“Twisting” is a prohibited practice under North Carolina insurance regulations, specifically outlined in the North Carolina Insurance Code. It involves an agent inducing a policyholder to lapse, forfeit, surrender, or convert an existing insurance policy to purchase a new one, based on misrepresentations or incomplete comparisons of the two policies. The primary intent behind twisting is to benefit the agent through commissions, often at the policyholder’s financial detriment. North Carolina General Statute § 58-63-15(1) defines unfair methods of competition and unfair and deceptive acts or practices in the business of insurance, which includes misrepresentation and false advertising of insurance policies. Twisting falls under this broad prohibition. Penalties for engaging in twisting can be severe. The North Carolina Department of Insurance has the authority to impose fines, suspend or revoke an agent’s license, and order restitution to the affected policyholder. The specific penalty depends on the severity and frequency of the violation. Furthermore, agents may face civil lawsuits from policyholders who have suffered financial losses due to the twisting. The Department of Insurance investigates complaints and has the power to subpoena witnesses and documents to determine if a violation has occurred.

Licensed insurance producers in North Carolina are required to complete continuing education (CE) to maintain their licenses. The specific requirements are detailed in the North Carolina Administrative Code, Title 11, Chapter 12. Generally, producers must complete 24 hours of CE every two years, prior to their license renewal date. Three of these hours must be in ethics. The types of courses that qualify for CE credit are those approved by the North Carolina Department of Insurance. These courses cover a wide range of insurance topics, including updates to laws and regulations, product knowledge, and sales techniques. Producers can find approved courses through various providers. Failure to meet the CE requirements can result in penalties, including fines and suspension or revocation of the producer’s license. Producers who fail to complete their CE requirements by the deadline may be granted an extension, but they must pay a penalty fee. If the CE requirements are not met within the extension period, the license will be suspended. To reinstate a suspended license, the producer must complete all outstanding CE hours and pay a reinstatement fee. It is the producer’s responsibility to track their CE credits and ensure they are reported to the Department of Insurance.

The North Carolina Rate Bureau (NCRB) is a statutorily created organization responsible for filing rates, rules, and forms for property insurance (specifically fire, extended coverage, windstorm, hail, and other allied lines), homeowners insurance, and automobile insurance in North Carolina. Its primary purpose is to ensure that rates are neither excessive, inadequate, nor unfairly discriminatory, as outlined in North Carolina General Statute Chapter 58, Article 36. The NCRB is comprised of insurance companies that write these lines of business in North Carolina. It collects data on losses and expenses, analyzes this data, and proposes rate filings to the North Carolina Department of Insurance. The Commissioner of Insurance reviews these filings and determines whether they meet the statutory requirements. While the NCRB proposes rates, the Commissioner of Insurance has the ultimate authority to approve or disapprove them. If the Commissioner disapproves a rate filing, the NCRB can request a hearing. This process ensures that rates are based on sound actuarial principles and are fair to both insurers and consumers. The NCRB also plays a role in providing information to consumers about insurance rates and coverage options.

The process for handling complaints against insurance companies or agents in North Carolina is overseen by the North Carolina Department of Insurance (NCDOI). Consumers who believe they have been treated unfairly by an insurance company or agent can file a complaint with the NCDOI. The complaint process typically begins with the consumer submitting a written complaint to the NCDOI, providing details about the issue, including policy numbers, dates, and names of individuals involved. The NCDOI then reviews the complaint and may request additional information from the consumer or the insurance company/agent. The NCDOI investigates the complaint to determine if there has been a violation of the North Carolina Insurance Code or other applicable laws. This investigation may involve reviewing documents, interviewing witnesses, and consulting with experts. If the NCDOI finds that a violation has occurred, it may take disciplinary action against the insurance company or agent. This action could include fines, suspension or revocation of license, or requiring the company to take corrective action, such as paying a claim that was wrongfully denied. The NCDOI also has the authority to order restitution to the consumer. North Carolina General Statute § 58-2-70 outlines the powers and duties of the Commissioner of Insurance, including the authority to investigate complaints and take disciplinary action.

