Key Takeaways
- The North Carolina Department of Insurance (NCDOI) regulates all insurance activities in North Carolina under General Statutes Chapter 58
- The Insurance Commissioner is elected by North Carolina voters to a 4-year term and has broad regulatory authority
- NCDOI handles licensing, enforcement, consumer complaints, rate review, and market conduct examinations
- North Carolina insurance law is found in North Carolina General Statutes Chapter 58
- North Carolina requires background checks for all insurance license applicants
North Carolina Department of Insurance (NCDOI)
Important: This study guide covers North Carolina state-specific Life & Health insurance content only. You should complete the national Life & Health exam preparation first, as it covers the foundational insurance concepts tested on your exam.
The North Carolina Department of Insurance (NCDOI) is the state agency responsible for regulating the insurance industry in North Carolina. Like California, North Carolina is one of the few states where the Insurance Commissioner is elected.
The Insurance Commissioner
The Insurance Commissioner is:
- Elected by North Carolina voters to a 4-year term
- One of only 11 states where the commissioner is elected
- Responsible for enforcing North Carolina General Statutes Chapter 58
- Authorized to adopt rules, investigate violations, and discipline licensees
Commissioner Powers and Duties
| Power | Description |
|---|---|
| Licensing | Issue, suspend, and revoke producer licenses |
| Rulemaking | Adopt rules interpreting the Insurance Code |
| Enforcement | Investigate and prosecute violations |
| Rate Review | Review insurance rates for compliance |
| Consumer Protection | Handle complaints and protect policyholders |
| Market Conduct | Examine insurer business practices |
North Carolina General Statutes Chapter 58
North Carolina insurance law is found in North Carolina General Statutes Chapter 58:
- Licensing requirements for producers and insurers
- Policy standards and required provisions
- Consumer protections and disclosure requirements
- Prohibited practices and penalties
- Claims handling requirements
Exam Tip: Remember that the Insurance Commissioner is ELECTED in North Carolina (one of only 11 states). This is frequently tested.
NCDOI Organization
NCDOI operates through several divisions:
- Agent Services Division - Handles producer licensing and CE
- Life and Health Division - Regulates life and health insurance products
- Consumer Services Division - Handles consumer complaints
- Financial Evaluation Division - Monitors insurer solvency
- Market Regulation Division - Conducts market conduct examinations
How is the North Carolina Insurance Commissioner selected?
Where is North Carolina insurance law primarily found?