State RegulationsNC specificDifficulty 1/5
Which statement best describes the authority of the Commissioner of Insurance in North Carolina?
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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 the administrative rules such as 11 NCAC 19 .0103, the Commissioner of Insurance holds broad investigative and hearing powers: the department may examine insurers' books and affairs, compel testimony and documents, and conduct administrative hearings, issuing orders such as cease-and-desist commands and license actions to enforce Chapter 58. Criminal incarceration, by contrast, is a judicial function.
Why the other options are wrong
- A) Rate actions are subject to statutory procedures and hearing rights; the Commissioner cannot impose final rates on every line without process.
- C) The Commissioner is an administrative regulator; imprisonment for violations is imposed by the courts, not by the department.
- D) Fee collection is a minor part of the role; the Commissioner's core authority includes examination, investigation, hearings, and enforcement orders.
Memory hook
The Commissioner investigates, hears, and orders - only courts jail.