State RegulationsNC specificDifficulty 1/5
The Commissioner of Insurance opens an investigation into an accident and health producer's sales practices in North Carolina. Which investigative authority may the Commissioner exercise?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Under the Commissioner's powers in Article 2 of Chapter 58, administered in part through rules such as 11 NCAC 19 .0103, the Commissioner of Insurance may conduct investigations, issue subpoenas, administer oaths, and hold hearings to enforce the North Carolina Insurance Code. These powers let the North Carolina Department of Insurance compel testimony and documents without first winning a court case, while license discipline still requires notice and an opportunity for a hearing.
Why the other options are wrong
- A) The Commissioner's investigative and subpoena powers under Article 2 and 11 NCAC 19 .0103 operate administratively; a prior Superior Court judgment is not required.
- B) Discipline requires notice and an opportunity for a hearing; a summary suspension without due process is beyond the Commissioner's authority.
- C) The Commissioner of Insurance, not the Attorney General, is the primary regulator charged with investigating and hearing insurance matters under Article 2.
Memory hook
The Commissioner can subpoena, swear, and sit as judge — notice still required.