PRIA Logo™
North CarolinaHB 7372025-2026 SessionHouseWALLET

AN ACT TO ELIMINATE THE TRAINING COURSE REQUIREMENTS FOR INSURANCE PRODUCER LICENSURE.

Sponsored By: Jennifer Balkcom (Republican), Chris Humphrey (Republican)

Signed by Governor

COMMERCECORPORATIONS, FOR-PROFITCOUNCIL OF STATECRIMESEDUCATIONEMPLOYMENTFEESHOUSINGINSURANCEINSURANCE DEPT

Your PRIA Score

Score Hidden

Personalized for You

How does this bill affect your finances?

Sign up for a PRIA Policy Scan to see your personalized alignment score for this bill and every other piece of legislation we track. We analyze your financial profile against policy provisions to show you exactly what matters to your wallet.

Free to start

Bill Overview

Analyzed Economic Effects

10 provisions identified: 1 benefits, 2 costs, 7 mixed.

Tougher PEO licensing with some relief

PEOs must have at least $50,000 in tangible net worth and positive working capital, or post substitute security. A $100,000 surety bond is required, plus an extra bond equal to any negative working capital. Audited GAAP financials are due within 120 days of the statement date and yearly within 120 days of fiscal year end; quarterly reports may be required within 60 days. Officers and controlling persons must provide certified fingerprints or recent certified background checks. PEO groups under a common parent may get a single group license, but each member guarantees the others’ obligations. A de minimis registration path exists for out‑of‑state PEOs with no NC office and 50 or fewer assigned NC employees, with limited reporting exemptions.

Chargebacks can cancel coverage retroactively

If you dispute and reverse a premium paid by credit card, the law treats it as nonpayment. Your insurer can cancel the policy retroactive to the original payment date, if cancellation is otherwise allowed by law.

Inexperienced‑driver surcharge tracking and penalties

Effective July 1, 2026, insurers must tell the Division when a person subject to an inexperienced‑operator surcharge is added, removed, or when the policy is canceled. The Division reconciles notices and must not record a lapse if earlier notices show continuous responsibility. The Division may suspend a driver’s license for operating without a liability policy that includes the required surcharge.

Producer licensing: training and reciprocity

Beginning October 1, 2025, producer applicants must complete at least 20 hours of training for certain lines. Resident applicants for Medicare supplement or long-term care must complete 10 hours. If you already held the same license lines in your home state, North Carolina does not require prelicensing or an exam. The Commissioner cannot force specific prelicensing courses or hours beyond what the statute sets. Starting the same date, the Department collects exam and registration fees in advance and may sell exam prep materials for a reasonable fee; large contracts get extra oversight.

Rules for claims when insurers fail

A claim is covered by the Guaranty Association if it is over $50 and the claimant’s net worth was $50 million or less on the prior December 31. Workers’ compensation claims are paid in full. For cybersecurity coverage, payments are limited to $500,000 per claim and no more than $500,000 total for all claims from the same event; unearned premium refunds are capped at $10,000 per policy. Courts pause related cases for 120 days after an insolvency so the Association can defend. If an insured’s consolidated net worth exceeded $50 million, the Association can recover what it paid from that insured.

New group capital and liquidity oversight

Beginning January 1, 2026, controlling persons of registered insurers must file an annual group capital calculation with the lead state commissioner, unless exempt. Insurers that meet NAIC scope rules must complete the NAIC liquidity stress test and file reports. The law makes these reports confidential, bars public release of group capital ratios and stress‑test results, and allows limited sharing with regulators and consultants under strict agreements. Form A filers must also promise ongoing annual reports. The statute defines key terms to align with NAIC instructions.

Producers can split commissions with notice

Licensed producers may exchange business and split commissions when both are licensed for the lines involved. They must list both National Producer Numbers on the application and notify the insurer and the customer. Producers must act in good faith that the exchange meets legal rules.

One‑dealer limit for registered salesmen

Starting October 1, 2025, a salesman may be registered with only one dealer, unless dealers share ownership or the Administrator allows more. Dealers and salesmen must promptly report when a salesman starts or stops. The Administrator may require returning the registration or other proof if it cannot be returned.

Small insurance gifts and referral caps

Starting January 1, 2027, insurers and agents may give noncash gifts up to $250 per policy term, run free-entry raffles with prizes up to $250, and offer free or low‑cost value‑added services if offered fairly. Pilot programs can run for up to one year with notice to the Department. Beginning October 1, 2025, unlicensed people may get no more than $50 for referring personal‑lines business; breaking the rule can mean a fine up to $2,000. Title insurance is not subject to the $50 referral cap. The law also cleans up older rebate and trade‑practice sections.

Landlords’ renter‑insurance rules and fee cap

Leases cannot force tenants to buy required insurance from a named carrier or agent. If a tenant does not show proof within three business days, the landlord may buy coverage and charge the actual cost plus an administrative fee up to $50 per year.

Sponsors & Cosponsors

Sponsors

  • Jennifer Balkcom

    Republican • House

  • Chris Humphrey

    Republican • House

Cosponsors

  • Ray Pickett

    Republican • House

Roll Call Votes

All Roll Calls

Yes: 327 • No: 22

House vote • 6/24/2025

HB 737: DOI Omnibus Bill.

Yes: 111 • No: 0 • Other: 8

Senate vote • 6/18/2025

HB 737: DOI Omnibus Bill.

Yes: 45 • No: 0 • Other: 5

Senate vote • 6/18/2025

HB 737: DOI Omnibus Bill.

Yes: 28 • No: 17 • Other: 5

Senate vote • 6/18/2025

HB 737: DOI Omnibus Bill.

Yes: 45 • No: 0 • Other: 5

House vote • 4/30/2025

HB 737: Licensing Course Removal/Insurance Producers.

Yes: 98 • No: 5 • Other: 11

Actions Timeline

  1. Ch. SL 2025-45

    7/1/2025House

  2. Signed by Gov. 7/1/2025

    7/1/2025House

  3. Pres. To Gov. 6/26/2025

    6/26/2025House

  4. Ratified

    6/25/2025House

  5. Ordered Enrolled

    6/24/2025House

  6. Concurred In S Com Sub

    6/24/2025House

  7. Placed On Cal For 06/24/2025

    6/23/2025House

  8. Cal Pursuant 36(b)

    6/19/2025House

  9. Special Message Received For Concurrence in S Com Sub

    6/19/2025House

  10. Special Message Sent To House

    6/19/2025Senate

  11. Engrossed

    6/18/2025Senate

  12. Passed 3rd Reading

    6/18/2025Senate

  13. Passed 2nd Reading

    6/18/2025Senate

  14. Amend Tabled A2

    6/18/2025Senate

  15. Amend Adopted A1

    6/18/2025Senate

  16. Reptd Fav

    6/17/2025Senate

  17. Re-ref Com On Rules and Operations of the Senate

    6/10/2025Senate

  18. Com Substitute Adopted

    6/10/2025Senate

  19. Reptd Fav Com Substitute

    6/10/2025Senate

  20. Re-ref to Commerce and Insurance. If fav, re-ref to Rules and Operations of the Senate

    5/14/2025Senate

  21. Withdrawn From Com

    5/14/2025Senate

  22. Ref To Com On Rules and Operations of the Senate

    5/1/2025Senate

  23. Passed 1st Reading

    5/1/2025Senate

  24. Regular Message Received From House

    5/1/2025Senate

  25. Regular Message Sent To Senate

    5/1/2025House

Bill Text

Related Bills

Back to State Legislation