State RegulationsNC specificDifficulty 1/5
During an investigation of possible unfair trade practices, which action may the North Carolina Commissioner of Insurance lawfully take?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Article 2 of Chapter 58 vests the Commissioner of Insurance with broad investigative and examination powers, including compelling the attendance of witnesses and the production of books and records, and 11 NCAC 19 .0103 governs the Commissioner's contested-case hearing procedures. These powers support enforcement by the North Carolina Department of Insurance, but they stop short of imprisonment, legislation, or summary action without due process.
Why the other options are wrong
- B) Only courts can impose imprisonment; the Commissioner's authority under Article 2 of Chapter 58 is investigative and administrative.
- C) Statutory amendments require the General Assembly; the Commissioner enforces and interprets Chapter 58 but cannot rewrite it.
- D) License actions require notice and an opportunity for review or hearing, as reflected in the procedural protections of G.S. 58-33-30(g).
Memory hook
The Commissioner investigates and hears — only courts jail, only the legislature writes laws.