State RegulationsNC specificDifficulty 1/5
A licensing candidate is reading the North Carolina Insurance Code and wants to know which provision supplies the general definitions that apply to terms used throughout Chapter 58, unless the context requires otherwise.
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under G.S. 58-1-5, the definitions set out in that section apply to the terms used throughout Chapter 58 unless the context in which a word is used requires a different meaning. Locating the general definitions section is practical for producers: when a statute in Chapter 58 uses a defined term, the meaning comes from G.S. 58-1-5 rather than from ordinary usage.
Why the other options are wrong
- A) G.S. 58-1-10 governs the conformity of insurance contracts with the Code; it is not the definitions section.
- C) G.S. 58-2-5 establishes the Department of Insurance and the office of the Commissioner of Insurance, not general definitions.
- D) 11 NCAC 19 .0103 contains administrative rules on the Commissioner's hearings and procedures, not statutory definitions.
Memory hook
1-5 gives words their life: definitions live at 58-1-5.