reglab/statecodes huggingface dataset:
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 58 - Life Insurance and Viatical Settlements. › § 58-58-280 - Confidentiality.

§ 58-58-280. Confidentiality.
(a) Information and evidence provided under G.S. 58-58-270 or G.S. 58-58-275 or obtained by the Commissioner in an investigation of suspected or actual fraudulent viatical settlement acts shall be privileged and confidential, is not a public record, and is not subject to discovery or subpoena in a civil or criminal action.
(b) Subsection (a) of this section does not prohibit release by the Commissioner of documents and evidence obtained in an investigation of suspected or actual fraudulent viatical settlement acts:
(1) In administrative or judicial proceedings to enforce laws administered by the Commissioner;
(2) To federal, state, or local law enforcement or regulatory agencies, to an organization established for the purpose of detecting and preventing fraudulent viatical settlement acts, or to the NAIC; or
(3) At the discretion of the Commissioner, to a person in the business of viatical settlements that is aggrieved by a fraudulent viatical settlement act.
(c) Release of documents and evidence under subsection (b) of this section does not abrogate or modify the privilege granted in subsection (a) of this section. (2001-436, s. 3.)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 58 - Life Insurance and Viatical Settlements. › § 58-58-285 - Other law enforcement or regulatory authority.

§ 58-58-285. Other law enforcement or regulatory authority.
This Part does not:
(1) Preempt the authority or relieve the duty of other law enforcement or regulatory agencies to investigate, examine, and prosecute suspected violations of law.
(2) Prevent or prohibit a person from disclosing voluntarily information concerning viatical settlement fraud to a law enforcement or regulatory agency other than the Commissioner.
(3) Limit the powers granted elsewhere by the laws of this State to the Commissioner to investigate and examine possible violations of law and to take appropriate action against wrongdoers. (2001-436, s. 3.)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 58 - Life Insurance and Viatical Settlements. › § 58-58-290 - Injunctions; civil remedies; cease and desist orders.

§ 58-58-290. Injunctions; civil remedies; cease and desist orders.
(a) In addition to the penalties and other enforcement provisions of this Part, if any person violates this Part or any rule implementing this Part, the Commissioner may seek an injunction in a court of competent jurisdiction and may apply for temporary and permanent orders that the Commissioner determines are necessary to restrain the person from committing the violation.
(b) Any person damaged by the acts of a person in violation of this Part may bring a civil action against the person committing the violation in a court of competent jurisdiction.
(c) The Commissioner may issue, in accordance with G.S. 58-63-32, a cease and desist order upon a person that violates any provision of this Part, any rule or order adopted by the Commissioner, or any written agreement entered into with the Commissioner. The cease and desist order may be subject to judicial review under G.S. 58-63-35.
(d) When the Commissioner finds that an activity in violation of this Part presents an immediate danger to the public that requires an immediate final order, the Commissioner may issue an emergency cease and desist order reciting with particularity the facts underlying the findings. The emergency cease and desist order is effective immediately upon service of a copy of the order on the respondent and remains effective for 90 days. If the Commissioner begins nonemergency cease and desist proceedings, the emergency cease and desist order remains effective, absent an order by a court of competent jurisdiction in accordance with G.S. 58-63-35.
(e) In addition to the penalties and other enforcement provisions of this Part, any person who violates this Part is subject to G.S. 58-2-70. (2001-436, s. 3.)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 58 - Life Insurance and Viatical Settlements. › § 58-58-300 - Authority to adopt rules.

§ 58-58-300. Authority to adopt rules.
The Commissioner may:
(1) Adopt rules implementing this Part.
(2) Establish standards for evaluating reasonableness of payments under contracts for persons who are terminally or chronically ill, including standards for the amount paid in exchange for assignment, transfer, sale, or devise of a benefit under a policy.
(3) Establish appropriate licensing requirements, fees, and standards for continued licensure for providers.
(4) Require a bond or other mechanism for financial accountability for providers and brokers.
(5) Adopt rules governing the relationship and responsibilities of insurers, providers, and brokers during the viatication of a policy. (2001-436, s. 3; 2011-284, s. 57.)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 58 - Life Insurance and Viatical Settlements. › § 58-58-310 - Effective date.

§ 58-58-310. Effective date.
A provider or broker transacting business in this State, pursuant to G.S. 58-58-42, on the effective date of this Part may continue to do so pending approval of the provider's or broker's application for a license as long as the application is filed with the Commissioner no later than July 1, 2002. If the application is disapproved, then the provider or broker shall cease transacting viatical business in this State. (2001-436, s. 3.)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 58 - Life Insurance and Viatical Settlements. › § 58-58-320 - Purpose.

§ 58-58-320. Purpose.
(a) The purpose of this Part is to set forth standards to protect service members of the Armed Forces from dishonest and predatory insurance sales practices by declaring certain identified practices to be false, misleading, deceptive, or unfair.
(b) Nothing in this Part shall be construed to create or imply a private cause of action for a violation of this Part. (2007-535, s. 1.)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 58 - Life Insurance and Viatical Settlements. › § 58-58-325 - Scope.

