBS);
(F) Certified Financial Planner (CFP):
(G) Five years of full-time experience as an employee,
agent, or broker interpreting or explaining life insurance policies, or
annuities;
(H) Holds an associate degree or bachelor's degree in
insurance; or
(I) Has education and experience that are found by the
Commissioner to be equivalent to the qualifications described in Rule
.0703(d)(1) and (d)(2) of this Section.
(3) Property insurance, casualty insurance, and
personal lines:
(A) Chartered Property and Casualty Underwriter (CPCU);
(B) Accredited Advisor in Insurance (AAI);
(C) Associate in Risk Management (ARM);
(D) Certified Insurance Counselor (CIC);
(E) Five years of full-time experience as an employee,
agent, or broker interpreting or explaining property insurance, casualty
insurance, or personal lines policies;
(F) Holds an associate degree or bachelor's degree in
insurance; or
(G) Has education and experience that are found by the
Commissioner to be equivalent to the qualifications described in Rule
.0703(d)(1) and (d)(2) of this Section.
(b) An applicant for instructor shall be determined
qualified by the prelicensing education school for each course taught in the
prelicensing curriculum.
(c) The Commissioner shall deny, revoke, suspend, or
terminate the approval of an instructor upon finding that:
(1) The instructor fails to meet the criteria
for approval provided by this Rule;
(2) The instructor has failed to comply with statutes
or rules regarding prelicensing courses or schools;
(3) The instructor's employment has been
terminated by any approved school on the grounds of incompetence or failure to
comply with institutional policies and procedures;
(4) The instructor provided false information
to the Commissioner;
(5) The instructor has at any time had an
insurance license denied, suspended, revoked, or terminated, by the
Commissioner or any other state insurance regulator, or has ever been required
to return a license while under investigation;
(6) The instructor has obtained or used, or
attempted to obtain or use, in any manner or form, examination questions; or
(7) The instructor's students have a first-time
licensing examination performance record that is below the average examination
performance record of all first-time examination candidates.
(d) In all proceedings to deny, revoke, suspend, or
terminate approval of an instructor, the provisions of Chapter 150B of the
General Statutes shall be applicable.
(e) When an instructor's approval is discontinued, the
procedure for reinstatement shall be to apply as a new instructor, with a
statement of reasons that he is now eligible for reconsideration. The
Commissioner may require an investigation before new approval is granted.
(f) Instructors shall meet the requirements in 11 NCAC 06A .0808.
History Note: Authority G.S. 58‑2‑40; 58‑33‑30(d);
58-33-132;
Eff. February 1, 1989;
Amended Eff. February 1, 2008; April 1, 1996; October 1,
1990.
11 NCAC 06A .0706 PROCTORS
History Note: Authority G.S. 58‑615(d);
Eff. February 1, 1989;
Repealed Eff. October 1, 1990.
SECTION .0800 ‑ CONTINUING EDUCATION
11 NCAC 06A .0801 DEFINITIONS
As used in this Section:
(1) "Biennial compliance period" means the
24-month period during which an agent or adjuster shall comply with continuing
education requirements.
(2) "Cluster of courses" means a number of
courses, each of which is less than 100 minutes in length, but altogether 100
minutes or more in length, that are offered within one state or national
program or convention.
(3) "Compliance year" means the second year
of the biennial compliance period.
(4) "Continuing Education Administrator" or "Administrator"
means the entity with which the Commissioner contracts for continuing education
administration, including the approval of providers and courses and the
retention of ICEC records for licensees.
(5) "Course" means a continuing education
course directly related to insurance principles and practices or a course
designed and approved specifically for licensees; but does not mean a business
course of a general nature or an insurance marketing or sales course. Courses
shall be for instructional purposes only and not for promoting the interests of
or recruiting employees for any particular insurance agency or company.
(6) "Disinterested third party" means a
person not concerned, with respect to possible gain or loss, in the result of a
pending course final examination.
(7) "Distance learning" means an educational
program in which the licensee and the instructor are in different physical
locations and interact with each other through various methods of
telecommunication.
(8) "Ethics course" means a continuing
education course that deals with usage and customs among members of the
insurance profession involving their moral and professional duties toward one
another, toward clients, toward insureds, and toward insurers.
(9) "Insurance continuing education credit"
or "ICEC" means a value assigned to a course by the Commissioner
after review and approval of a course information. This term means the same as
"credit hour" as used in G.S. 58‑33‑130.
(10) "Instructor" means an individual who
teaches, lectures, leads, or otherwise instructs a course.
