State RegulationsNC specificDifficulty 1/5
The North Carolina Commissioner of Insurance suspects improper conduct by a licensed producer and needs to examine business records and conduct a hearing. What authority supports these actions?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under Article 2 of Chapter 58 and administrative rules such as 11 NCAC 19 .0103, the Commissioner of Insurance holds independent investigative and hearing powers, including examining records and conducting hearings concerning licensees. The Commissioner acts administratively, so court involvement is not a precondition to an investigation of a licensed producer.
Why the other options are wrong
- A) A court subpoena is not a precondition; the Commissioner's investigative authority is administrative and self-contained.
- C) Hearings are the Commissioner's own function under Article 2; they are not transferred wholesale to an outside body.
- D) Licensed producers are squarely within the Commissioner's oversight — holding a license invites scrutiny, not exemption.
Memory hook
The Commissioner investigates and holds hearings on his own administrative authority.