§ 58-58-325. Scope.
This Part applies only to the solicitation or sale of any life insurance or annuity product by an insurer or insurance producer to an active duty service member of the Armed Forces. (2007-535, s. 1; 2011-183, s. 44.)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 58 - Life Insurance and Viatical Settlements. › § 58-58-330 - Exemptions.

§ 58-58-330. Exemptions.
(a) This Part does not apply to solicitations or sales involving:
(1) Credit insurance.
(2) Group life insurance or group annuities where there is no in-person, face-to-face solicitation of individuals by an insurance producer or where the contract or certificate does not include a side fund.
(3) An application to the existing insurer that issued the existing policy or contract when (i) a contractual change or a conversion privilege is being exercised, (ii) the existing policy or contract is being replaced by the same insurer pursuant to a program filed with and approved by the Commissioner, or (iii) a term conversion privilege is exercised among corporate affiliates.
(4) Contracts offered by Servicemembers' Group Life Insurance or Veterans' Group Life Insurance, as authorized by 38 U.S.C. § 1965, et seq.
(5) Individual stand-alone health policies, including disability income policies.
(6) Life insurance contracts offered through or by a nonprofit military association, qualifying under section 501(c)(23) of the Internal Revenue Code (IRC), and that are not underwritten by an insurer.
(7) Contracts used to fund:
a. An employee pension or welfare benefit plan that is covered by the Employee Retirement and Income Security Act (ERISA).
b. A plan described by sections 401(a), 401(k), 403(b), 408(k) or 408(p) of the Internal Revenue Code, if established or maintained by an employer.
c. A government or church plan defined in section 414 of the Internal Revenue Code, a government or church welfare benefit plan, or a deferred compensation plan of a state or local government or tax exempt organization under section 457 of the Internal Revenue Code.
d. A nonqualified deferred compensation arrangement established or maintained by an employer or plan sponsor.
e. Settlements of or assumptions of liabilities associated with personal injury litigation or any dispute or claim resolution process.
f. Prearranged funeral contracts.
(b) Nothing in this Part shall be construed to abrogate the ability of nonprofit organizations (and/or other organizations) to educate members of the Armed Forces in accordance with Department of Defense "DoD Instruction 1344.07 - Personal Commercial Solicitation on DoD Installations" or successor directive.
(c) For purposes of this Part, general advertisements, direct mail, and Internet marketing do not constitute "solicitation." Telephone marketing does not constitute "solicitation," provided the caller explicitly and conspicuously discloses that the product concerned is life insurance and makes no statements that avoid a clear and unequivocal statement that life insurance is the subject matter of the solicitation. Provided, however, nothing in this subsection shall be construed to exempt an insurer or insurance producer from this Part in any in-person, face-to-face meeting established as a result of the "solicitation" exemptions identified in this subsection. (2007-535, s. 1; 2011-183, s. 45.)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 58 - Life Insurance and Viatical Settlements. › § 58-58-340 - Practices declared false, misleading, deceptive, or unfair on a military installation.

§ 58-58-340. Practices declared false, misleading, deceptive, or unfair on a military installation.
(a) The following acts or practices when committed on a military installation by an insurer or insurance producer with respect to the in-person, face-to-face solicitation of life insurance are declared to be false, misleading, deceptive, or unfair:
(1) Knowingly soliciting the purchase of any life insurance product "door to door" or without first establishing a specific appointment for each meeting with the prospective purchaser.
(2) Soliciting service members in a group or "mass" audience or in a "captive" audience where attendance is not voluntary.
(3) Knowingly making appointments with or soliciting service members during their normally scheduled duty hours.
(4) Making appointments with or soliciting service members in barracks, day rooms, unit areas, or transient personnel housing or other areas where the installation commander has prohibited solicitation.
(5) Soliciting the sale of life insurance without first obtaining permission from the installation commander or the commander's designee.
(6) Posting unauthorized bulletins, notices, or advertisements.
(7) Failing to present DD Form 2885, Personal Commercial Solicitation Evaluation, to service members solicited or encouraging service members solicited not to complete or submit a DD Form 2885.
(8) Knowingly accepting an application for life insurance or issuing a policy of life insurance on the life of an enlisted member of the Armed Forces without first obtaining for the insurer's files a completed copy of any required form that confirms that the applicant has received counseling or fulfilled any other similar requirement for the sale of life insurance established by regulations, directives, or rules of the Department of Defense or any branch of the Armed Forces.
(b) The following acts or practices when committed on a military installation by an insurer or insurance producer constitute corrupt practices, improper influences or inducements and are declared to be false, misleading, deceptive, or unfair:
(1) Using Department of Defense personnel, directly or indirectly, as a representative or agent in any official or business capacity with or without compensation with respect to the solicitation or sale of life insurance to service members.
(2) Using an insurance producer to participate in any Armed Forces sponsored education or orientation program. (2007-535, s. 1; 2011-183, s. 47.)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 58 - Life Insurance and Viatical Settlements. › § 58-58-350 - Procedures and sanctions.

