CHAPTER 06 AGENT SERVICES DIVISION
SUBCHAPTER 06A AGENT SERVICES DIVISION
SECTION .0100 GENERAL PROVISIONS
11 NCAC 06A .0101DEFINITIONS
(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 .0102PURPOSE OF DIVISION
11 NCAC 06A .0103DEPUTY COMMISSIONER
11 NCAC 06A .0104DIVISION 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Repealed Eff.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 .0201GENERAL INFORMATION
(a) All forms pertaining to licensure including applications, bonds, appointments, termination of appointments and other forms required by Chapter 58 shall be supplied by the Division. The Division shall make these forms available in an electronic format and require the licensee or company to file documents electronically with the Commissioner or the Commissioner's designee. The actual cost of the electronic filing is the administrative fee charged by the Commissioner's designee which may include a transaction fee, a credit card processing fee, or other bank processing fee. The administrative fee shall be paid at the time of the electronic filing transaction by the electronic payment options made available by the Commissioner's designee through electronic check, credit card, automated clearing house (ACH), or electronic funds transfer (EFT). The Division shall provide instructions for proper completion of all forms.
(b) Forms shall be completed in full and must contain necessary signatures in order to be accepted. Companies and applicants shall submit all forms or complete other requirements within time schedules established under Chapter 58.
(c) Companies or applicants may duplicate forms without alteration or modification thereto.
(d) If any additional supporting documents, information or fees are required under Chapter 58, they shall be submitted with the appropriate forms or applications. The additional supporting documents, information, or fees required under Chapter 58 shall be filed electronically to the Commissioner or the Commissioner's designee. The actual cost of the electronic filing is the administrative fee charged by the Commissioner's designee which may include a transaction fee, a credit card processing fee, or other bank processing fee. The administrative fee shall be paid at the time of the electronic filing transaction by the electronic payment options made available by the Commissioner's designee through electronic check, credit card, automated clearing house (ACH) or electronic funds transfer (EFT).
History Note:Authority G.S. 58-2-40; 58-2-250;
Eff. February 1, 1976;
Readopted Eff. June 12, 1978;
Amended Eff. October 1, 2010; February 1, 1989;
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. June 25, 2016.
11 NCAC 06A .0202FORM A 1
11 NCAC 06A .0203FORM A 2
11 NCAC 06A .0204APPLICATION FOR BROKER'S LICENSE
11 NCAC 06A .0205LICENSE APPLICATION/MOTOR VEHICLE DAMAGE APPRAISERS
11 NCAC 06A .0206EXAMINATION PERMIT
11 NCAC 06A .0207FAILURE 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 .0208BOND FORMS FOR ACCIDENT AND HEALTH AGENTS
11 NCAC 06A .0209BOND 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 .0210N.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 .0211N.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 .0212LICENSES
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 .0213SELF EMPLOYED ADJUSTER RENEWAL APPLICATION
11 NCAC 06A .0214MOTOR VEHICLE DAMAGE APPRAISER RENEWAL APPLICATION
11 NCAC 06A .0215RESIDENT BROKER APPLICATION
11 NCAC 06A .0216NONRESIDENT 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 .0217NORTH 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 .0218TERMINATION 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 .0219APPLICATION 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 .0220DESIGNATED 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 .0221CANDIDATE GUIDE
11 NCAC 06A .0222NORTH CAROLINA INSURANCE LICENSE APPLICATION
11 NCAC 06A .0223NORTH CAROLINA LIMITED REPRESENTATIVE APPLICATION
11 NCAC 06A .0224ADJUSTER AND APPRAISER N.C. LICENSE APPLICATION
11 NCAC 06A .0225APPOINTMENT OF NORTH CAROLINA AGENT
11 NCAC 06A .0226TERMINATION OF NORTH CAROLINA AGENT APPOINTMENT
11 NCAC 06A .0227APPLICATION FOR LICENSE TO REPRESENT A PURCHASING GROUP
11 NCAC 06A .0228BOND (FORM B) PG 2
11 NCAC 06A .0229N.C. INSURANCE AGENT/LICENSE APPLICATION RISK RETENTION
11 NCAC 06A .0230APPOINTMENT OF NORTH CAROLINA AGENT RISK RETENTION
11 NCAC 06A .0231TERMINATION OF NORTH CAROLINA AGENT RISK RETENTION
11 NCAC 06A .0232APPLICATION FOR RESIDENT SURPLUS LINES LICENSE
11 NCAC 06A .0233BOND (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 .0234RESIDENT 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 .0235CORPORATE SURPLUS LINES APPLICATION
