NORTH CAROLINA GENERAL ASSEMBLY

1971 SESSION

 

 

CHAPTER 757

SENATE BILL 748

 

 

AN ACT TO AMEND CHAPTER 58 AND CHAPTER 105 OF THE GENERAL STATUTES RELATING TO THE LICENSING AND REGULATION OF MOTOR VEHICLE DAMAGE APPRAISERS.

 

The General Assembly of North Carolina enacts:

 

Section 1.  G.S. 58-9 is hereby rewritten and amended to read as follows:

"§ 58-9.  Powers and duties of Commissioner. — The Commissioner shall:

(1)        See that all laws of this State governing insurance companies, associations, orders or bureaus relating to the business of insurance are faithfully executed, and to that end he shall have power and authority to make rules and regulations, not inconsistent with law, to enforce, carry out and make effective the provisions of this chapter, and to make such further rules and regulations not contrary to any provision of this chapter which will prevent practices injurious to the public by insurance companies, fraternal orders and societies, agents, adjusters and motor vehicle damage appraisers. The Commissioner may likewise, from time to time, withdraw, modify or amend any such regulation.

(2)        Have the power and authority to make and promulgate rules and regulations pertaining to and governing the solicitation of proxies, including financial reporting in connection therewith, with respect to the capital stock or other equity securities of any domestic stock insurance company.

(3)        Furnish to the companies, associations, orders or bureaus required by this chapter to report to him, the necessary blank forms for the statements required, which forms may be changed by him from time to time when necessary to secure full information as to the standing, condition and such other information desired of companies, associations, orders or bureaus under the Insurance Department.

(4)        Receive and thoroughly examine each annual statement required by this chapter and prepare an abstract of each annual statement at the expense of the company, association, order or bureau making the same and receive therefor the sum of four dollars ($4.00). If the annual statement is made in compliance with the laws of this State, the Commissioner shall publish the abstract of the same, at the expense of the company, association, order or bureau making it, in one of the newspapers of the State, which newspaper may be selected by the company, association, order or bureau making the statement, if within thirty days after the filing of the statement, the Commissioner is notified in writing of the name of the paper selected.

(5)        Report in detail to the Attorney General any violations of the laws relative to insurance companies, associations, orders and bureaus or the business of insurance, and he shall have power to institute civil actions or criminal prosecutions either by the Attorney General or such other attorney as the Attorney General may select, for any violation of the provisions of this chapter.

(6)        Upon a proper application by any citizen of this State, give a statement or synopsis of the provisions of any insurance contract offered or issued to such citizen.

(7)        Administer by himself or by his deputy all oaths required in the discharge of his official duty."

Sec. 2.  G.S. 58-39.4 is hereby rewritten and amended to read as follows:

"§ 58-39.4.  Definitions. — (a) An insurance agency is hereby defined to be any person, partnership, or corporation designated in writing by any insurance company lawfully licensed to do business in this State, to act as its agent, with authority to solicit, negotiate, and effect contracts of insurance on behalf of the insurance company through duly licensed agents of such company, and to collect the premiums thereon, or to do any of such acts.

(b)        An insurance broker is hereby defined to be an individual who being a licensed agent, procures insurance through a duly authorized agent of an insurer for which the broker is not authorized to act as agent.

(c)        A general agent is hereby defined to be an individual designated in writing by an insurance company lawfully licensed to do business in this State to act for it as agent or manager and with additional authority to appoint, designate, or supervise local agents within a specified territory.

(d)        A special agent is hereby defined to be an individual other than an officer, manager, or general agent of the insurer, employed by an insurer or general agent to work with and assist agents in soliciting, negotiating, and effectuating insurance in such insurer or in the insurers represented by the general agent.

(e)        A life insurance agent is hereby defined to be a person engaged in the business of selling any or all types of insurance offered by life insurance companies, including life, annuities, health, accident and hospital insurance.

(f)         A credit life insurance agent is hereby defined to be a person engaged in selling any or all of the following types of insurance or collateral security for a loan in connection with which such insurance is written:

(1)        Credit term life;

(2)        Credit accident and health; and

(3)        Hospital insurance.

(g)        An accident and health insurance agent is hereby defined to be a person engaged in the business of selling accident and health insurance and hospital insurance as defined in G.S. 58-72(3).

(h)        A hospital or medical care agent is hereby defined to be a person representing a hospital or medical service association selling prepaid hospital or medical care service.

