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;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. June 25, 2016.

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Repealed Eff.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.

(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;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. June 25, 2016.

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;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. June 25, 2016.

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;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. June 25, 2016.

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;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. June 25, 2016.

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;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. June 25, 2016.

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;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. June 25, 2016.

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;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. June 25, 2016.

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;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. June 25, 2016.

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;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. June 25, 2016.

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;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. June 25, 2016.

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 Financial Industry Regulatory Authority (FINRA) or its successor organization.

(b) A limited representative shall be appointed with each company for which he or she will solicit business for the following kinds of insurance:

(1) Dental services;

(2) Limited line credit insurance;

(3) 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

(4) Travel, accident, and baggage.

(1) Companies shall have on file with the Division the address and email address of one central licensing office and the individual within that office to whom 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 that office to whom 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 or she 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 in accordance with G.S. 58-2-195(a).

(e) An applicant for a resident license shall, if an electronic record is not available, obtain an original letter of clearance from his or her 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;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. June 25, 2016;

Amended Eff. August 1, 2021.

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;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. June 25, 2016.

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;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. June 25, 2016.

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: 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;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. June 25, 2016.

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;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. June 25, 2016.

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;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. June 25, 2016.

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 of dates and methods for renewing agent and limited representative appointments. 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, shall be 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;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. June 25, 2016;

Amended Eff. August 1, 2021.

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;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. June 25, 2016.

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;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. June 25, 2016.

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;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. June 25, 2016.

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;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. June 25, 2016.

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;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. June 25, 2016.

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

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;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. June 25, 2016;

Temporary Repeal Eff. May 6, 2026.

11 NCAC 06A .0702 PRELICENSING EDUCATION SCHOOLS

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;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. June 25, 2016;

Temporary Repeal Eff. May 6, 2026.

11 NCAC 06A .0703 PROGRAM DIRECTORS

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;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. June 25, 2016;

Temporary Repeal Eff. May 6, 2026.

11 NCAC 06A .0704 COURSES

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;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. June 25, 2016;

Temporary Repeal Eff. May 6, 2026.

11 NCAC 06A .0705 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; April 1, 1996; October 1, 1990;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. June 25, 2016;

Temporary Repeal Eff. May 6, 2026.

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:

(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;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. June 25, 2016.

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 shall be deemed to 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 shall be certified on an annual basis by the producer's attending physician. 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 or she is licensed to do.

(j) A producer 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 producer certifies to the Commissioner that he or she:

(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 producer is an inactive agent who neither solicits applications for insurance nor takes part in the day to day operation of an insurance agency.

(k) Courses completed before the issue date of a new license shall 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. Each 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 means 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 shall determine whether 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 shall determine the month that continuing education is due. (Example: An individual born in October shall 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 shall be 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, shall 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, shall 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 shall have during the four-year conversion.

Existing 1111

(o) A new licensee requiring continuing education means 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 shall determine whether 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 shall determine the month that continuing education is due. (Examples: An individual born in October shall 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, shall complete 24 hours of continuing education by October 31, 2011.) The chart below shows the earliest deadline by which a new licensee shall be required to complete 24 hours of continuing education.

EKS 2

(p) A member of a professional insurance association shall receive no more than four ICECs during the biennial compliance period based solely on membership in the association, if the professional insurance association:

(1) is approved as a continuing education provider;

(2) has been in existence for at least five years;

(3) was formed for purposes other than providing continuing education;

(4) has provided the Commissioner or the Administrator with the association's Articles of Incorporation on file with the N.C. Secretary of State;

(5) certifies to the Commissioner or Administrator that the licensee's membership is active during the biennial compliance period;

(6) certifies to the Commissioner or Administrator that the licensee attended 50 percent of the regular meetings;

(7) certifies 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;

(8) certifies to the Commissioner or Administrator that the licensee attended a national meeting on an annual basis (i.e., National Convention, Legislative "Day on the Hill" in Washington, DC); and

(9) pays 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;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. June 25, 2016;

Amended Eff. November 1, 2017.

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;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. June 25, 2016.

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;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. June 25, 2016.

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;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. June 25, 2016.

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;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. June 25, 2016.

11 NCAC 06A .0808 INSTRUCTOR QUALIFICATION

(a) Continuing education providers shall certify that continuing education instructors meet the qualification requirements as provided in Paragraph (b) of this Rule. The Commissioner may approve instructors, not meeting the qualifications as provided in Paragraph (b) of this Rule, who possess specific areas of expertise to instruct courses comprising those areas of expertise.

(b) Each instructor must meet one of the following qualifications which shall be verified by the instructor's continuing education provider:

(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);

(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; or

(F) Has an associate or bachelor's degree in insurance, or possesses education and experience determined by the Commissioner to be equivalent to either: (i) a baccalaureate or higher degree and at least two years of experience as an insurance instructor or as an educational administrator; or (ii) a baccalaureate degree or higher and at least six years of experience in the insurance industry with a minimum of two years of experience in insurance management.