11 NCAC 06A .0236APPLICATION 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 .0237FOREIGN 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 .0238RENTAL 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 .0239NONRESIDENT SURPLUS LINES LICENSE APPLICATION
11 NCAC 06A .0240NONRESIDENT 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 .0301TYPES 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 .0302EXAMINATIONS – 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 .0303SCHEDULE 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 .0304RESPONSIBILITY 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 .0305ADMINISTRATION 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 .0306REGISTRATION 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 .0401LICENSES: 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 .0402LICENSING OF RESIDENT AGENT, LTD REPRESENTATIVE AND ADJUSTER
(a) An applicant for a resident variable life and variable annuity product shall hold a resident life license before making application for a resident variable life and variable annuity product license. An agent licensed to sell variable life and variable annuity products shall be appointed by a company authorized to sell variable annuities and variable life insurance products in North Carolina. The company shall verify that the agent has met the requirements of the NASD or its successor organization.
(b) A limited representative shall be appointed with each company for which he will solicit business for the following kinds of insurance:
(1)Dental services;
(2)Limited line credit insurance;
(3)Motor club;
(4)Prearrangement insurance, as defined in G.S. 58-60-35(a)(2), when offered or sold by a preneed sales licensee licensed under Article 13D of Chapter 90 of the General Statutes; or
(5)Travel, accident and baggage.
(c) Responsibility of insurance companies for forms:
(1)Companies shall have on file with the Division the address and email address of one central licensing office and the individual within such office to which all correspondence, licenses, and invoices will be forwarded.
(2)Companies shall have on file with the Division the name of the individual responsible for all agent appointments and termination of agent appointments submitted by the company to the Division.
(3)A company shall verify the licensure of an agent before the company appoints the agent.
(4)Companies shall notify the Division within 10 days after any change of address or email address of the central licensing office and of any change of the individual within such office to which all correspondence, licenses, and invoices will be forwarded.
(d) Responsibility of the agent, limited representative and adjuster:
(1)A person, after surrender or termination of a license for such period of time that he is no longer eligible for waiver of the examination, shall meet all legal requirements for previously unlicensed persons.
(2)Every licensee shall, upon demand from the Division, furnish in writing any information relating to the licensee's insurance business within 10 business days after the demand.
(e) An applicant for a resident license shall, if an electronic record is not available, obtain an original letter of clearance from his former state of residency certifying the kinds of insurance for which the applicant was licensed, that all licenses held in that state have been canceled and that the applicant was in good standing in that state at the time of the cancellation of licenses. A letter of clearance is valid for 90 days from date of issuance.
(f) Only individuals may apply for limited representative and adjuster licenses.
History Note:Authority G.S. 58-2-40; 58-2-195(a); 58-33-26; 58-33-30; 58-33-66;
Eff. February 1, 1976;
Readopted Eff. June 12, 1978;
Amended Eff. October 1, 2010; February 1, 2008; April 1, 2003; February 1, 1996; October 1, 1990; February 1, 1989;
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. June 25, 2016.
11 NCAC 06A .0403LICENSING: 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 .0404LICENSING 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 .0405LICENSING 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 .0406LICENSING OF RESIDENT VARIABLE CONTRACT LTD REPRESENTATIVE
11 NCAC 06A .0407LICENSING/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 .0408LICENSING 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 .0409LICENSING 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 .0410TEMPORARY 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 .0411LIMITED LICENSES