Agents and Adjusters
Legislative Change Resources
2015 Legislative Updates
SESSION LAW 2015-101 - AN ACT TO MODERNIZE THE SURPLUS LINES ACT BY INCLUDING ALIEN INSURERS IN THE DEFINITION OF AN ELIGIBLE SURPLUS LINES INSURER, BY REPEALING COUNTERSIGNING REQUIREMENTS, AND BY PROVIDING GREATER FLEXIBILITY FOR THE MANNER OF COLLECTION AND REFUND OF THE SURPLUS LINES TAX.
S.L. 2015-101 was signed by the Governor and became effective June 19, 2015 however S.L. 2015-281, Part V. TECHNICAL CORRECTIONS , Section 13 and Section 14 , amended the effective date of Sections 4, 5, and 6 of S. L. 2015 -101 to be effective January 1, 2017.
Section 1 of S.L. 2015-101 amends G.S. 58-21-10(3) by adding "an alien insurer as defined in G.S. 58-21-17".
Section 2 of S.L. 2015- 101 amends G.S. 58-21-35(a) by adding "or the stamping office, as appropriate".
Section 3 of S.L. 2015 -101 amends G.S. 58-21-40 Surplus lines regulatory support organization (a) by deleting "to" and adding "to carry out the following functions:",(a) (4) by deleting "Countersign nonresident produced surplus lines coverages and remit premium taxes for those coverages under G.S. 58-21-70 by means satisfactory to the Commissioner; and charge the nonresident surplus lines licensee a fee for the certification and countersignature as approved by the Commissioner." substituting "establishes a stamping office to process all surplus lines insurance and remit premium taxes for those coverages under G.S. 58-21-85 by means satisfactory to the Commissioner, and charge surplus lines licensees a fee for such processing." Also amended G.S. 58-21-40(d) by deleting the word "resident".
Section 4. of S. L. 2015- 101 amends G.S. 58-21-65 Licensing of surplus lines licensee (c) by deleting "resident" and (e) by deleting "Nonresident surplus lines licensees shall be licensed in accordance with Article 33 of this Chapter"
Section 5. of S.L. 2015-101 rewrites G.S. 58-21-70 Surplus lines licensees may accept business from other agents or brokers by deleting "countersignatures required; remittance of premium tax" from the title of G.S. 58-21-70 and by deleting both sections (b) "Every report filed by a nonresident licensee under G.S. 58-21-35(a) shall, before being filed with the Commissioner, be countersigned by a resident licensee or by a regulatory support organization. The resident licensee or regulatory support organization may charge the nonresident licensee a countersignature fee." and (c) "Every resident licensee and regulatory support organization that countersigns a report under subsection (b) of this section is responsible for remitting the premium tax for the coverage, as specified in G.S. 58-21-85, to the Commissioner.".
Section 6. of S.L. 2015-101 amends G.S. 58-21-85 Surplus lines tax (a) deleting "by the surplus lines licensee as specified" substituting " a in a manner approved by the Commissioner" and deleting "directly by the surplus lines licensee or through the producing broker, if any" substituting "directly" and (b) is deleted "At the same time that he files his quarterly report as set forth in G.S. 58-21-80, each surplus lines licensee shall pay the premium receipts tax due for the period covered by the report.".
2014 Rule Filing – Effective 10-1-2014
The following North Carolina Administrative Rule change for Title 11 NCAC Chapter 6A was approved for an October 1, 2014 effective date:
2013 Legislative Updates
House Bill 240 – Insurance Technical/ Clarifying Change
Effective June 26, 2013, a portion of this bill amends North Carolina General Statute § 58-33A-65(f)(3) to clarify communications with an insured and other parties regarding the settlement of the insured's claim once a public adjuster has been retained. Specifically, effective July 1, 2013, there is no longer a prohibition that prevents the company adjuster or other insurance representative from communicating directly with the insured without the permission or consent of the public adjuster or the insured's legal counsel.
House Bill 340 – Limited Lines Travel Insurance Business Entity License
Effective January 1, 2014, a new section was added to Article 33 of Chapter 58 relative to the sale of Limited Lines Travel Insurance and licensure requirements of travel retailers. These changes are in compliance with the NAIC uniform standard for the travel insurance limited lines license.
2011 Legislative Updates
House Bill 617 – Portable Electronics Insurance Effective January 1, 2012, a new Article 44A was added to Chapter 58 of the North Carolina General Statutes relative to the sale of portable electronics insurance and licensure requirements for vendors.
Senate Bill 321 – Surplus Lines Insurance Effective July 21, 2011, an act to conform provisions of North Carolina Surplus Lines laws to the Federal non-admitted and reinsurance reform act of 2010.
House Bill 298 – Insurance Law Changes Effective July 1, 2011, update to North Carolina General Statute 58-2-69(g) relative to the Commissioner contracting with the NAIC or other persons for the provision of online services to applicants and licensees.
The Department adopted the continuing education (CE) exemptions under the Producer Licensing Model Act (PLMA) which allows exemptions from insurance CE only for military and medical reasons. On July 21, 2010, the NAIC Producer Licensing Working Group adopted a revision to the Uniform Licensing Standard (ULS) for Continuing Education (CE) Requirements that added a third exemption to CE. The third exemption addresses states such as North Carolina that have a grandfather provision for a particular group of licensees that meet specific criteria. The ULS were updated to permit states to continue allowing for grandfather provisions, however, the state must, on a prospective basis, eliminate CE waivers based on age or years in the business.
The Agent Services Division submitted a rule revision to the CE requirements so that previously exempt from CE grandfathered licensees under 11 NCAC 6a.0802(j) are also now exempt from Ethics and Flood CE requirements. The below revision to 11 NCAC 6a.0802 was approved for an effective date of June 1, 2011. A letter will be mailed to each licensee that currently has a permanent CE exemption notifying them that effective June 1, 2011, they no longer have to complete Ethics of Flood CE requirements.
Long-Term Care Partnership (Updated 2/21/2011)
On January 6, 2011, Centers for Medicare and Medicaid Services (CMS) approved the amendment to the NC Medicaid State Plan to allow for resource disregard at long-term care Medicaid eligibility determination and resource protection at estate recovery. Pursuant to Senate Bill 1193 (SESSION LAW 2010-68), the Long-Term Care Partnership goes into effect 60 days after CMS approval on March 7, 2011. The full text of SB 1193 can be viewed through the following link: http://www.ncga.state.nc.us/Sessions/2009/Bills/Senate/PDF/S1193v6.pdf.
The Medicaid State Plan in NC is administered by the NC Department of Health and Human Services (DHHS). The approved NC LTC Partnership policy is federally tax qualified, contains an inflation feature, and displays a Partnership Disclosure Notice. For greater detail see NCGS 58-55-60 or contact your company to discuss the type of product they are filing for approval. Sales can begin March 7, 2011 provided the company has gotten approval of the policy, forms, disclosure notices, rates, etc. applicable to the long-term care partnership product.
Relative to the LTCP program, Agent Services Division has revised the agent continuing education (CE) requirements based on national standards set forth by the federal Deficit Reduction Act of 2005, P.L.109-171 and by the NAIC. The CE rules revisions approved effective March 1, 2011 require companies to ensure that each producer who markets the LTC Partnership products receives the training as specified in the Act. The rule changes effective March 1, 2011 are posted below:
The Agent Services Division has prepared the following Frequently Asked Questions to assist licensees and CE providers with their questions relative to the new LTCP rules:
Please contact Agent Services Division at 919-807-6800 if you have any questions.