(11) "Licensee" means a licensed adjuster, a
licensed broker, or a licensed agent with any of the following lines of
authority: property, casualty, personal lines, life, or accident and health or
sickness.
(12) "Long-Term Care Partnership Education"
means a continuing education course related to long-term care insurance,
long-term care services and qualified state long-term care insurance partnership
programs which includes:
(a) State and federal regulations and
requirements relating to long-term care partnership policies;
(b) the relationship between qualified state
long-term care insurance partnership programs and other public and private
coverage of long-term care services, including Medicaid:
(c) available long-term care services and
providers;
(d) changes or improvements in long-term care
services or providers;
(e) alternatives to the purchase of private
long-term care insurance;
(f) the effect of inflation on long-term care
partnership policy benefits and the importance of inflation protection; and
(g) consumer suitability standards and
guidelines for long-term care partnership policies.
(13) Qualified Policy" has the same meaning as in
G.S. 58-55-55(6) and includes a certificate issued under a group policy as
specified in G.S. 58-55-60.
(14) "Supervised examination" means a timed,
closed book examination that is monitored and graded by a disinterested third
party.
(15) "Supervised individual study" means
learning through the use of audio tapes, video tapes, computer programs,
programmed learning courses, and other types of electronic media that are
completed in the presence of an instructor.
History Note: Authority G.S. 58-2-40; 58-33-130; 58-55-55;
58-55-60; 58-55-65; 58-55-75;
Temporary Adoption Eff. June 22, 1990, for a period of
180 days to expire on December 19, 1990;
ARRC Objection Lodged July 19, 1990;
Eff. December 1, 1990;
Amended Eff. March 1, 2011; February 1, 2008; February 1,
1995; June 1, 1992.
11 NCAC 06A .0802 LICENSEE REQUIREMENTS
(a) Each person holding a life, accident and health or
sickness, property, casualty, personal lines, or adjuster license shall obtain
24 ICECs during each biennial compliance period. Each person holding one or
more life, accident and health or sickness, property, casualty, personal lines,
variable life and variable annuity products or adjuster license shall complete
an ethics course or courses within two years after January 1, 2008, and every
biennial compliance period thereafter as defined in this Section. The course
or courses shall comprise three ICECs.
(b) Each person holding one or more property, personal
lines, or adjuster license, shall complete a continuing education course or
courses on flood insurance and the National Flood Insurance Program, or any
successor programs, within the first biennial compliance period after January
1, 2008, and every other biennial compliance period thereafter. The course or
courses shall comprise three ICECs.
(c) Each licensee shall, before the end of that licensee's
biennial compliance year, furnish evidence as set forth in this Section that
the continuing education requirements have been satisfied.
(d) An instructor shall receive the maximum ICECs awarded
to a student for the course.
(e) Licensees shall not receive ICECs for the same course
more often than one time in any biennial compliance period.
(f) Licensees shall receive ICECs for a course only for the
biennial compliance period in which the course is completed. Any course
requiring an examination shall not be considered completed until the licensee
passes the examination.
(g) Licensees shall maintain records of all ICECs for five
years after obtaining those ICECs, which records shall be available for
inspection by the Commissioner.
(h) Nonresident licensees who meet continuing education
requirements in their home states meet the continuing education requirements of
this Section. Nonresident adjusters who qualify for licensure by passing the
North Carolina adjuster examination pursuant to G.S. 58-33-30(h)(2)a shall meet
the same continuing education requirements as a resident adjuster including
mandatory flood and ethics courses. Nonresident adjusters who qualify for
licensure by passing an adjuster examination in another state pursuant to G.S.
58-33-30(h)(2)b and are in good standing in that state shall be credited with
having met the same continuing education requirements as resident adjusters,
including mandatory flood and ethics courses.
(i) Only a licensed insurance producer who is unable to
comply with continuing education requirements due to military service, or
long-term medical disability may request a waiver for continuing education requirements.
A long-term medical disability means that it is certified on an annual basis by
an attending physician to the licensee. The Commissioner shall grant an
exemption from Continuing Education requirements for up to one year if the
producer submits the following:
(1) Deployment orders from the United States
Department of Defense; or
(2) A notarized statement from a licensed
physician stating the producer is unable to do the work he is licensed to do.
