§ 58-28-13. Placement of insurance business. - North Carolina Statutes

§ 58‑28‑13. Placement of insurance business.

(a)        An insurer shallnot transact insurance business in this State unless it is an admitted insurer,is exempted by this Article, or is otherwise exempted by this Chapter.

(b)        A person shall nottransact insurance business or in this State directly or indirectly act asagent for, or otherwise represent or aid on behalf of another, a nonadmittedinsurer in the solicitation, negotiation, procurement, or effectuation ofinsurance, or renewals of insurance; forwarding of applications; delivery ofpolicies or contracts; inspection of risks; fixing of rates; investigation oradjustment of claims or losses; collection or forwarding of premiums; or in anyother manner represent or assist the insurer in transacting insurance business.

(c)        A person whorepresents or aids a nonadmitted insurer in violation of this section issubject to penalties or restitution, or both, as set forth in this section.

(d)        This section doesnot prohibit employees, officers, directors, or partners of a commercialinsured from acting in the capacity of an insurance manager or buyer in placinginsurance on behalf of the employer, provided that the person's compensation isnot based on buying insurance.

(e)        The venue of an actcommitted by mail or any other medium is at the point where the mattertransmitted by mail or other medium is delivered or issued for delivery ortakes effect.

(f)         The remediesprescribed in this section are not exclusive. Penalties may also be assessedunder Article 63 of this Chapter or G.S. 58‑2‑161, or both.

(g)        If the Commissionerfinds a violation of this section, the Commissioner may order the payment of amonetary penalty after considering the factors in G.S. 58‑28‑14; orpetition the Superior Court of Wake County for an order directing payment ofrestitution as provided in subsection (i) of this section; or both. Themonetary penalty shall not exceed five thousand dollars ($5,000) for the firstoffense and shall not exceed ten thousand dollars ($10,000) for each succeedingoffense. Each day during which a violation occurs constitutes a separateviolation. The clear proceeds of the penalty shall be remitted to the CivilPenalty and Forfeiture Fund in accordance with G.S. 115C‑457.2. Paymentof the civil penalty under this section shall be in addition to payment of anyother penalty for a violation of the criminal laws of this State.

(h)        Upon petition ofthe Commissioner, the Superior Court of Wake County may order the person whocommitted a violation specified in this section to make restitution in anamount that would make whole any person harmed by the violation. The petitionmay be made at any time and also in any appeal of any order issued by theCommissioner.

(i)         Restitution to theDepartment for extraordinary administrative expenses incurred in theinvestigation and hearing of the violation may also be ordered by the court insuch amount that would reimburse the Department for the expenses.

(j)         Nothing in thissection prevents the Commissioner from negotiating a mutually acceptableagreement with any person as to any civil penalty or restitution.

(k)        The AttorneyGeneral of the State of North Carolina at the request of and upon informationfrom the Commissioner shall initiate a civil action in behalf of theCommissioner in any county of the State in which a violation under this sectionoccurs to recover the penalty provided. Service of process upon the nonadmittedinsurer shall be made under G.S. 58‑28‑40.  (2008‑124, s. 3.4.)