(i)         A fire and casualty insurance agent is hereby defined to be a person engaged in the business of selling any type of insurance offered by a fire and casualty company.

(j)         A credit insurance agent is hereby defined to be a person engaged in the business of selling credit insurance covering property, the title of which is conveyed or retained as security for a loan, or of selling credit insurance as defined in G.S. 58-72(17), not including credit life, credit accident and health or hospital insurance.

(k)        A physical damage insurance agent is hereby defined to be a person engaged in the business of selling physical damage insurance on a motor vehicle.

(l)         A title insurance agent is hereby defined to be a person engaged in the business of selling title insurance.

(m)       An insurance adjuster is hereby defined to be any individual, who for salary, fee, commission, or other compensation of any nature, as an independent contractor, or as an employee of an independent contractor or as an employee of an insurer or as an adjuster for any insured investigates or reports to his principal relative to claims arising under insurance contracts other than life or annuity. It shall be unlawful and cause for revocation of license for a licensed insurance adjuster to engage in the practice of law.

(n)        An attorney at law who adjusts insurance losses from time to time incidental to the practice of his profession, an adjuster of marine losses, or a special agent who adjusts for companies for which he is licensed as agent is not deemed to be an "adjuster" for the purposes of this chapter.

(o)        In this chapter, unless the context otherwise requires, a motor vehicle damage appraiser is hereby defined to be an individual who for salary, fee, commission, or other compensation of any nature or as an independent contractor or as an employee of an independent contractor regularly investigates or advises relative to the nature and amount of damage to motor vehicles located in this State or the amount of money deemed necessary to effect repairs thereto and is not (1) an adjuster licensed to adjust insurance claims in this State; (2) an agent for an insurance company who is not required by law to be licensed as an adjuster; (3) an attorney at law who is not required by law to be licensed as an adjuster; and (4) a person who incident to his regular employment in the business of actually repairing defective or damaged motor vehicles investigates and advises relative to the nature and amount of motor vehicle damage or the amount of money deemed necessary to effect repairs thereto.

(p)        Nothing in the above definitions shall be construed to prohibit any individual from applying for and upon passing any required examination from receiving license under any or all of the above definitions or classifications.

(q)        A regular salaried officer or employee of a licensed mutual or reciprocal insurer who travels for his insurer in this State shall not be deemed an insurance agent if

(1)        He has other duties than soliciting insurance,

(2)        Any policies of insurance written by him are signed by a licensed insurance agent who is a bona fide resident of this State and

(3)        He receives no commission or other compensation directly dependent upon the amount of business obtained.

(r)        Nothing in this section shall be construed to in any way prevent or restrict any insurance agent, general agent, or adjuster from continuing to engage in the business of selling the same kind and type of insurance as authorized by the license now held by him on or after April 1, 1957, except as provided in G.S. 58-41.1(b).

(aa)      A producer of record is hereby defined to be an individual who is licensed as a fire and casualty insurance agent and as a resident insurance broker under the insurance laws of this State and who is designated by an assigned risk applicant as the producer of record on an assigned risk application."

Sec. 3.  G.S. 58-40 is hereby rewritten and amended to read as follows:

"§ 58-40.  Agents and others must procure license. — (a) Every agent of any insurance company authorized to do business in this State shall be required to obtain annually from the Commissioner of Insurance a license under the seal of his office, showing that the company for which he is agent is licensed to do business in this State and that he has been appointed an agent of such company as defined in G.S. 58-39.4 and is duly authorized to act for such company within the scope of the agency designated on such license.

(b)        Every insurance adjuster shall be required to obtain annually from the Commissioner of Insurance a license under the seal of his office showing that he is duly authorized to act as an adjuster.

(c)        Every motor vehicle damage appraiser shall be required to obtain annually from the Commissioner of Insurance a license under the seal of his office showing that he is duly authorized to act as a motor vehicle damage appraiser.

(d)        Every such agent, motor vehicle damage appraiser, or adjuster, on demand, shall exhibit his license to any officer or to any person from whom he shall solicit insurance or with whom he deals as an adjuster or motor vehicle damage appraiser."