§ 58-58-350. Procedures and sanctions.
(a) The provisions of G.S. 58-63-20, 58-63-25, 58-63-32, 58-63-35, 58-63-50, and 58-63-60 apply to this Part and are incorporated into this Part by reference.
(b) A violation of this Part is a ground for license suspension, probation, revocation, nonrenewal, or denial under G.S. 58-33-46 and subjects the violator to G.S. 58-2-70. (2007-535, s. 1.)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 58 - Life Insurance and Viatical Settlements. › § 58-58-370 - No preemption of Unclaimed Property Act.

§ 58-58-370. No preemption of Unclaimed Property Act.
Nothing in this Part shall be construed to amend, modify, or supersede the North Carolina Unclaimed Property Act, Article 4 of Chapter 116B of the General Statutes, including the authority of the North Carolina Department of State Treasurer to examine records and conduct an audit. Specifically, nothing in this Part shall restrict the authority of the North Carolina Department of State Treasurer to request or access records of an insurer and conduct an examination of the insurer's records under Chapter 116B of the General Statutes. (2015-236, s. 1.)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 58 - Life Insurance and Viatical Settlements. › § 58-58-400 - Noncompliance may constitute unfair claims settlement practice.

§ 58-58-400. Noncompliance may constitute unfair claims settlement practice.
A pattern of failures to meet the requirements of this Part may constitute an unfair claims settlement practice under G.S. 58-3-100(a)(5) and G.S. 58-63-15. Nothing in this Part shall be construed to create or imply a private cause of action for a violation of this Part. (2015-236, s. 1.)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 59 - Registered Policies. › § 58-59-1 - Deposits to secure registered policies.

§ 58-59-1. Deposits to secure registered policies.
Any life insurance company, incorporated under the laws of this State, may deposit with the Commissioner securities of the kind authorized for the investment of the funds of life insurance companies, which shall be legally transferred by it to him as Commissioner and his successors for the common benefit of all the holders of its "registered" policies and annuity bonds issued under the provisions of this Article; and these securities shall be held by him and his successors in office in trust for the purposes and objects specified herein.
All securities offered to the Commissioner for deposit under this section shall be received and held pursuant to regulations promulgated by the Commissioner. (1905, c. 504, s. 12; Rev., s. 4780; 1909, c. 920, ss. 1, 2; 1911, c. 140, s. 1; 1917, c. 191, s. 2; C.S., s. 6467; 1945, c. 379.)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 59 - Registered Policies. › § 58-59-5 - Additional deposits may be required.

§ 58-59-5. Additional deposits may be required.
Each company which has made deposits herein provided for shall make additional deposits from time to time, as the Commissioner prescribes, in amounts of not less than five thousand dollars ($5,000) and of such securities as are described in the preceding section [G.S. 58-59-1], so that the admitted value of the securities deposited shall equal the net value of the registered policies and annuity bonds issued by the company, less such liens not exceeding such value as the company has against it. The Commissioner shall annually value or cause to be valued such policies and shall prepare an estimate based upon probable changes in the minimum amounts to be kept on deposit for each month of the ensuing year. (1905, c. 504, s. 15; Rev., s. 4781; 1909, c. 920, s. 3; 1911, c. 140, s. 2; 1917, c. 191, s. 3; C.S., s. 6468; 1945, c. 379; 1991, c. 720, s. 4.)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 59 - Registered Policies. › § 58-59-10 - Withdrawal of deposits.

§ 58-59-10. Withdrawal of deposits.
Any such company whose deposits exceed the net value of all registered policies and annuity bonds it has in force, less such liens not exceeding such value as the company holds against them, may withdraw such excess or it may withdraw any of such securities at any time by depositing in their place others of equal value and of the character authorized by law; and as long as such company remains solvent and keeps up its deposits, as herein required, it may collect the interest and coupons on the securities deposited as they accrue; and any life insurance company may withdraw such securities by and with the consent of the policyholder only; and in case of such withdrawal, the certificate of registration in each case must be surrendered for cancellation, or a receipt from the policyholder, satisfactory to the Commissioner, must be produced before such withdrawal of deposits shall be allowed. (1905, c. 504, s. 18; Rev., s. 4782; 1911, c. 134; C.S., s. 6469; 1991, c. 720, s. 4.)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 59 - Registered Policies. › § 58-59-15 - Record of securities kept by Commissioner; deficit made good.

