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Legislative Change Resources

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.

CE Exemptions

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:

2010 Rules Filing

The following North Carolina Administrative Rule changes for Title 11 NCAC Chapters 6A and 4 were approved for an October 1, 2010 effective date:

Chapter 6A - Repealed Rules Effective 10-1-2010

  • 11 NCAC 06A .0413 LICENSING OF BUSINESS ENTITIES
  • 11 NCAC 06A.0901-0904
    • 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

Chapter 6A and Chapter 4 - Amended Rules Effective 10-1-2010

Chapter 6A - Adopted Rules Effective 10-1-2010

2010 Recommended CE Rules Currently On Hold

2010 Recommended PLE Rules Currently On Hold

Fee Increases

On August 7, 2009, Governor Perdue signed Senate Bill 202 into law. This was a budget appropriations bill for current operations of state departments, institutions, and agencies. Based on this bill, the license fees for certain Department of Insurance licenses issued by Agent Services Division were increased effective 8/15/2009.

License fees for bail bondsmen, runners, premium finance companies, motor clubs, collection agencies, and viatical settlement brokers were increased. View full text of Senate Bill 202.

Agent Services Division has revised the license applications for the above license types to reflect the new fee amounts effective 8/15/2009. These revised applications are posted on the Department’s website www.ncdoi.com. If Agent Services Division receives an application on or after 8/15/2009 with the incorrect license fee amount, we will not review the application until the correct fee amount is paid. We will send a letter to the applicant advising that the application is in a “pending” status until such time the total amount of fee is received.

Please contact Agent Services Division at 919-807-6800 if you have any questions.