Sec. 4.  Chapter 58 of the General Statutes of North Carolina is hereby amended by adding a new section thereto to be designated as G.S. 58-40.6 and reading as follows:

"§ 58-40.6.  Motor Vehicle Damage Appraisers Qualifications. — An individual desiring to be licensed as a motor vehicle damage appraiser must apply to the Commissioner for issuance of said license on forms prescribed by the Commissioner. Before issuing a license, the Commissioner shall satisfy himself that such license if issued shall serve the public interest and that the individual applying for the license as a motor vehicle damage appraiser: (1) Be twenty-one years of age or over; (2) Be a bona fide resident of and actually reside in this State except as provided in G.S. 58-51.2; (3)Be a trustworthy person; (4) Has not willfully violated any of the insurance laws of this State; (5) Has had special education, training or experience of sufficient duration and extent reasonably to satisfy the Commissioner that he possesses the competence necessary to fulfill the responsibilities of a motor vehicle damage appraiser; and (6) Has advanced the fees provided in G.S. 105-228.7."

Sec. 5.  G.S. 58-42 is hereby rewritten and amended to read as follows:

"§ 58-42.  Revocation of license. — When the Commissioner is satisfied that any insurance agent, general agent, special agent, adjuster, motor vehicle damage appraiser, broker or nonresident broker licensed by this State has willfully violated any of the insurance laws of this State or regulation of the Commissioner, or has willfully overinsured property or has willfully misrepresented any policy of insurance, or has dealt unjustly with or willfully deceived any person in regard to any insurance policies, or has exercised coercion in obtaining an application for or in selling insurance, or, on demand, has failed or refused to pay over or deliver to the company which he represents, or has represented, any money or property in his hands belonging to the company, or has become in any way disqualified according to any of the provisions necessary for obtaining or holding such license as set out in this chapter, or has obtained or attempted to obtain any license through willful misrepresentation or fraud, the Commissioner may immediately suspend his license or licenses and shall forthwith give to such licensee ten days' notice of the charge or charges and of a hearing thereon, and if the Commissioner finds there has been any of the violations hereinbefore set forth, he shall specifically set out such finding and shall revoke the license of such agent, general agent, special agent, adjuster, motor vehicle damage appraiser, broker or nonresident broker and his license for all the companies which he represents in this State. Such agent, general agent, special agent, adjuster, motor vehicle damage appraiser, broker, or nonresident broker shall have the right to have such revocation reviewed as provided in G.S. 58-9.3. For the purposes of investigation under this section the Commissioner shall have all the power conferred upon him by G.S. 58-44.4."

Sec. 6.  G.S. 58-51.2 is hereby rewritten and amended to read as follows:

"§ 58-51.2.  Nonresident adjusters and motor vehicle damage appraisers. — (a) The Commissioner may license a nonresident as an insurance adjuster upon his compliance with all the requirements of this chapter applicable to resident adjusters. No license shall be required of an adjuster licensed as such in another state for the adjustment in this State of a single loss, or of losses arising out of a catastrophe common to all such losses: Provided such adjuster notifies the Commissioner of Insurance in writing prior to the adjusting of such loss or losses. The Commissioner of Insurance may permit an experienced adjuster, who regularly adjusts in another state and who is licensed in such other state (if such state requires a license), to act as adjuster in this State without a North Carolina license, for emergency insurance adjustment work, for a period of not exceeding thirty days, done for an employer who is an insurance adjuster licensed by the State of North Carolina or who is a regular employer of one or more insurance adjusters licensed by the State of North Carolina; provided that the employer shall furnish to the Commissioner a notice in writing immediately upon the beginning of any such "emergency insurance adjustment work".

(b)        The Commissioner may license a nonresident as a motor vehicle damage appraiser upon his compliance with all the requirements of this chapter applicable to resident motor vehicle damage appraisers and may permit an experienced motor vehicle damage appraiser who regularly appraises in another state (if such state requires a license) to act as a motor vehicle damage appraiser in this State without a North Carolina license for emergency motor vehicle damage appraisal work for a period not exceeding 30 days done for an employer who is (1) an insurance adjuster licensed by the State of North Carolina, (2) a motor vehicle damage appraiser licensed by the State of North Carolina, (3) a regular employer of one or more insurance adjusters licensed by the State of North Carolina, or (4) a regular employer of one or more motor vehicle damage appraisers licensed by the State of North Carolina; Provided that the employer shall furnish to the Commissioner a notice in writing immediately upon the beginning of any such emergency appraisal work."