North Carolina has specific regulations governing the use of credit information in underwriting and rating personal insurance policies. These regulations are designed to protect consumers from unfair discrimination based on their credit history. North Carolina General Statute § 58-39-15 governs the use of credit information. Insurers are permitted to use credit information as one factor in underwriting and rating personal insurance policies, but they cannot base a decision solely on credit information. They must also consider other factors, such as driving record, claims history, and years of experience. Insurers are required to disclose to consumers that they may use credit information in underwriting and rating. If an adverse action, such as a denial of coverage or a higher premium, is taken based on credit information, the insurer must provide the consumer with a specific reason for the adverse action and inform them of their right to obtain a free copy of their credit report. There are also restrictions on the types of credit information that insurers can use. For example, they cannot use credit information that is based on inquiries made for insurance purposes. Insurers must also re-underwrite or re-rate a policy if the consumer can demonstrate that their credit information is inaccurate or has been unfairly affected by certain events, such as identity theft or a catastrophic event.

“Controlled business” refers to insurance written on the producer’s own life, health, property, or risks, or those of their immediate family or business associates. North Carolina regulations place limitations on the amount of controlled business a producer can write to prevent individuals from obtaining a license solely to insure themselves or their close connections, rather than serving the general public. The specific limitations are outlined in the North Carolina Administrative Code. Generally, a producer cannot receive more than a certain percentage of their total commissions from controlled business. This percentage is typically around 25% to 50%, but the exact figure may vary depending on the specific circumstances and the type of insurance involved. If a producer exceeds the controlled business limitations, the North Carolina Department of Insurance may take disciplinary action, including suspending or revoking the producer’s license. The purpose of these regulations is to ensure that producers are primarily engaged in the business of selling insurance to the public and not just using their license for personal gain. Producers are required to maintain records of their business and report their controlled business activity to the Department of Insurance.

A temporary insurance producer license in North Carolina allows individuals to engage in certain insurance activities for a limited period without meeting the full requirements for a permanent license. These licenses are typically issued to individuals who need to temporarily manage an insurance business due to the death, disability, or absence of a licensed producer. The eligibility criteria for a temporary license are outlined in the North Carolina Insurance Code. Generally, the applicant must be at least 18 years old, be deemed trustworthy and competent, and demonstrate a need for the temporary license, such as being the surviving spouse or designated representative of a deceased or disabled producer. The duration of a temporary license is limited, typically for a period of 90 to 180 days, and may be renewable under certain circumstances. The specific activities that a temporary licensee is permitted to engage in are also limited. They can typically service existing policies, collect premiums, and perform administrative tasks, but they may not be authorized to solicit new business or sell new policies without supervision from a licensed producer. The North Carolina Department of Insurance has the authority to grant or deny temporary licenses and to set the terms and conditions of the license.

“Twisting” is a prohibited practice in North Carolina where an insurance producer induces a policyholder to lapse, forfeit, surrender, or convert an existing insurance policy to purchase another policy with the producer’s company, primarily for the producer’s financial gain, without demonstrating a clear benefit to the policyholder. This is considered unethical and detrimental to the consumer. North Carolina General Statute 58-63-15(1) specifically prohibits misrepresentation and false advertising of insurance policies, which includes twisting. Furthermore, North Carolina Administrative Code 11 NCAC 04 .0410 addresses unfair trade practices, providing further clarification and examples of actions that constitute twisting. Producers found engaging in twisting can face penalties including license suspension or revocation, fines, and potential legal action. The burden of proof lies on the producer to demonstrate that the replacement policy is genuinely in the policyholder’s best interest, considering factors like coverage, premiums, and financial stability.

North Carolina requires licensed insurance producers to complete continuing education (CE) courses to maintain their licenses. As per North Carolina Administrative Code 11 NCAC 04 .0501, producers must complete 24 hours of CE every two years, prior to their license renewal date. Three of these hours must be in ethics, focusing on insurance regulations and ethical conduct. The remaining hours can be in courses related to the lines of insurance for which the producer is licensed. Acceptable CE courses are those approved by the North Carolina Department of Insurance. These courses cover topics such as insurance law, policy updates, and industry best practices. Failing to meet the CE requirements can result in the lapse of the producer’s license. Producers are typically given a grace period to complete the requirements, but penalties, such as fines, may be imposed. If the CE requirements are not met within the grace period, the license will be revoked, and the producer will need to reapply for licensure, including passing the licensing exam again.