§ 58-59-15. Record of securities kept by Commissioner; deficit made good.
The Commissioner shall keep a careful record of the securities deposited by each company, and when furnishing the annual certificates of value required in this Article, he may enter thereon the face and market value of the securities deposited by such company. If at any time it appears from such certificate or otherwise that the value of securities held on deposit is less than the net value of the registered policies and annuity bonds issued by such companies, it is not lawful for the Commissioner to execute the certificate on any additional policies or annuity bonds of such company until it has made good the deficit. If any company fails or neglects to make such deposits for 60 days the Commissioner may suspend its license to do business until such deposit be made. (1905, c. 504, s. 16; Rev., s. 4784; C.S., s. 6471; 1945, c. 379; 1991, c. 720, s. 4.)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 59 - Registered Policies. › § 58-59-20 - Registered policies certified.

§ 58-59-20. Registered policies certified.
After making the deposits provided for in this Article no company may issue a policy of insurance or endowment or an annuity bond known or designated as "registered" unless it has upon its face a certificate in the following words: "This policy or annuity bond is registered and secured by pledge of bonds, stocks, or securities deposited with this Department as provided by law," which certificate shall be signed by the Commissioner and sealed with the seal of his office. Such policies and bonds shall be known as "registered" policies and annuity bonds, and a sample copy of such kind, class, and issue shall be kept in the office of the Commissioner. All policies and bonds of each kind and class issued, and the copies thereof, filed in the office of the Commissioner must have imprinted thereon some appropriate designating letter, combination of letters or terms identifying the special forms of contract, together with the year of adoption of such form, and whenever any change or modification is made in the form of contracts, policy, or bond, the designating letters or terms and year of adoption thereon shall be changed accordingly. (1905, c. 504, s. 13; Rev., s. 4785; C.S., s. 6472; 1991, c. 720, s. 4.)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 59 - Registered Policies. › § 58-59-25 - Power of Commissioner in case of insolvency.

§ 58-59-25. Power of Commissioner in case of insolvency.
If at any time the affairs of a life insurance company which has deposited securities under the provisions of this Article, in the opinion of the Commissioner, appear in such condition as to render the issuing of additional policies and annuity bonds by such company injurious to the public interest, the Commissioner may take such proceedings against the company as are authorized by law to be taken against other insolvent companies, and said companies are in all respects subject to the provisions of law affecting other companies. (1905, c. 504, s. 20; Rev., s. 4788; C.S., s. 6475; 1991, c. 720, s. 4.)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 59 - Registered Policies. › § 58-59-30 - Fees for registering policies.

§ 58-59-30. Fees for registering policies.
Every company making deposits under the provisions of this Article must pay to the Commissioner for each certificate on registered policies or annuity bonds, including seal, a fee of fifty cents (50¢) for those exceeding ten thousand dollars ($10,000) in amount and twenty-five cents (25¢) for all under ten thousand dollars ($10,000) in amount, except policies for one hundred dollars ($100.00) and not exceeding five hundred dollars ($500.00) the fee shall be fifteen cents (15¢); for policies of one hundred dollars ($100.00) or less the fee shall be ten cents (10¢). (1905, c. 504, s. 21; Rev., s. 4789; C.S., s. 6476; 1945, c. 379; 1991, c. 720, s. 4.)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 60 - Standards of Disclosure for Annuities and Life Insurance. › § 58-60-1 - Short title; purpose.

§ 58-60-1. Short title; purpose.
(a) This Part may be cited as the "Life Insurance Disclosure Act".
(b) The purpose of this Part is to require insurers to deliver to purchasers of life insurance, information which will improve the buyer's ability to select the most appropriate plan of life insurance for the buyer's needs, improve the buyer's understanding of the basic features of the policy which has been purchased or which is under consideration and to improve the ability of the buyer to evaluate the relative costs of similar plans of life insurance.
This Part does not prohibit an insurer from using additional material that is not in violation of Articles 1 through 64 of this Chapter nor any other statute or regulation. (1979, c. 447; 2005-234, s. 1.3.)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 60 - Standards of Disclosure for Annuities and Life Insurance. › § 58-60-5 - Scope; exemptions.

§ 58-60-5. Scope; exemptions.
(a) Except as otherwise provided in this Part, this Part applies to any solicitation, negotiation or procurement of life insurance occurring within this State. This Part applies to any issuer of a life insurance contract, including fraternal benefit societies.
(b) Unless otherwise specifically included, this Part does not apply to:
(1) Individual and group annuity contracts.
(2) Credit life insurance.
(3) Group life insurance (except for disclosures relating to preneed funeral contracts or prearrangements; these disclosure requirements shall extend to the issuance or delivery of certificates as well as to the master policy).
(4) Life insurance policies issued in connection with pension and welfare plans as defined by and that are subject to the federal Employee Retirement Income Security Act of 1974 (ERISA).
(5) Variable life insurance under which the death benefits and cash values vary in accordance with unit values of investments held in a separate account.
(c) The policy summary in this Part is not required for policies that are sold subject to rules adopted by the Commissioner for life insurance illustrations. (1979, c. 447; 1998-211, s. 14; 2005-234, s. 1.4.)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 60 - Standards of Disclosure for Annuities and Life Insurance. › § 58-60-15 - Disclosure requirements.

