If an individual health policy form is found not to comply with North Carolina laws, what action can the insurer take?

The appropriate action for an insurer when an individual health policy form is found not to comply with North Carolina laws is to refrain from issuing that form for any new applications. This is essential because insurance policies must adhere strictly to state regulations; failure to do so undermines consumer protection and can expose the insurer to legal liabilities.

By choosing to not issue the non-compliant form, the insurer safeguards both itself and its policyholders from potential issues that might arise from using a form that does not meet regulatory standards. This action also demonstrates the insurer's commitment to regulatory compliance and ensures that only approved forms, providing the required protections and benefits, are available to new applicants.

In contrast, continuing to issue the form or notifying existing policyholders to switch to a different form could introduce confusion and risk to consumers. Revising the form for compliance is indeed an important step, but such revisions must come before issuing it again; thus, it wouldn’t be appropriate to issue it while it remains non-compliant. Consequently, the best course of action is to stop issuing the problematic form entirely until necessary changes are made.