Sec. 7.  G.S. 58-52 is hereby rewritten and amended to read as follows:

"§ 58-52.  Agent, adjuster, etc., acting without a license or violating insurance law. — If any person shall assume to act either as principal, agent, broker, adjuster or motor vehicle damage appraiser without license as is required by law or pretending to be a principal, agent, broker, adjuster or licensed motor vehicle damage appraiser, shall solicit, examine or inspect any risk, or shall examine into, adjust, or aid in adjusting any loss, investigate or advise relative to the nature and amount of damages to motor vehicles or the amount necessary to effect repairs thereto, or shall receive, collect, or transmit any premium of insurance, or shall do any other act in the soliciting, making or executing any contract of insurance of any kind otherwise than the law permits, or as principal or agent shall violate any provision of law contained in this chapter, the punishment for which is not elsewhere provided for, he shall be deemed guilty of a misdemeanor, and on conviction shall pay a fine of not less than one hundred dollars ($100.00) nor more than five hundred dollars ($500.00), or be imprisoned for not less than one nor more than two years, or both, at the discretion of the court."

Sec. 8.  G.S. 58-52.1 is hereby rewritten and amended to read as follows:

"§ 58-52.1.  Process against nonresident licensees. — (a) Each licensed nonresident agent, adjuster, motor vehicle damage appraiser, or broker shall by the act of acquiring such license thereby be deemed to appoint the Commissioner as his attorney to receive service of legal process issued against the agent, adjuster, motor vehicle damage appraiser, or broker in this State upon causes of action arising within this State.

(b)        The appointment shall be irrevocable for as long as there could be any cause of action against the agent, adjuster, motor vehicle damage appraiser, or broker arising out of his insurance transactions in this State.

(c)        Duplicate copies of such legal process against such agent, adjuster, motor vehicle damage appraiser, or broker shall be served upon the Commissioner either by a person competent to serve a summons, or through registered mail. At the time of such service the plaintiff shall pay to the Commissioner a fee of one dollar, taxable as costs in the action to defray the expense of such service.

(d)        Upon receiving such service, the Commissioner shall forthwith send one of the copies of the process, by registered mail with return receipt requested, to the defendant agent, adjuster, motor vehicle damage appraiser, or broker at his last address of record with the Commissioner.

(e)        The Commissioner shall keep a record of the day and hour of service upon him of all such legal process. No proceedings shall be had against the defendant agent, adjuster, motor vehicle damage appraiser, or broker, and such defendant shall not be required to appear, plead or answer until the expiration of forty days after the date of service upon the Commissioner."

Sec. 9.  G.S. 105-228.7 is hereby rewritten and amended to read as follows:

"§ 105-228.7.  Registration fees for agents, brokers and others. — Each and every manager, organizer, adjuster, broker or agent of whatever kind representing in this State any company referred to in this article and every motor vehicle damage appraiser as defined by G.S. 58-39.4 shall on or before the first day of April of each year apply for and obtain from the Commissioner of Insurance an annual certificate of registration, or license, and shall pay for said certificate an annual fee at the following rates, with no additional fee for affixing of seal to the certificate:

Insurance agent

(local for each company represented)                                                                          $5.00

General agent or manager, for each company represented                                                   6.00

Special agent or organizer, for each company represented                                                  5.00

Insurance broker                                                                                                               2.50

Nonresident broker                                                                                                         25.00

Insurance adjuster

(other than adjuster for hail damage to crops)                                                               25.00

Insurance adjuster for hail damage to crops                                                                        5.00

Motor vehicle damage appraiser                                                                                      25.00

The above fees shall be in lieu of any and all other license fees.

In cases where temporary license may be issued pursuant to law the fee for a temporary certificate shall be at the same rates as above specified, and any amounts so paid for temporary license may be credited against the fees required for issuance of the annual license or certificate.

Any person not registered who is required by law or regulation to pass examination as a condition for securing of license shall upon application for registration pay to the Commissioner of Insurance an examination fee of ten dollars ($10.00), and in case more than two examinations in any one kind of insurance are requested, an additional fee of ten dollars ($10.00) shall be paid for each added examination above two for the same kind of insurance. The requirement for examination and examination fee shall not apply to agents for domestic farmers' mutual assessment fire insurance companies or associations specified in G.S. 105‑228.4.

In the event a certificate issued under this section is lost or destroyed the Commissioner of Insurance for a fee of fifty cents ($0.50) may certify to its issuance, giving number, date, and form, which may be used by the original party named thereon in lieu of the annual certificate. There shall be no charge for the seal attached to such certification."

Sec. 10.  This act shall become effective on April 1, 1972.

In the General Assembly read three times and ratified, this the 5th day of July, 1971.