(2) Life insurance and annuities:

(A) Chartered Life Underwriter (CLU);

(B) Chartered Financial Consultant (ChFC);

(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; or

(H) Has an associate or bachelor's degree in insurance, or possesses education and experience determined by the Commissioner to be equivalent to either: (i) a baccalaureate or higher degree and at least two years of experience as an insurance instructor or as an educational administrator; or (ii) a baccalaureate degree or higher and at least six years of experience in the insurance industry with a minimum of two years of experience in insurance management.

(3) Property insurance, casualty insurance, and personal lines:

(A) Chartered Property and Casualty Underwriter (CPCU);

(B) Accredited Advisor in Insurance (AAI);

(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; or

(c) 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 provide

insurance company training.

(d) 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.

(e) The Commissioner shall require applicants and current instructors to participate in a personal interview, provide a video or audio tape demonstrating course instruction, and submit a written history of courses taught or any other documentation that will verify the applicant's qualifications to instruct approved insurance courses.

(f) 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.

(g) As a condition to continued instructor qualification, providers shall ensure that each instructor teaches at least one continuing education course each calendar year.

(h) 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 continuing education courses or providers;

(3) The instructor's employment has been terminated by any approved provider 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, licensing examination questions under G.S. 58-33-30.

(i) In all proceedings to deny, revoke, suspend, or terminate approval of an instructor, the provisions of Chapter 150B of the General Statutes shall be applied.

(j) 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 the applicant is now eligible for reconsideration. The Commissioner may require an investigation before new approval is granted.

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;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. June 25, 2016;

Temporary Amendment Eff. May 6, 2026.

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/CE_Providers_For_Insurance.aspx#Forms;

(B) pay the fee prescribed in G.S. 58-33-133(b);

(D) provide copies of handouts to be distributed to course participants.

(2) All providers of supervised individual study programs shall file copies of:

(A) the study programs;

(B) the examination; and

(c) The Commissioner shall determine the number of ICECs that have been assigned to the approved course in accordance with Rule .0805 of this Section.

(d) If a course is not approved or disapproved by the Commissioner or his or her designee within 60 days after receipt of all required information, the course shall be 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 or her 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 only a certification of attendance;

(B) the method of course presentation;

(D) a 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 10 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) 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.

(i) A provider shall submit course attendance records electronically to the Commissioner or Administrator within 15 business days after course completion.

(j) 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;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. June 25, 2016;

Amended Eff. July 1, 2017; December 1, 2016.

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.

(d) The Commissioner may withdraw his approval of any violator to provide or conduct courses.

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, 1996; June 1, 1992;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. June 25, 2016.

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 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.

(13) Failing to use qualified or approved instructors.

(14) Refusing to cooperate with Department employees in an investigation or inquiry.

(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.

History Note: Authority G.S. 58‑2‑40; 58-33-125(a); 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. October 1, 2010; February 1, 2008; January 1, 2007; June 1, 1992;

Temporary Amendment Eff. May 6, 2026.

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;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. June 25, 2016.

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;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. June 25, 2016.

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;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. June 25, 2016.

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

(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.

SECTION .1000 - MOTOR VEHICLE DAMAGE APPRAISERS

11 NCAC 06a .1001 DEFINITIONS

As used in this Section, the following terms shall mean:

(1) "Claimant" means as defined in 11 NCAC 04 .0425.

(2) "Motor vehicle damage appraiser" means as defined in G.S. 58-33-10(14).

History Note: Authority G.S. 58-2-40;

Eff. April 1, 2020.

11 NCAC 06A .1002 ETHICAL STANDARDS

(a) Every licensed motor vehicle damage appraiser, when conducting business, shall:

(1) identify himself or herself and his or her job title;

(2) when requested, provide his or her National Producer Number, and the Department's website address and phone number for verification of license status;

(3) prepare an independent appraisal of damages; and

(4) comply with all local, State, and federal laws, in the motor vehicle damage appraiser's business affairs.

(b) Every licensed motor vehicle damage appraiser shall refrain from:

(1) disparaging the professional reputation of a motor vehicle damage appraiser or other persons associated with the claim;

(2) recommending the utilization of a particular motor vehicle repair service in violation of G.S. 58-33-76(a).

(3) recommending a claimant needing repairs or other services in connection with a loss to any person with whom the motor vehicle damage appraiser has a financial interest or who provides the motor vehicle damage appraiser any compensation for the referral or any resulting business;

(4) impeding the appraisal process or the settlement of a property damage claim;

(5) receiving any gratuity or other consideration in violation of G.S. 58-33-76(b).