(j) A licensee who was granted an exemption from the
requirements of this Section prior to October 1, 2010 continues to be exempt
from continuing education requirements for as long as the licensee certifies to
the Commissioner that he:
(1) is age 65 or older;
(2) has been continuously licensed in the line
of insurance for at least 25 years; and
(3) either:
(A) holds a professional designation specified in 11
NCAC 06A .0803; or
(B) certifies to the Commissioner annually that the
licensee is an inactive agent who neither solicits applications for insurance
nor takes part in the day to day operation of an agency.
(k) Courses completed before the issue date of a new
license do not meet the requirements of this Section for that new license.
(l) No credit shall be given for courses taken before they
have been approved by the Commissioner.
(m) Each person with an even numbered birth year shall meet
continuing education requirements in an even numbered compliance year. Each
person with an odd numbered birth year shall meet continuing education
requirements in an odd numbered compliance year. The licensee shall complete
24 hours of continuing education by the last day of the licensee's birth month
in the compliance year.
(n) An existing licensee requiring continuing education is
an individual who holds any of the following licenses on or before December 31,
2007: life and health, property and liability, personal lines, or adjuster.
The licensee's birth year determines if an individual must satisfy continuing
education requirements in an even-numbered or odd-numbered year. (Example: 1960
is an even-numbered year; 1961 is an odd-numbered year.) The licensee's birth
month determines the month that continuing education is due. (Example: An
individual born in October would need to complete 24 hours of continuing
education by the end of October in the licensee's compliance year.) The number
of ICECs required by this Rule is prorated based on one ICEC per month, up to
24 months. This conversion shall be completed within four years. (Example:
An individual with a birth date of February 16, 1960, would have the following
two compliance periods during the continuing education conversion: 1st – two
ICECs by the end of February 2008; the 2nd – 24 ICECs by the end of February
2010. An individual with a birth date of April 4, 1957, would have the
following two compliance periods during the continuing education conversion:
1st – 16 ICECs by the end of April 2009; the 2nd – 24 ICECs by the end of April
2011.) The chart below reflects the number of hours an existing licensee
requiring continuing education must have during the four-year conversion.
(o) A new licensee requiring continuing education is an
individual who is issued any of the following licenses on or after January 1,
2008: life, accident and health or sickness, property, casualty, personal
lines or adjuster. The licensee's birth year determines if an individual must
satisfy continuing education requirements in an even-numbered or odd-numbered
year. (Example: 1960 is an even-numbered year; 1961 is an odd-numbered year.)
The licensee's birth month determines the month that continuing education is
due. (Examples: An individual born in October would need to complete 24 hours
of continuing education by the end of October in the licensee's compliance year.
An individual with a birth date of December 1, 1960, licensed in 2008, is
required to meet 24 hours of continuing education by December 31, 2010. An
individual with a birth date of October 1, 1957, licensed in 2008, is required
to meet 24 hours of continuing education by October 31, 2011.) The chart below
shows the first deadline by which a new licensee would be required to complete
24 hours of continuing education.
(p) A member of a professional insurance association may
receive no more than two ICECs during the biennial compliance period based
solely on membership in the association. The professional insurance
association shall be approved as a continuing education provider, shall have
been in existence for at least five years, and shall have been formed for
purposes other than providing continuing education. The professional insurance
association shall:
(1) Provide the Commissioner or the
Administrator with the association's Articles of Incorporation on file with the
N.C. Secretary of State;
(2) Certify to the Commissioner or
Administrator that the licensee's membership is active during the biennial
compliance period;
(3) Certify to the Commissioner or
Administrator that the licensee attended 50 percent of the regular meetings;
(4) Certify to the Commissioner or
Administrator that the licensee attended a statewide or intrastate regional
educational meeting on an annual basis, where the regional meeting covered an
area of at least 25 counties of the State; and
(5) Pay the one dollar ($1.00) per ICEC to the
Commissioner or Administrator.
History Note: Authority G.S. 58-2-40; 58-2-185;
58-2-195; 58-33-130; 58-33-133;
Temporary Adoption Eff. June 22, 1990, for a period of
180 days to expire on December 19, 1990;
ARRC Objection Lodged July 19, 1990;
Eff. December 1, 1990;
Temporary Amendment Eff. October 3, 1991 for a period of
180 days to expire on March 30, 1992;
Amended Eff. June 1, 2011; October 1, 2010; February 1,
2008; January 1, 2007; February 1, 1995; August 1, 1994; February 1, 1994;
January 1, 1993.