§ 58-60-15. Disclosure requirements.
(a) The insurer shall provide to all prospective purchasers a Buyer's Guide and a Policy Summary prior to accepting any applicant's initial premium deposit, unless the policy for which application is made contains an unconditional refund provision of at least 10 days or unless the Policy Summary contains such an unconditional refund offer, in which event the Buyer's Guide and Policy Summary must be delivered with the policy or prior to delivery of the policy.
(b) The insurer shall provide a Buyer's Guide and a Policy Summary to any prospective purchaser upon request.
(c) In the case of policies whose Equivalent Level Death Benefit does not exceed five thousand dollars ($5,000), the requirement for providing a Policy Summary will be satisfied by delivery of a written statement containing the information described in G.S. 58-60-10(7), subdivisions b, c, d, e1, e2, e3, f, g, j, and k. (1979, c. 447; 1993, c. 553, s. 21.)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 60 - Standards of Disclosure for Annuities and Life Insurance. › § 58-60-20 - General rules relating to solicitation.

§ 58-60-20. General rules relating to solicitation.
(a) Each insurer subject to this Part shall maintain at its home office or principal office a complete file containing one copy of each document authorized by the insurer for use pursuant to this Part. Such file shall contain one copy of each authorized form for a period of three years following the date of its last authorized use.
(b) An insurance producer shall inform the prospective purchaser, prior to commencing a life insurance sales presentation, that he is acting as a life insurance agent and inform the prospective purchaser of the full name of the insurance company which he is representing to the buyer. In sales situations in which an insurance producer is not involved, the insurer shall identify its full name.
(c) Terms such as financial planner, investment advisor, financial consultant, or financial counseling shall not be used in such a way as to imply that the insurance producer is generally engaged in an advisory business in which compensation is unrelated to sales unless such is actually the case.
(d) Any reference to policy dividends must include a statement that dividends are not guaranteed.
(e) A system or presentation which does not recognize the time value of money through the use of appropriate interest adjustments shall not be used for comparing the cost of two or more life insurance policies. Such a system may be used for the purpose of demonstrating the cash-flow pattern of a policy if such presentation is accompanied by a statement disclosing that the presentation does not recognize that, because of interest, a dollar in the future has less value than a dollar today.
(f) A presentation of benefits shall not display guaranteed and nonguaranteed benefits as a single sum unless they are shown separately in close proximity thereto.
(g) A statement regarding the use of the Life Insurance Cost Indexes shall include an explanation to the effect that the indexes are useful only for the comparison of the relative costs of two or more similar policies.
(h) A Life Insurance Cost Index which reflects dividends or an Equivalent Level Annual Dividend shall be accompanied by a statement that it is based on the insurer's current dividend scale and is not guaranteed.
(i) For the purposes of this Part, the annual premium for a basic policy or rider, for which the insurer reserves the right to change the premium, shall be the maximum annual premium. (1979, c. 447; 2005-234, ss. 1.7, 1.8; 2022-46, s. 14(yyy).)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 60 - Standards of Disclosure for Annuities and Life Insurance. › § 58-60-25 - Adoption of Buyer's Guide; requirements.

§ 58-60-25. Adoption of Buyer's Guide; requirements.
Any insurer soliciting life insurance in this State on or after December 1, 1979, shall adopt and use a Buyer's Guide, and the adoption and use by an insurer of the Buyer's Guide promulgated by the National Association of Insurance Commissioners in the NAIC Model Life Insurance Solicitation Regulations shall be in compliance with the requirements of this Part. (1979, c. 447; 2005-234, s. 1.9.)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 60 - Standards of Disclosure for Annuities and Life Insurance. › § 58-60-30 - Failure to comply.

§ 58-60-30. Failure to comply.
The failure of an insurer to provide or deliver a Buyer's Guide, or a Policy Summary as provided in G.S. 58-60-15(a) and (b) shall constitute an omission which misrepresents the benefits, advantages, conditions or terms of an insurance policy within the meaning of G.S. 58-58-40 and Article 63 (Unfair Trade Practice Act) of this Chapter. (1979, c. 447.)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 60 - Standards of Disclosure for Annuities and Life Insurance. › § 58-60-95 - Purpose; intent; and scope.

§ 58-60-95. Purpose; intent; and scope.
(a) The purpose of this Part is to establish standards that ensure meaningful information is provided to the purchasers of small face amount policies.
(b) This Part applies to any life insurance policy or certificate with an initial face amount of fifteen thousand dollars ($15,000) or less.
(c) This Part does not apply to:
(1) Variable life insurance.
(2) Individual and group annuity contracts.
(3) Credit life insurance.
(4) Group or individual policies of life insurance issued to members of an employer group or other permitted group where:
a. Every plan of coverage was selected by the employer or other group representative;
b. Some portion of the premium is paid by the group or through payroll deduction; and
c. Group underwriting or simplified underwriting is used.
(5) Policies and certificates where an illustration has been provided pursuant to the requirements of Title 11, Chapter 4, Section .0500 of the North Carolina Administrative Code. (2005-234, s. 1.10.)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 60 - Standards of Disclosure for Annuities and Life Insurance. › § 58-60-100 - Disclosure requirements.