(6) advising or recommending a claimant to obtain or not obtain legal advice or counsel from a particular legal counsel;

(7) giving legal advice on property damage claims in violation of G.S. 84-4;

(8) solicit a power of attorney from a consumer that authorizes the motor vehicle damage appraiser to sign insurance-related forms;

(9) attempting to influence a magistrate in the selection of an umpire pursuant to G.S. 20-279.21(d1), including using influence through a client or claimant;

(10) engaging in the salvage of automobiles if the salvage is obtained as a result of appraisal services rendered by the motor vehicle damage appraiser; and

(11) act in any manner outside the scope of a motor vehicle damage appraiser, as set forth in Chapter 58, Article 33 of the General Statutes.

(c) Pursuant to G.S. 58-2-70 and G.S. 58-33-46, the Commissioner may consider the failure of a licensed motor vehicle damage appraiser to comply with this Rule as a basis for administrative action.

History Note: Authority G.S. 58-2-40;

Eff, April 1, 2020.

SUBCHAPTER 6B ‑ THIRD PARTY ADMINISTRATOR

SECTION .0100 ‑ DESCRIPTION OF FORMS

11 NCAC 06B .0101 APPLICATION FORM

11 NCAC 06B .0102 BIOGRAPHICAL AFFIDAVIT

11 NCAC 06B .0103 TPA TRANSMITTAL

11 NCAC 06B .0104 RENEWAL APPLICATION FORM

11 NCAC 06B .0105 RENEWAL TPA TRANSMITTAL

History Note: Filed as a Temporary Amendment Eff. July 18, 1989, For a Period of 180 Days to Expire on

January 12, 1990;

Filed as a Temporary Rule Eff. May 16, 1988 For a Period of 180 Days to Expire on

November 11, 1988;

Authority G.S. 58‑9; 58‑536;

Eff. November 1, 1988;

Amended Eff. February 1, 1990;

Repealed Eff. January 1, 1997.

11 NCAC 06B .0106 ADMINISTRATOR'S QUESTIONNAIRE

11 NCAC 06B .0107 INTERNAL CONTROL (TPA‑IC‑89)

History Note: Authority G.S. 58‑9; 58‑527; 58‑529; 58‑536;

Eff. February 1, 1990;

Repealed Eff. January 1, 1997.

SECTION .0200 - REGISTRATION

11 NCAC 06B .0201 CONTENTS OF FULL APPLICATION

11 NCAC 06B .0202 MODIFICATION OF APPLICATION

11 NCAC 06B .0203 DURATION OF INITIAL CERTIFICATE OF REGISTRATION

11 NCAC 06B .0204 APPLICATION FOR RENEWAL OF A CERTIFICATE OF REGISTRATION

11 NCAC 06B .0205 RENEWAL CERTIFICATE OF REGISTRATION

History Note: Filed as a Temporary Amendment Eff. July 18, 1989 For a Period of 180 Days to Expire on January 12, 1990;

Filed as a Temporary Rule Eff. May 16, 1988 For a Period of 180 Days to Expire on November 11, 1988;

Authority G.S. 58‑9; 58‑525; 58‑527; 58‑529; 58‑532; 58‑536;

Eff. November 1, 1988;

Amended Eff. February 1, 1990;

Repealed Eff. July 1, 2000.

SECTION .0300 – FINANCIAL REQUIREMENTS

11 NCAC 06B .0301 FINANCIAL STATEMENTS

11 NCAC 06B .0302 DETERMINATION OF FINANCIAL RESPONSIBILITY

11 NCAC 06B .0303 FINANCIAL INFORMATION PUBLIC RECORDS

11 NCAC 06B .0304 SURETY BOND ISSUED BY LICENSED COMPANY

History Note: Filed as a Temporary Rule Eff. July 18, 1989 for a Period of 180 days to Expire on January 12, 1990;

Filed as a Temporary Rule Eff. May 16, 1988 For a Period of 180 Days to Expire on November 11, 1988;

Authority G.S. 58‑9; 58-11; 58-15; 58-29; 58-532; 58‑536; 132-6;

Eff. November 1, 1988;

Amended Eff. February 1, 1990;

Repealed Eff. July 1, 2000.

section .0400 – general provisions

11 NCAC 06B .0401 service contracts with insurance companies

11 NCAC 06B .0402 adjusting claims by administrators

11 NCAC 06B .0403 violations: penalties

History Note: Filed as a Temporary Rule Eff. May 16, 1988 For a Period of 180 Days to Expire on November 11, 1988;

Authority G.S. 58-9; 58-9.7; 58‑15; 58‑527; 58-529; 58-533; 58-536; 58-611(b);

Eff. November 1, 1988;

Amended Eff. February 1, 1990;

Repealed Eff. July 1, 2000.

11 NCAC 06B .0404 definitions

11 NCAC 06B .0405 payments of claims

History Note: Authority G.S. 58-9; 58-530; 58-536;

Eff. February 1, 1990;

Repealed Eff. July 1, 2000.