11 NCAC 06A .0803 COURSES SPECIFICALLY APPROVED
(a) Courses that are necessary to obtain the following
nationally recognized designations are approved for 18 ICECs upon successful
completion of the national examination for each part:
(1) Accredited Advisor in Insurance (AAI);
(2) Associate in Claims (AIC);
(3) Associate in Loss Control Management
(ALCM);
(4) Associate in Risk Management (ARM);
(5) Associate in Underwriting (AU);
(6) Certified Employees Benefit Specialist
(CEBS);
(7) Chartered Financial Consultant (ChFC);
(8) Chartered Life Underwriter (CLU);
(9) Chartered Property and Casualty Underwriter
(CPCU);
(10) Fellow Life Management Institute (FLMI);
(11) General Insurance (INS);
(12) Life Underwriter Training Council Fellow, 26
week (LUTCF);
(13) Certified Financial Planner (CFP).
(b) Courses that are necessary to obtain the following
nationally recognized designations are approved for an amount of ICECs to be
determined by the Commissioner under this Section.
(1) Agency Management Training Course Graduate;
(2) Certified Insurance Counselor (CIC);
(3) Certified Insurance Service Representative
(CISR);
(4) Certified Professional Service
Representative (CPSR);
(5) Fraternal Insurance Counselor (FIC);
(6) Health Insurance Associate (HIA);
(7) Life Underwriter Training Council Fellow,
13 weeks (LUTCF);
(8) Registered Health Underwriter (RHU).
(c) Courses that are taught by a college or university that
is accredited by the Southern Association of Colleges and Schools or by an
accreditation agency recognized by the U.S. Department of Education are
approved for a number of ICECs to be determined by the Commissioner under this
Section.
(d) Any course prepared by the Commissioner is approved as
a component of each resident licensee's continuing education requirement for a
number of ICECs to be determined by the Commissioner under this Section.
History Note: Authority G.S. 58‑2‑40; 58‑33‑130;
Temporary Adoption Eff. June 22, 1990, for a period of
180 days to expire on December 19, 1990;
ARRC Objection Lodged July 19, 1990;
Eff. December 1, 1990;
Amended Eff. January 1, 2007; February 1, 1995; June 1,
1992.
11 NCAC 06A .0804 CARRYOVER CREDIT
Only whole ICECs may be carried over from one biennial
compliance period to the next biennial compliance period. There is no limit on
the number of ICECs that can be carried over.
History Note: Authority G.S. 58‑2‑40; 58‑33‑130;
Temporary Adoption Eff. June 22, 1990, for a period of
180 days to expire on December 19, 1990;
ARRC Objection Lodged July 19, 1990;
Eff. December 1, 1990;
Temporary Amendment Eff. October 3, 1991 for a period of
180 days to expire on March 30, 1992;
Amended Eff. February 1, 2008; February 1, 1995; June 1,
1992; March 1, 1992.
11 NCAC 06A .0805 CALCULATION OF ICECS
The following standards are used to evaluate courses
submitted for continuing education approval:
(1) Programs requiring meeting or classroom attendance:
(a) Courses or clusters of courses of less than
50 minutes shall not be evaluated for continuing education ICECs.
(b) Courses shall not be approved for less than
one ICEC.
(c) One ICEC shall be awarded for each 50
minutes of instruction unless the Commissioner assigns fewer ICECs based upon
the evaluation of the submitted course materials. Courses shall only be
approved for whole ICECs.
(d) Course providers shall monitor participants
for attendance and attention.
(2) Independent study programs:
(a) Independent study programs qualify for
continuing education only when there is a supervised examination. No
examination administered or graded by insurance company personnel for its own
employees is considered to be administered by a disinterested third party. The
examination supervisor shall submit to the provider a sworn affidavit that
certifies the authenticity of the examination. The provider shall retain the
affidavit and examination records.
(b) Each course shall be assigned ICECs, which
shall be awarded upon the passing of the supervised examination.
(3) Distance Learning Programs:
(a) Distance learning qualifies only when an
instructor is available to respond to questions and to maintain attendance
records.
(b) Any organization sponsoring a teleconference
shall have an on‑site instructor.
(4) Internet programs qualify only when there is a
secure examination required at the end of the licensee's study of the course
material and when periodic security measures have been used throughout the
course material before the final examination.
(5) Webinar courses qualify only when there is a method
of monitoring attendance, by way of a random question and answer segment
throughout the course, or a monitor at each location. Examinations are not
required in Webinar courses.