§ 58-60-100. Disclosure requirements.
(a) An insurer issuing a small face amount policy where, over the term of the policy, the cumulative policy premiums paid may exceed the face amount of the policy, shall clearly and prominently disclose, on or before policy delivery, the length of time until the cumulative policy premiums paid may exceed the face amount of the policy.
(b) If an insurer is required to provide a disclosure under subsection (a) of this section, the insurer shall clearly and prominently disclose, on or before policy delivery, available premium payment plan and product alternatives. If no alternatives exist, the insurer shall clearly and prominently disclose that there are no such alternatives.
(c) Cumulative premiums shall include premiums paid for riders. However, the face amount shall not include the benefits attributable to the riders. (2005-234, s. 1.10.)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 60 - Standards of Disclosure for Annuities and Life Insurance. › § 58-60-105 - Insurer duties.

§ 58-60-105. Insurer duties.
The insurer and its producers shall have a duty to provide information to policyholders or certificate holders that ask questions about the disclosure statement. (2005-234, s. 1.10.)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 60 - Standards of Disclosure for Annuities and Life Insurance. › § 58-60-125 - Purpose; intent; scope.

§ 58-60-125. Purpose; intent; scope.
(a) The purpose of this Part is to provide standards for the disclosure of certain minimum information about annuity contracts to protect consumers and foster consumer education. This Part specifies the minimum information that must be disclosed and the method for disclosing it in connection with the sale of annuity contracts. The goal of this Part is to ensure that purchasers of annuity contracts understand certain basic features of annuity contracts.
(b) This Part applies to all group and individual annuity contracts and certificates except:
(1) Registered or nonregistered variable annuities or other registered products.
(2) Immediate and deferred annuities that contain no nonguaranteed elements.
(3) Annuities used to fund any of the following:
a. An employee pension plan, which is covered by the Employee Retirement Income Security Act (ERISA).
b. A plan described by section 401(a), 401(k), or 403(b) of the Internal Revenue Code, where the plan, for purposes of ERISA, is established or maintained by an employer.
c. A governmental or church plan defined in section 414 of the Internal Revenue Code or a deferred compensation plan of a state or local government or a tax-exempt organization under section 457 of the Internal Revenue Code.
d. A nonqualified deferred compensation arrangement established or maintained by an employer or plan sponsor.
e. Structured settlement annuities.
f. Charitable gift annuities.
g. Funding agreements.
(c) This Part shall apply to annuities used to fund a plan or arrangement that is funded solely by contributions an employee elects to make, whether on a pretax or after-tax basis, and where the insurance company has been notified that plan participants may choose from among two or more fixed annuity providers, and there is a direct solicitation of an individual employee by a producer for the purchase of an annuity contract. As used in this subsection, direct solicitation shall not include any meeting held by a producer solely for the purpose of educating or enrolling employees in the plan or arrangement. (2005-234, s. 1.11.)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 60 - Standards of Disclosure for Annuities and Life Insurance. › § 58-60-135 - Standards for the disclosure document and buyer's guide.

§ 58-60-135. Standards for the disclosure document and buyer's guide.
(a) Where the application for an annuity contract is taken in a face-to-face meeting, the applicant, at or before the time of application, shall be given both the disclosure document described in G.S. 58-60-140 and a copy of the buyer's guide.
(b) Where the application for an annuity contract is taken by means other than in a face-to-face meeting, the applicant shall be sent both the disclosure document and the buyer's guide no later than five business days after the completed application is received by the insurer.
(1) With respect to an application received as a result of a direct solicitation through the mail:
a. Providing a buyer's guide in a mailing inviting prospective applicants to apply for an annuity contract shall be deemed to satisfy the requirement that the buyer's guide be provided no later than five business days after receipt of the application.
b. Providing a disclosure document in a mailing inviting a prospective applicant to apply for an annuity contract shall be deemed to satisfy the requirement that the disclosure document be provided no later than five business days after receipt of the application.
(2) With respect to an application received via the Internet:
a. Taking reasonable steps to make the buyer's guide available for viewing and printing on the insurer's Web site shall be deemed to satisfy the requirement that the buyer's guide be provided no later than five business days after receipt of the application.
b. Taking reasonable steps to make the disclosure document available for viewing and printing on the insurer's Web site shall be deemed to satisfy the requirement that the disclosure document be provided no later than five business days after receipt of the application.
(3) A solicitation for an annuity contract provided in other than a face-to-face meeting shall include a statement that the proposed applicant may contact the Department for a free annuity buyer's guide. In lieu of the foregoing statement, an insurer may include a statement that the prospective applicant may contact the insurer for a free annuity buyer's guide.
(c) Where the buyer's guide and disclosure document are not provided at or before the time of application, a free-look period of no less than 15 days shall be provided for the applicant to return the annuity contract without penalty. This free-look period shall run concurrently with any other free-look period provided under State law or regulation. (2005-234, s. 1.11.)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 60 - Standards of Disclosure for Annuities and Life Insurance. › § 58-60-140 - Contents of disclosure document.

