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Agent Services Division |
| HOT TOPICS |
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| Hot Topics for Issues Impacting Your License (Updated 9/2/10) |
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- Collection Agency, Motor Club, and Premium Finance Company License Non-Renewals
Agent Services Division has now completed the 2010-2011 license renewals and lapsed the collection agency, motor club, and premium finance company licenses for all companies that failed to pay their license renewal fee. These company licenses were lapsed effective June 30, 2010 and the companies no longer have authority to engage in business activity related to their terminated license.
The attached license cancellation letter was sent to these companies.
Administrative action and/or sanctions may apply to companies who failed to pay license renewal fee by June 30, 2010. Please contact Agent Services Division at (919) 807-6800 if you have any questions.
- North Carolina has adopted the NAIC Public Adjuster Licensing Model Act. Notifications have been sent regarding these new licensing requirements to North Carolina public adjusters over the past several months. The following are some key provisions of this new law that are effective 7/1/2010:
1. Business entities acting as a public adjuster in North Carolina are required to obtain a license as a public adjuster. North Carolina G.S. 58-33A-5 defines a business entity as a corporation, association, partnership, limited liability company, limited liability partnership, or other legal entity. The business entity is required to designate a licensed public adjuster to be responsible for the business entity's compliance with North Carolina insurance laws and regulations. Resident business entities acting as a public adjuster are also required to submit electronic fingerprints for each “key person” for a state and federal criminal history background check. A “key person” is considered an owner, officer, partner, director, or any other individual who will be in a position to influence the operating decisions of the business entity.
Public adjuster business entities should submit an electronic application for licensure using the NAIC Uniform Business Entity Application through www.nipr.com. Resident public adjuster business entities must also submit fingerprints electronically for each key person; therefore, resident public adjuster business entity applications will pend for review by the state. Once the criminal history background check is received for each key person of the public adjuster business entity, a licensing decision will be made. Fingerprint submission instructions and required forms are located on the Department’s website www.ncdoi.com under applications and forms for insurance licensing http://www.ncdoi.com/asd/asd_applications_forms.asp.
2. A resident applicant for a public adjuster license is required to furnish the Commissioner with a complete set of the applicant’s fingerprints for a state and federal criminal history background check. A public adjuster applicant that completes a successful licensing examination is required to submit fingerprints electronically. Fingerprint submission instructions and required forms are located on the Department’s website www.ncdoi.com under applications and forms for insurance licensing http://www.ncdoi.com/asd/asd_applications_forms.asp. Once the criminal history background check is received for the public adjuster applicant, a licensing decision will be made.
3. Resident and non-resident individual public adjusters are required to show proof of financial responsibility by providing a $20,000 bond or an irrevocable letter of credit issued by a qualified financial institution in the amount of $20,000. There is no grandfather clause to exempt existing public adjuster licensees. In order to maintain current authority to act as a public adjuster in North Carolina, individual public adjusters must provide the Department with evidence of financial responsibility by submitting a completed NC Bond-PA form. The NC Bond-PA form is posted on the Department’s website under insurance licensing forms at the following location: http://www.ncdoi.com/asd/asd_applications_forms.asp. Public adjusters that fail to submit this required proof of financial responsibility will lapse in their authority to act as a public adjuster in North Carolina effective 7/1/2010.
- CATASTROPHIC ADJUSTERS
On May 7, 2010, the NC Department of Insurance issued Bulletin 10-B-03 to provide the procedure for catastrophic adjusters that companies will need to follow if a catastrophic event were to occur in North Carolina. NC Emergency Management staff will not allow any adjuster access to a declared disaster area unless the adjuster is carrying proper identification. The Department is requiring that your company provide each catastrophic adjuster with an identification badge that is produced from the 2010 badge template provided by the Department.
- PUBLIC ADJUSTER REQUIREMENT
NC adopted the NAIC Public Adjuster Licensing Model Act effective 7/1/2010. View full text of House Bill 1313 (SESSION LAW 2009-565). One of the provisions of the new law requires both resident and non-resident public adjusters to show proof of financial responsibility by providing a $20,000 bond or an irrevocable letter of credit issued by a qualified financial institution in the amount of $20,000. Effective July 1, 2010, existing public adjusters must have on file with the Agent Services Division the evidence of financial responsibility in order to maintain their authority to act as a public adjuster in North Carolina. Agent Services Division sent all public adjusters a request to submit a completed NC Bond-PA Form to the Agent Services Division by May 30, 2010 as proof of the required financial responsibility. An irrevocable letter of credit issued by a qualified financial institution in the amount of $20,000 may be submitted in lieu of the bond requirement. Public adjusters must comply with the financial responsibility requirement or the authority to act as a public adjuster in North Carolina will lapse.
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