History Note: Authority G.S. 58‑2‑40; 58‑33‑130;
Temporary Adoption Eff. June 22, 1990, for a period of 180 days to expire on December 19, 1990;
ARRC Objection Lodged July 19, 1990;
Eff. December 1, 1990;
Amended Eff. February 1, 2008; April 1, 2003; February 1,
1995; June 1, 1992.
11 NCAC 06A .0806 ATTENDANCE
History Note: Authority G.S. 58-2-40; 58-33-130;
Temporary Adoption Eff. June 22, 1990, for a period of
180 days to expire on December 19, 1990;
ARRC Objection Lodged July 19, 1990;
Eff. December 1, 1990;
Amended Eff. January 1, 2007; February 1, 1995; June 1,
1992;
Repealed Eff. July 1, 2012.
11 NCAC 06A .0807 HARDSHIP
A licensee may request in writing an extension of time under
G.S. 58-33-130(c) during or before the last month of the licensee's compliance
year.
History Note: Authority G.S. 58‑2‑40; 58‑33‑130;
Temporary Adoption Eff. June 22, 1990, for a period of
180 days to expire on December 19, 1990; ARRC Objection Lodged July 19, 1990;
Eff. December 1, 1990;
Amended Eff. February 1, 2008; January 1, 2007; June 1,
1992.
11 NCAC 06A .0808 INSTRUCTOR QUALIFICATION
(a) Continuing education providers shall certify that
continuing education instructors meet the qualification requirements, which are
the same as those for instructors as provided in 11 NCAC 06A .0705(c), except
that the Commissioner may approve instructors possessing specific areas of
expertise to instruct courses comprising those areas of expertise.
(b) Insurance company trainers as instructors shall be full
time salaried employees of the insurance company sponsoring the course and
shall have as part of their full time responsibilities the duty to provider
insurance company training.
(c) College and university instructors may be full time or
adjunct faculty of the college or university, and shall be teaching a
curriculum course in his or her field of expertise.
(d) The Commissioner shall require applicants and current
instructors to submit to a personal interview, provide a video or audio tape, a
written history of courses taught or any other documentation that will verify
the applicant's qualifications to instruct approved insurance courses.
(e) Temporary instructor authority shall be given to each
qualified applicant. The instructor authority shall become permanent after six
months unless otherwise denied, suspended, terminated or revoked by the
Commissioner.
(f) As a condition to continued instructor qualification,
providers shall insure that each instructor teaches one prelicensing or
continuing education course each calendar year.
History Note: Authority G.S. 58-2-40; 58‑33‑130;
58-33-132;
Temporary Adoption Eff. June 22, 1990, for a period of
180 days to expire on December 19, 1990;
ARRC Objection Lodged July 19, 1990;
Eff. December 1, 1990;
Amended Eff. February 1, 2008; February 1, 1996.
11 nCAC 06A .0809 APPROVAL OF COURSES
(a) All providers of courses specifically approved under
Rule .0803 of this Section shall pay the fee prescribed in G.S. 58-33-133(b)
and shall provide to the Commissioner or Administrator copies of:
(1) program catalogs;
(2) course outlines; and
(3) advertising literature.
(b) All providers of courses not specifically approved
under Rule .0803 of this Section shall do the following:
(1) Any individual, school, insurance company,
insurance industry association, or other organization intending to provide
classes, seminars, or other forms of instruction as approved courses shall:
(A) apply on forms provided by the Commissioner or Administrator,
located on the N.C. Department of Insurance's website at
http://www.ncdoi.com/ASD/ASD_CE_Ins_Providers.aspx;
(B) pay the fee prescribed in G.S. 58-33-133(b);
(C) provide outlines of the subject matter to be covered;
and
(D) provide copies of handouts to be given.
(2) All providers of supervised individual
study programs shall file copies of:
(A) the study programs;
(B) the examination; and
(C) the Internet course security procedures.
(c) The Commissioner shall indicate the number of ICECs
that have been assigned to the approved course.
(d) If a course is not approved or disapproved by the
Commissioner or his designee within 60 days after receipt of all required
information, the course is deemed to be approved at the end of the 60-day
period.
(e) If a course approval application is denied by the
Commissioner or his designee, a written explanation of the reason for denial
shall be furnished to the provider.
(f) Course approval applications shall include the
following:
(1) a statement indicating for whom the course
is designed;
(2) the course objectives;
(3) the names and duties of all persons who
will be affiliated in an official capacity with the course;
(4) the course provider's tuition and fee
refund policy;
(5) an outline that shall include:
(A) a statement of whether there will be a written
examination, a written report, or a certification of attendance only;
(B) the method of presentation;
(C) a course content outline with instruction hours
assigned to the major topics; and
(D) the schedule of dates, beginning and ending times,
and places the course will be offered, along with the names of instructors for
each course session, submitted at least 30 days before any subsequent course offerings.