§ 58-60-140. Contents of disclosure document.
At a minimum, all of the following information shall be included in the disclosure document required under this Part:
(1) The generic name of the contract, the company product name, if different, and form number, and the fact that it is an annuity.
(2) The insurer's name and address.
(3) A description of the contract and its benefits, emphasizing its long-term nature, including the following, if appropriate:
a. The guaranteed, nonguaranteed, and determinable elements of the contract, and their limitations, if any, and an explanation of how they operate.
b. An explanation of the initial crediting rate, specifying any bonus or introductory portion, the duration of the rate, and the fact that rates may change from time to time and are not guaranteed.
c. Periodic income options both on a guaranteed and nonguaranteed basis.
d. Any value reductions caused by withdrawals from or surrender of the contract.
e. How values in the contract can be accessed.
f. The death benefit, if available, and how it will be calculated.
g. A summary of the federal tax status of the contract and any penalties applicable on withdrawal of values from the contract.
h. The impact of any rider, such as a long-term care rider.
(4) The specific dollar amount or percentage charges and fees with an explanation of how they apply.
(5) Information about the current guaranteed rate for new contracts that contains a clear notice that the rate is subject to change.
Insurers shall define terms used in the disclosure statement in language that facilitates the understanding by a typical person within the segment of the public to which the disclosure statement is directed. (2005-234, s. 1.11.)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 60 - Standards of Disclosure for Annuities and Life Insurance. › § 58-60-145 - Report to contract owners.

§ 58-60-145. Report to contract owners.
For annuities in the payout period with changes in nonguaranteed elements and for the accumulation period of a deferred annuity, the insurer shall provide each contract owner with a report, at least annually, on the status of the contract that contains at least all of the following information:
(1) The beginning and end dates of the current report period.
(2) The accumulation and cash-surrender value, if any, at the end of the previous report period and at the end of the current report period.
(3) The total amounts, if any, that have been credited, charged to the contract value, or paid during the current report period.
(4) The amount of outstanding loans, if any, as of the end of the current report period. (2005-234, s. 1.11.)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 61 - Regulation of Interest Rates on Life Insurance Policy Loans. › § 58-61-1 - Purpose.

§ 58-61-1. Purpose.
The purpose of this Article is to permit and set guidelines for life insurers to include in life insurance policies issued after the effective date of this Article a provision for periodic adjustment of policy loan interest rates. Nothing in this Article shall be construed to prohibit a life insurer from issuing a policy that contains only the provision specified in G.S. 58-61-10(a)(1) with respect to policy loan interest rates. (1981, c. 841, s. 1.)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 61 - Regulation of Interest Rates on Life Insurance Policy Loans. › § 58-61-5 - Definitions.

§ 58-61-5. Definitions.
For purposes of this Article the "Published Monthly Average" means:
(1) The Monthly Average of the Composite Yield on Seasoned Corporate Bonds as published by Moody's Investors Service, Inc., or any successor thereto; or
(2) In the event that the Monthly Average of the Composite Yield on Seasoned Corporate Bonds is no longer published, a substantially similar average, established by regulation issued by the Commissioner. (1981, c. 841, s. 1.)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 61 - Regulation of Interest Rates on Life Insurance Policy Loans. › § 58-61-15 - Applicability to existing policies.

§ 58-61-15. Applicability to existing policies.
The provisions of this Article shall not apply to any insurance contract issued before September 1, 1981. (1981, c. 841, s. 1.)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 62 - Life and Health Insurance Guaranty Association. › § 58-62-6 - Purpose.

§ 58-62-6. Purpose.
(a) The purpose of this Article is to protect, subject to certain limitations, the persons specified in G.S. 58-62-21(a) against failure in the performance of contractual obligations, under life, health, and annuity policies, plans, or contracts specified in G.S. 58-62-21(b), because of the delinquency of the member insurer that issued the policies, plans, or contracts.
(b) To provide this protection, an association of member insurers is created to pay benefits and to continue coverages as limited herein, and members of the Association are subject to assessment to provide funds to carry out the purpose of this Article. (1991, c. 681, s. 56; 2018-120, s. 1.1(a).)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 62 - Life and Health Insurance Guaranty Association. › § 58-62-11 - Construction.

§ 58-62-11. Construction.
This Article shall be liberally construed to effect the purpose under G.S. 58-62-6, which shall constitute an aid and guide to interpretation. (1991, c. 681, s. 56.)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 62 - Life and Health Insurance Guaranty Association. › § 58-62-26 - Creation of the Association.