The North Carolina Insurance Information and Privacy Protection Act (NCGS 58-39-1 through 58-39-100) aims to protect the privacy of individuals’ insurance information. It governs how insurance companies collect, use, and disclose personal information obtained in connection with insurance transactions. The Act requires insurers to provide clear and conspicuous notice to applicants and policyholders about their information practices, including the types of information collected, the sources of information, and the purposes for which the information is used. Insurers must obtain authorization from individuals before disclosing their protected health information to third parties, except in certain circumstances, such as for underwriting, claims administration, or fraud prevention. The Act also grants individuals the right to access and correct their personal information held by insurers. Violations of the Act can result in penalties, including fines and other enforcement actions by the North Carolina Department of Insurance. The Act ensures fair information practices and protects consumers from unauthorized use or disclosure of their private data.

The North Carolina Rate Bureau (NCRB) is a statutorily created organization responsible for filing rates, rules, and forms for certain property and casualty insurance lines in North Carolina, primarily homeowners insurance, automobile insurance, and workers’ compensation insurance. The NCRB is not a state agency but operates under the oversight of the North Carolina Department of Insurance. The Bureau gathers statistical data from its member insurance companies and proposes rates based on this data, reflecting the overall risk and cost of providing insurance in the state. These proposed rates are then subject to review and approval by the Commissioner of Insurance. If the Commissioner disagrees with the proposed rates, a hearing may be held to determine fair and reasonable rates. While individual insurance companies can deviate from the NCRB’s filed rates under certain circumstances, the Bureau plays a significant role in shaping the overall insurance rate landscape for the covered lines of insurance, ensuring rates are adequate, not excessive, and not unfairly discriminatory, as mandated by North Carolina General Statute 58-93-5.

North Carolina General Statute 58-39-155 governs the use of credit information in personal lines insurance underwriting and rating. Insurers are permitted to use credit information, but with specific restrictions to protect consumers. They must initially disclose to the applicant that credit information may be used. If an adverse action, such as a denial or rate increase, is taken based on credit information, the insurer must provide specific reasons for the action. Insurers are prohibited from taking adverse action solely because an applicant or insured does not have a credit history. They also cannot use certain types of credit information, such as credit inquiries not initiated by the consumer or the absence of a particular type of account. Furthermore, consumers are entitled to dispute the accuracy of their credit information with the insurer, and the insurer must reinvestigate and correct any errors. The statute aims to balance the insurer’s need to assess risk with the consumer’s right to fair and accurate treatment.

The North Carolina Department of Insurance (NCDOI) is responsible for handling complaints against insurance companies and producers operating in the state. Consumers can file complaints with the NCDOI online, by mail, or by phone. The complaint should include detailed information about the issue, including policy numbers, dates, and supporting documentation. Upon receiving a complaint, the NCDOI reviews the information and may initiate an investigation. This may involve contacting the insurance company or producer to obtain their perspective and relevant records. The NCDOI has the authority to examine the insurer’s books and records and to interview relevant parties. Based on the investigation, the NCDOI may take various actions, including requiring the insurer to take corrective action, imposing fines or penalties, suspending or revoking the producer’s license, or issuing a cease and desist order. The NCDOI also attempts to mediate disputes between consumers and insurers to reach a resolution. North Carolina General Statute 58-2-70 outlines the Department’s authority to investigate complaints and enforce insurance laws.

Insurance fraud in North Carolina is a serious offense, with various statutes addressing different types of fraudulent activities. North Carolina General Statute 58-2-161 outlines the general prohibition against insurance fraud, which includes knowingly making false statements or misrepresentations to obtain benefits or payments under an insurance policy. This can encompass activities such as filing false claims, exaggerating losses, or concealing relevant information. Penalties for insurance fraud can vary depending on the severity of the offense, but typically include fines, imprisonment, and restitution. The North Carolina Department of Insurance has a dedicated Criminal Investigations Division that investigates suspected cases of insurance fraud and works with law enforcement agencies to prosecute offenders. The Department also engages in public awareness campaigns to educate consumers about the dangers of insurance fraud and how to report suspected cases. In addition to criminal penalties, insurance companies may also deny claims or cancel policies based on fraudulent activity. The state actively works to deter and punish insurance fraud to protect consumers and maintain the integrity of the insurance market.