(6) a copy of the course completion
certificate;
(7) a course rating form;
(8) a course bibliography; and
(9) an electronic copy of the course content
and course examination for Internet courses.
(g) A provider may request that its materials be kept
confidential if they are of a proprietary nature.
(h) Courses awarded more than eight ICECs shall have an
examination in order for the licensee to get full credit.
(i) A provider may request an exemption to the examination
requirement in Paragraph (h) of this Rule when filing a long-term care
partnership continuing education course of eight hours.
(j) A provider shall not cancel a course unless the
provider gives written notification to all students on the roster and to the
Commissioner or Administrator at least five days before the date of the
course. This Paragraph does not apply to the cancellation of a course or class
because of inclement weather.
(k) A provider shall submit course attendance records
electronically to the Commissioner or Administrator within 15 business days
after course completion.
(l) An error on the licensee's record that is caused by the
provider in submitting the course attendance records shall be resolved by the
provider within 15 days after the discovery of the error by the provider.
History Note: Authority G.S. 58-2-40; 58-33-130;
58-33-132; 58-33-133;
Temporary Adoption Eff. June 22, 1990, for a period of
180 days to expire on December 19, 1990;
ARRC Objection Lodged July 19, 1990;
Eff. December 1, 1990;
Amended Eff. October 1, 2014; March 1, 2011; February 1,
2008; February 1, 1996; June 1, 1992.
11 NCAC 06A .0810 ADVERTISING
(a) Courses
shall not be advertised as approved for ICECs unless such approval has been
granted by the Commissioner in writing.
(b) When a
course has been approved for ICECs and is advertised as such, the advertisement
shall include:
(1) the
provider name, assigned provider number, course(s) title(s), assigned course
number course(s) date(s) and course location;
(2) the
number of approved ICECs;
(3) the
type of licensee for whom the course would be most applicable;
(4) all
fees and associated expenses; and
(5) course
rating.
(c)
Advertisements shall be complete, truthful, clear, and not deceptive or
misleading.
(d) The
Commissioner may withdraw his approval of any violator to provide or conduct
courses.
History Note: Filed as a Temporary Adoption Eff. June
22, 1990, for a period of 180 days to expire on
December 19, 1990;
ARRC Objection Lodged July 19, 1990;
Authority G.S. 58‑2‑40; 58‑33‑130;
58-33-132;
Eff. December 1, 1990;
Amended Eff. February 1, 1996; June 1, 1992.
11 NCAC 06A .0811 SANCTIONS FOR NONCOMPLIANCE
(a) If the license of any person lapses under G.S.
58-33-130(c), the license shall be reinstated when the person has completed the
continuing education requirements and paid an administrative fee of seventy-five
dollars ($75.00) within four months after the end of the person's previous
compliance year. If the person does not satisfy the requirements for licensure
reinstatement within four months after the end of the person's previous
compliance year, the person shall complete the appropriate prelicensing
education requirement and pass the appropriate licensing examination, at which
time the Commissioner shall reinstate the person's license.
(b) The Commissioner may suspend, revoke, or refuse to
renew a license for any of the following causes:
(1) Failing to respond to Department inquiries,
including continuing education audit requests, within seven calendar days after
the receipt of the inquiry or request.
(2) Requesting an extension or waiver under false
pretenses.
(3) Refusing to cooperate with Department
employees in an investigation or inquiry.
(c) The Commissioner may suspend, revoke, or refuse to
renew a course provider's, presenters, or instructor's authority to offer
courses for any of the following causes:
(1) Advertising that a course is approved
before the Commissioner has granted such approval in writing.
(2) Submitting a course outline with material
inaccuracies, either in length, presentation time, or topic content.
(3) Presenting or using unapproved material in
providing an approved course.
(4) Failing to conduct a course for the full
time specified in the approval request submitted to the Commissioner.
(5) Preparing and distributing certificates of
attendance or completion before the course has been approved.
(6) Issuing certificates of attendance or
completion before the completion of the course.
(7) Failing to issue certificates of attendance
or completion to any licensee who satisfactorily completes a course.
(8) Failing to notify the Commissioner in
writing of suspected or known violations of the North Carolina General Statutes
or Administrative Code within 30 days after suspecting or knowing about the
violations.
