State RegulationsNC specificDifficulty 1/5
During an investigation conducted by the North Carolina Department of Insurance, which of the following may the Commissioner of Insurance do?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Article 2 of Chapter 58 and Rule 11 NCAC 19 .0103 vest the Commissioner of Insurance with broad investigative and hearing powers, including examining books and records, compelling the attendance of witnesses, and holding administrative hearings to enforce the insurance laws. These powers operate on the Commissioner's own initiative, which is what makes NCDOI oversight effective between legislative sessions.
Why the other options are wrong
- A) Investigations are an administrative function of the NCDOI; they are not delegated to grand juries.
- C) The Commissioner's tools are administrative - examination, hearings, orders, and penalties - not arrest, which is a law-enforcement function.
- D) The Commissioner may open an investigation on his or her own initiative; no prior court finding of a violation is required.
Memory hook
The Commissioner investigates, hears, and compels - no court permission needed to look.