What is the primary reason agents cannot represent non-admitted insurance companies in North Carolina?

Agents cannot represent non-admitted insurance companies in North Carolina primarily because the North Carolina Department of Insurance cannot regulate these entities. Non-admitted insurers are not licensed or approved by the state's insurance department, which means they do not adhere to the same regulatory standards as admitted carriers. This lack of oversight raises concerns regarding the protection of policyholders since the state does not guarantee these insurers' policies. The inability of the Department to regulate non-admitted insurers makes it necessary for agents to only represent insurers that are licensed and comply with established state regulations. This ensures that customers have access to protections and recourse in case of disputes or claims issues.

While other factors, such as cost, customer service options, and licensing requirements, may play a role in an agent's decision-making process or the functioning of the insurance market, the primary issue remains the regulatory authority over the insurance products being offered.