(9) Violating the North Carolina General
Statutes or Administrative Code.
(10) Failing to monitor attendance and attention
of attendees.
(11) Preparing and distributing fraudulent
certificates of attendance or completion.
(12) Failing to ensure that the licensee
completes the course hours approved by the Commissioner.
(d) Course providers and presenters are responsible for the
activities of persons conducting, supervising, instructing, proctoring,
monitoring, moderating, facilitating, or in any way responsible for the conduct
of any of the activities associated with the course.
(e) The Commissioner may require any one of the following
upon a finding of a violation of this Section:
(1) Refunding all course tuition and fees to
licensees.
(2) Providing licensees with a course to
replace the course that was found in violation.
(3) Withdrawal of approval of courses offered
by the provider, presenter, or instructor.
(f) Each year, the Commissioner shall verify each
nonresident licensee's record through the NAIC Producer Data Base to ensure
that the licensee has complied with the continuing education requirements in
the licensee's home state. If the license lapses under G.S. 58-33-32, the
Commissioner shall cancel the license.
History Note: Authority G.S. 58-2-40; 58-33-125(a); 58-33-130;
58-33-132; 58-33-133;
Temporary Adoption Eff. June 22, 1990, for a period of
180 days to expire on December 19, 1990;
ARRC Objection Lodged July 19, 1990;
Eff. December 1, 1990;
Amended Eff. October 1, 2010; February 1, 2008; January
1, 2007; June 1, 1992.
11 NCAC 06A .0812 SPECIAL CASES
(a) In addition to the courses in 11 NCAC 06A .0803, the
Commissioner shall prepare courses to address and remedy deficiencies in
licensee professional performance or conduct detected by the Commissioner
through analyses of consumer complaints or from Departmental audits or
examinations of insurance companies, licensees, or insurance agencies or
brokerages.
(b) The Commissioner shall require an individual licensee
to take and complete remedial or rehabilitative courses if the licensee has
committed any of the acts or omissions specified in G.S. 58-33-46.
(c) The Commissioner shall award 24 biennial continuing
professional educational credit hours based on government service relative to
insurance or finance, such as service as a legislator on a committee in the
General Assembly that hears insurance and finance matters.
History Note: Authority G.S. 58-2-40; 58-33-46;
58-33-130; 58-33-130(a)(5);
Eff. August 1, 1995;
Amended Eff. October 1, 2010.
11 NCAC 06A .0813 ISSUANCE/CONTINUATION OF PROVIDER
APPROVAL
(a) Any individual or entity intending to provide classes,
seminars, or other forms of instruction as approved courses shall submit:
(1) an application prescribed by the
Commissioner for provider approval; and
(2) a course approval application in accordance
with Rule .0809 of this Section.
(b) The Commissioner or the Administrator shall approve or
deny the provider and course approval application.
(c) Any provider approval that is denied shall be furnished
a written explanation for the denial in accordance with Rule .0809(4) of this
Section.
(d) Any provider receiving a provider approval denial shall
have 15 business days to respond to the denial.
(e) As a condition to continued provider approval,
providers shall conduct a minimum of one course within the State of North Carolina each calendar year.
(f) Providers shall retain continuing education records for
three years and shall provide these records upon request to the Commissioner or
to the Administrator.
History Note: Authority G.S. 58-2-40; 58-33-130;
58-33-132;
Eff. February 1, 1996;
Amended Eff. February 1, 2008.
11 NCAC 06A .0814 AGENT EDUCATION ON LTCP POLICIES:
COMPANY RESPONSIBILITY
(a) Each licensee who holds an accident and health or
sickness license, a Medicare/Supplement Long-Term Care limited lines license,
and who sells, solicits or negotiates Long-term Care Partnership policies shall
complete eight hours of continuing education in Long-Term Care Partnership as
defined in 11 NCAC 06A .0801(12) within one year of March 7, 2011.
(b) Each licensee issued an accident and health or sickness
license or a Medicare/Supplement Long-Term Care limited lines license after
March 7, 2011 shall complete eight hours of continuing education in Long-Term
Care Partnership as defined in 11 NCAC 06A .0801(12) prior to selling,
soliciting or negotiating a Long-Term Care Partnership Policy.
(c) Each licensee who holds an accident and health or
sickness license, a Medicare/Supplement Long-Term Care limited lines license,
and who sells, solicits or negotiates Long-term Care Partnership policies shall
complete four hours of continuing education in Long-Term Care Partnership every
biennial compliance period thereafter as defined in this Section.
