Key Takeaways
- The North Carolina Department of Insurance (NCDOI) regulates all P&C insurance activities under NC General Statutes Chapter 58
- The Commissioner of Insurance is ELECTED by North Carolina voters for a 4-year term
- North Carolina uses a "prior approval" rate system for most P&C lines, requiring NCDOI approval before rates take effect
- NCDOI has authority over licensing, rate review, market conduct, and consumer protection
- North Carolina is one of only 11 states where the Insurance Commissioner is elected
Last updated: January 2026
North Carolina Department of Insurance (NCDOI)
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The North Carolina Department of Insurance (NCDOI) is the state agency responsible for regulating the Property & Casualty insurance industry in North Carolina.
The Commissioner of Insurance
The Commissioner of Insurance is:
- ELECTED by North Carolina voters (one of only 11 states with an elected Commissioner)
- Serves a 4-year term
- Responsible for enforcing NC General Statutes Chapter 58
- Authorized to adopt regulations, review rates, investigate violations, and discipline licensees
Commissioner Powers for P&C Insurance
| Power | Description |
|---|---|
| Licensing | Issue, suspend, and revoke producer licenses |
| Rate Review | Prior approval required for most P&C rates |
| Market Conduct | Examine insurer business practices |
| Enforcement | Investigate and prosecute violations |
| Consumer Protection | Handle complaints and protect policyholders |
| Rulemaking | Adopt rules under NC Administrative Code |
Exam Tip: North Carolina is one of only 11 states where the Insurance Commissioner is ELECTED. This is a frequently tested fact.
North Carolina Rate Regulation
North Carolina uses prior approval for most P&C lines:
Rate Systems by Line
| Line of Insurance | Rate System |
|---|---|
| Personal Auto | Prior approval (Rate Bureau) |
| Homeowners | Prior approval |
| Commercial Lines | File and use (some lines) |
| Workers' Compensation | Rate Bureau sets rates |
| Title Insurance | NCDOI sets rates |
Prior Approval
Under North Carolina prior approval:
- Rates must be filed and approved BEFORE use
- NCDOI reviews rates for compliance
- Rates must not be excessive, inadequate, or unfairly discriminatory
- NC Rate Bureau files rates for personal auto and some lines
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Test Your Knowledge
How is the North Carolina Commissioner of Insurance selected?
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Test Your Knowledge
What rate system does North Carolina use for personal auto insurance?
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