§ 58-33-10. Definitions.
§ 58‑33‑10. Definitions.
As used in this Article, thefollowing definitions apply:
(1) "Agent"means a person licensed to solicit applications for, or to negotiate a policyof, insurance. A person not duly licensed who solicits or negotiates a policyof insurance on behalf of an insurer is an agent within the intent of thisArticle, and thereby becomes liable for all the duties, requirements,liabilities and penalties to which an agent of such company is subject, andsuch company by compensating such person through any of its officers, agents oremployees for soliciting policies of insurance shall thereby accept andacknowledge such person as its agent in such transaction.
(2) "Adjuster"means any individual who, for salary, fee, commission, or other compensation ofany nature, investigates or reports to his principal relative to claims arisingunder insurance contracts other than life or annuity. An attorney at law whoadjusts insurance losses from time to time incidental to the practice of hisprofession or an adjuster of marine losses is not deemed to be an adjuster forpurposes of this Article.
(3) "Broker"means a person who, being a licensed agent, procures insurance for a partyother than himself through a duly authorized agent of an insurer that is licensedto do business in this State but for which the broker is not authorized to actas agent. A person not duly licensed who procures insurance for a party otherthan himself is a broker within the intent of this Article, and thereby becomesliable for all the duties, requirements, liabilities and penalties to whichsuch licensed brokers are subject.
(4) "Businessentity" means a corporation, association, partnership, limited liabilitycompany, limited liability partnership, or other legal entity. "Businessentity" does not mean a sole proprietorship.
(4a) "FINRA"means the Financial Industry Regulatory Authority or any successor entity.
(5) "Homestate" means the District of Columbia and any state or territory of theUnited States in which an insurance producer maintains his or her principalplace of residence or principal place of business and is licensed to act as aninsurance producer.
(6) "Insurance"means any of the kinds of insurance in G.S. 58‑7‑15.
(7) "Insuranceproducer" or "producer" means a person required to be licensedunder this Article to sell, solicit, or negotiate insurance. "Insuranceproducer" or "producer" includes an agent, broker, and limitedrepresentative.
(8) "License"means a document issued by the Commissioner authorizing a person to act as aninsurance producer for the kinds of insurance specified in the document. Thelicense itself does not create any authority, actual, apparent, or inherent, inthe holder to represent or commit an insurance carrier.
(9) "Limited linecredit insurance" includes any type of credit insurance written underArticle 57 of this Chapter, mortgage life, mortgage guaranty, mortgagedisability, automobile dealer gap insurance, and any other form of insuranceoffered in connection with an extension of credit that is limited to partiallyor wholly extinguishing that credit obligation and that the Commissionerdetermines should be designated a form of limited line credit insurance.
(10) "Limited linecredit insurance producer" means a person who sells, solicits, ornegotiates one or more forms of limited line credit insurance coverage toindividuals through a master, corporate, group, or individual policy.
(11) "Limited linesinsurance" means motor vehicle physical damage insurance and titleinsurance, or any other kind of insurance that the Commissioner considersnecessary to recognize for the purposes of complying with G.S. 58‑33‑32(f).
(12) "Limited linesproducer" means a person authorized by the Commissioner to sell, solicit,or negotiate limited lines insurance.
(13) "Limitedrepresentative" means a person who is authorized by the Commissioner tosolicit or negotiate contracts for the particular kinds of insurance identifiedin G.S. 58‑33‑26(g) and which kinds of insurance are restricted inthe scope of coverage afforded.
(14) "Motor vehicledamage appraiser" means an individual who, for salary, fee, commission, orother compensation of any nature, regularly investigates or advises relative tothe nature and amount of damage to motor vehicles located in this State or theamount of money deemed necessary to effect repairs thereto and who is not:
a. An adjuster licensedto adjust insurance claims in this State;
b. An agent for aninsurance company who is not required by law to be licensed as an adjuster;
c. An attorney at lawwho is not required by law to be licensed as an adjuster; or
d. An individual who,incident to his regular employment in the business of repairing defective ordamaged motor vehicles, investigates and advises relative to the nature andamount of motor vehicle damage or the amount of money deemed necessary toeffect repairs thereto.
(15) "Negotiate"means the act of conferring directly with, or offering advice directly to, apurchaser or prospective purchaser of a particular contract of insuranceconcerning any of the substantive benefits, terms, or conditions of thecontract, only if the person engaged in that act either sells insurance orobtains insurance from insurers for purchasers. "Negotiate" does notmean a referral to a licensed insurance agent or broker that does not include adiscussion of specific insurance policy terms and conditions.
(16) "Person"means an individual or a business entity, but does not mean a county, city, orother political subdivision of the State of North Carolina.
(17) "Sell"means to exchange a contract of insurance by any means, for money or itsequivalent, on behalf of an insurance company. "Sell" does not mean areferral to a licensed insurance agent or broker that does not include adiscussion of specific insurance policy terms and conditions.
(18) "Solicit"means attempting to sell insurance or asking or urging a person to apply for aparticular kind of insurance from a particular company. "Solicit"does not mean a referral to a licensed insurance agent or broker that does notinclude a discussion of specific insurance policy terms and conditions.
(19) "Terminate"means the cancellation of the relationship between an insurance producer andthe insurer or the termination of a producer's authority to transact insurance.
(20) "UniformBusiness Entity Application" means the current version of the NAIC UniformBusiness Entity Application for resident and nonresident business entities.
(21) "UniformApplication" means the current version of the NAIC Uniform Application forresident and nonresident producer licensing. (1987, c. 629, s. 1; c. 864, ss. 76, 77; 1987 (Reg.Sess., 1988), c. 975, s. 8; 2001‑203, s. 3; 2007‑507, s. 2; 2009‑566,s. 1.)