(d) Insurers who provide Long-Term Care Partnership
insurance shall verify that their appointed agents who sell, solicit or negotiate
Long-Term Care Partnership policies as defined in G.S. 58-55-55(6) and G.S.
58-55-60 meet the continuing education requirements prescribed by this Rule.
Verification may be accomplished by obtaining and maintaining the continuing
education certificate of completion or by obtaining and maintaining a copy of
the continuing education transcript for each agent.
(e) Upon written request by the Commissioner the records
obtained by the insurer to verify the agent has satisfied the continuing
education requirements of this Rule shall be provided to the Commissioner
within 30 calendar days.
History Note: Authority G.S. 58-2-40; 58-2-190;
58-33-130; 58-55-55; 58-55-60;
Eff. March 1, 2011.
SECTION .0900 – PUBLIC ADJUSTERS
11 NCAC 06A .0901 DEFINITIONS
11 NCAC 06A .0902 TRANSACTIONS WITH INSUREDS
11 NCAC 06A .0903 RELATIONSHIPS WITH THIRD PARTIES
11 NCAC 06A .0904 REGULATORY MATTERS
History Note: Authority G.S. 58-2-40; 58-33-10; 58-33-10(b);
58-33-25(a); 58-33-30; 58-33-70; 58-33-76; 58-63-15(2), 58-63-15(11);
Eff. April 1, 1996;
Amended Eff. February 1, 2006;
Repealed Eff. October 1, 2010.
11 NCAC 06A .0905 CATASTROPHIC DISASTERS
History Note: Authority G.S. 58-2-40; 58-33-46;
58-33-70; 58-33-120; 58-63-10; 58-63-15;
Eff. February 1, 2006;
Repealed Eff. October 1, 2010.
11 NCAC 06A .0906 FINGERPRINTS REQUIRED FOR CRIMINAL
RECORD CHECKS
(a) An applicant for a resident public adjuster license
shall furnish the Commissioner with a complete set of the applicant's
fingerprints as authorized by G.S. 58-33A-15. An applicant for a public
adjuster license includes:
(1) An applicant for an initial resident public
adjuster license;
(2) A non-resident public adjuster applying for
a resident public adjuster license;
(3) A resident public adjuster license
applicant applying for reinstatement of license that has been lapsed for more than
one year;
(4) A resident public adjuster license
applicant whose license has been suspended or revoked for non-payment of child
support pursuant to G.S. 110-142.1; or
(5) An owner, partner, officer manager, or
director of a business entity, or member or manager of a limited liability
company applying for a resident public adjuster business entity license.
(b) As authorized by G.S. 58-33A-15, fingerprints shall be
furnished in the following manner:
(1) Each resident public adjuster license
applicant who is required to submit fingerprints under G.S. 58-33A-15 shall
have a complete set of their fingerprints electronically captured by a criminal
law enforcement agency approved by State Bureau of Investigation (SBI) to
submit fingerprints via electronic means;
(2) Each resident public adjuster license
applicant who is required to submit fingerprints under G.S. 58-33A-15 shall
submit with the public adjuster license application the Electronic Fingerprint Submission
Release of Information Form that has been completed and certified by a law enforcement
officer that the applicant's fingerprints have been submitted via electronic
means to the SBI;
(3) Each resident public adjuster license
applicant who is required to submit fingerprints under G.S. 58-33A-15 shall
submit with the public adjuster license application the Authority For Release
Of Information form required by the SBI to release the criminal history record
check information to the Department;
(4) Each resident public adjuster license
applicant who is required to submit fingerprints under G.S. 58-33A-15 shall
submit with the public adjuster license application the cost for the state and national
criminal history record fee that is set forth pursuant to G.S. 114-19.1(a); and
(5) All fingerprint impressions must be
suitable for use by the SBI to conduct a state criminal history record check
and for the Federal Bureau of Investigations (FBI) to conduct a national
criminal history record check. If the SBI deems the electronic fingerprints
are not suitable, the Commissioner shall notify and provide instructions to the
applicant to resubmit his fingerprints in the manner set forth in Subparagraph
(1) of this Paragraph within 30 days.
(c) The application of a resident public adjuster required
to submit fingerprints is not be complete until the Department receives the
state and national criminal history record information. In accordance with
G.S. 58-33A-20(c), the Commissioner shall not issue the license of a public
adjuster that does not satisfy the license application requirements.
History Note: Authority G.S. 58-2-40; 58-33A-15;
58-33A-20;
Eff. October 1, 2010.