§ 58-62-26. Creation of the Association.
(a) There is created a nonprofit legal entity to be known as the North Carolina Life and Health Insurance Guaranty Association. All member insurers shall be and remain members of the Association as a condition of their authority to transact insurance or a health maintenance organization business in this State. The Association shall perform its functions under the Plan established and approved under G.S. 58-62-46 and shall exercise its powers through the Board established under G.S. 58-62-31. For purposes of administration and assessment, the Association shall maintain two accounts:
(1) The life insurance and annuity account, which includes the following subaccounts:
a. Life insurance account.
b. Annuity account, which shall include annuity contracts owned by a governmental retirement plan or its trustee established under Section 401, 403(b), or 457 of the United States Internal Revenue Code 1954, but shall otherwise exclude unallocated annuities.
c. Unallocated annuity account, which shall exclude contracts owned by a governmental retirement benefit plan or its trustee established under Section 401, 403(b), or 457 of the United States Internal Revenue Code 1954.
(2) The health account.
(b) The Association is under the immediate supervision of the Commissioner and is subject to the applicable provisions of this Article. Meetings or records of the Association may be opened to the public upon majority vote of the Board. (1991, c. 681, s. 56; 2018-120, s. 1.1(d).)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 62 - Life and Health Insurance Guaranty Association. › § 58-62-31 - Board of directors.

§ 58-62-31. Board of directors.
(a) The Board shall consist of not less than seven nor more than 11 member insurers serving terms as established in the Plan. The members of the Board shall be selected by member insurers, subject to the Commissioner's approval. Vacancies on the Board shall be filled for the remaining period of the term by a majority vote of the remaining Board members, subject to the Commissioner's approval. In addition, two persons who must be public representatives shall be appointed by the Commissioner to the Board. A public representative may not be an officer, director, or employee of an insurance company or health maintenance organization or any person engaged in insurance or health maintenance organization business. To select the initial Board, and initially organize the Association, the Board's predecessor shall notify all member insurers of the time and place of the organizational meeting. In determining voting rights at the organizational meeting, each member insurer is entitled to one vote in person or by proxy. If the Board is not selected within 60 days after notice of the organizational meeting, the Commissioner may appoint the initial members.
(b) In approving selections or in appointing members to the Board, the Commissioner shall ensure that all member insurers are fairly represented between member insurers that write primarily life insurance and annuity contracts and member insurers that write primarily health benefit plans.
(c) Members of the Board may be reimbursed from the assets of the Association for expenses they incur as members of the Board, but they shall not otherwise be compensated by the Association for their services. (1991, c. 681, s. 56; 2018-120, s. 1.1(e).)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 62 - Life and Health Insurance Guaranty Association. › § 58-62-46 - Plan of operation.

§ 58-62-46. Plan of operation.
(a) The Association shall submit to the Commissioner a Plan and any amendments necessary or suitable to assure the fair, reasonable, and equitable administration of the Association. The Plan and any amendments shall become effective upon the Commissioner's written approval or unless the Commissioner has not disapproved it within 30 days.
(b) If the Association fails to submit a suitable Plan within 120 days after the effective date of this Article or if at any time thereafter the Association fails to submit suitable amendments to the Plan, the Commissioner shall, after notice and hearing, adopt rules that are necessary or advisable to carry out the provisions of this Article. The rules shall continue in force until modified by the Commissioner or superseded by a Plan submitted by the Association and approved by the Commissioner.
(c) All member insurers shall comply with the Plan.
(d) The Plan shall, in addition to other requirements specified in this Article, establish all of the following:
(1) Procedures for handling the assets of the Association.
(2) The amount and method of reimbursing members of the Board under G.S. 58-62-31.
(3) Regular places and times for meetings, including telephone conference calls, of the Board.
(4) Procedures for records to be kept of all financial transactions of the Association, its agents, and the Board.
(5) Procedures whereby selections for the Board will be made and submitted to the Commissioner.
(6) Any additional procedures for assessments under G.S. 58-62-41.
(7) Additional provisions necessary or proper for the execution of the powers and duties of the Association.
(8) Procedures whereby a director may be removed for cause, including in the case where a member insurer director becomes a delinquent insurer.
(9) Policies and procedures for the Board to address conflicts of interests.
(e) The Plan may provide that any or all powers and duties of the Association, except those under G.S. 58-62-36(r) and G.S. 58-62-41, may be delegated to a corporation, association, or other organization that performs or will perform functions similar to those of the Association, or its equivalent, in two or more states. Such a corporation, association, or organization shall be reimbursed for any payments made on behalf of the Association and shall be paid for its performance of any function of the Association. A delegation under this subsection is effective only with the approval of both the Board and the Commissioner, and may be made only to a corporation, association, or organization that extends protection not substantially less favorable and effective than that provided by this Article. (1991, c. 681, s. 56; 2018-120, s. 1.1(h).)