North Carolina Insurance Exam Guides
Pick the license you're studying for. Each guide covers North Carolina-specific requirements, fees, and official links — plus a free practice exam. Then scroll down to explore the North Carolina exam's state-law material, mapped.
Free study resource
What's actually tested on the North Carolina exam — the state regulations, mapped
Every North Carolina insurance exam reserves a block of questions for North Carolina-specific law — the fees, deadlines, limits, and rules that generic national study guides gloss over. This is that material: 115 facts from the TESTivity North Carolina regulations curriculum, organized the way we teach them. Open a branch, explore, and let the structure do some of the remembering for you.
Every fact below carries its source citation and the date we last verified it (most recently July 2026) — and is re-checked on a schedule. Facts marked tested are ones you should expect to see on the exam.
Life 14 facts
The life insurance rules that differ by state — free look, grace, reinstatement.
- Incontestability period tested2 years — a policy is incontestable after it has been in force for 2 years during the insured's lifetime (except for nonpayment of premium)
- Grace period for individual life tested31 days for any premium after the first, during which the policy stays in force
- Window to reinstate a lapsed policy testedWithin 5 years after the date of premium default, with proof of insurability and payment of overdue premiums (with interest) and any indebtedness (unless the policy was surrendered or its cash value exhausted)
- Max interest chargeable on reinstatement, if capped testedOverdue premiums are paid with interest at the rate specified in the policy — North Carolina fixes no statutory percentage cap
- Suicide exclusion period tested2 years — if death is by suicide within 2 years of issue, the insurer's liability is limited to a refund of the premiums paid
- Free look for individual life tested10 days to return an individual life policy for a full refund (the 'Ten Day Free Look' must appear on the policy)
- Free look for annuities tested10 days for an annuity (the same rule covers each life insurance and annuity policy)
- Free look when a policy is being replaced testedNorth Carolina's free-look rule specifies 10 days and does not fix a separate, longer free-look period for replacements
- Free look for long-term care tested30 days for long-term care, from policy delivery
- Required nonforfeiture options testedCash surrender value, reduced paid-up insurance, and extended term insurance, under North Carolina's Standard Nonforfeiture Law
- Registrations required to sell variable products testedVariable life and variable annuities require the North Carolina Life line plus a Variable Life & Variable Annuity line of authority and FINRA registration (a Series 6 or 7 with a Series 63) — they are securities
- Does the state regulate viatical/life settlements? testedYes — North Carolina regulates viatical and life settlements under Article 58 (N.C.G.S. §58-58-200 et seq.); providers and brokers must be licensed
- Viator's rescission window testedThe owner may rescind within at least 10 business days after receiving the settlement proceeds; if the insured dies during the rescission period, the contract is deemed rescinded
- Has the state adopted the NAIC best interest standard? testedYES — North Carolina adopted the NAIC 2020 best interest annuity standard, effective January 1, 2023, with the four obligations of care, disclosure, conflict-of-interest, and documentation
Health 15 facts
Health coverage rules — continuation, prompt pay, mandates, public programs.
- Has the state expanded Medicaid under the ACA? testedYES — North Carolina expanded Medicaid under the ACA (adults up to 138% of the federal poverty level), effective December 1, 2023
- Effective date of expansion, if expanded testedDecember 1, 2023
- Agency administering Medicaid testedThe North Carolina Department of Health and Human Services (NCDHHS), Division of Health Benefits (NC Medicaid)
- Federal marketplace or state-based exchange testedA FEDERALLY-FACILITATED marketplace (HealthCare.gov) — North Carolina did not build a state exchange
- Name of the state CHIP program testedNC Health Choice was North Carolina's CHIP program; effective April 1, 2023 its children moved into NC Medicaid, so CHIP coverage is now delivered through NC Medicaid
- Clean-claim payment deadline, electronic tested30 calendar days to pay, deny, or notify on a clean claim
- Clean-claim payment deadline, paper tested30 calendar days — North Carolina uses the same deadline for electronic and paper claims
- Does the state distinguish electronic vs paper claims? testedNo — North Carolina applies a single 30-day clean-claim deadline to both electronic and paper claims
- Interest / penalty on late claim payment testedInterest of 18% per year accrues on a clean claim not paid on time
- Is the IRO's external review decision binding on the plan? testedYES — North Carolina's external review, administered by the NCDOI's Smart NC and decided by an Independent Review Organization, is BINDING on the insurer; standard decisions come within 45 days (72 hours expedited)
- Employer size at which federal COBRA applies testedFederal COBRA applies at 20+ employees; North Carolina continuation reaches smaller groups
- Employer size range covered by state continuation testedNorth Carolina continuation applies to fully-insured groups with fewer than 20 employees (not subject to federal COBRA); the person must have been continuously insured for 3 months before the qualifying event
- Duration of state continuation coverage testedUp to 18 months
- Election period for state continuation testedElected after the employer's notice of the right to continue (the person must have had at least 3 consecutive months of prior coverage)
- Max premium as % of group rate testedThe continuant pays the full group premium (employee and former-employer shares)
Auto 12 facts
Auto insurance — minimum limits, fault system, required coverages.
- Fault-based (tort) or no-fault testedTORT (at-fault) — the at-fault driver's liability insurance pays the other party's damages. North Carolina is NOT a no-fault state and has no mandatory PIP.
- Minimum bodily injury liability per person tested$50,000 per person (effective July 1, 2025)
- Minimum bodily injury liability per occurrence tested$100,000 per accident (effective July 1, 2025)
- Minimum property damage liability tested$50,000 per accident (raised from $25,000 effective July 1, 2025)
- The memorizable shorthand (e.g. 30/60/25) tested50/100/50
- Uninsured motorist: mandatory / must be offered & rejectable / not required testedMANDATORY — uninsured motorist coverage is required on every North Carolina auto policy, at the highest liability limits on the policy (UM property damage carries a $100 deductible)
- Underinsured motorist status testedMANDATORY on all policies since July 1, 2025 — underinsured motorist coverage is now required on every policy (previously only when limits exceeded the minimum), at the highest liability limit on the policy, and it stacks on top of the at-fault driver's liability without a set-off
- Personal injury protection status testedNot required — North Carolina is a tort state with no mandatory PIP (medical payments coverage is optional)
- Contributory / pure comparative / modified comparative negligence testedPURE CONTRIBUTORY NEGLIGENCE — any negligence by the claimant that is a proximate cause of the injury bars ALL recovery. North Carolina is one of only a few jurisdictions (with Virginia, Alabama, Maryland, and D.C.) that keep this strict common-law rule.
- The bar percentage, if modified comparative testedNone — North Carolina uses pure contributory negligence, so even 1% claimant fault bars recovery; there is no comparative percentage threshold
- Assigned risk / residual market plan for auto testedThe North Carolina Motor Vehicle Reinsurance Facility — insurers must write eligible risks and may cede high-risk auto business to the Facility, which spreads the losses across all auto insurers (a reinsurance-facility model, not a traditional assigned-risk plan)
- Any alternative to buying liability insurance (e.g. VA's UMV fee) testedLiability insurance is the standard method; large fleet owners may qualify as self-insurers or post a bond or deposit. Note that North Carolina personal auto and homeowners rates are set through the NORTH CAROLINA RATE BUREAU (which files a single set of rates for all insurers), subject to the Commissioner's approval.
CE & Renewal 10 facts
Continuing education and renewal rules — the numbers the exam loves.
- How long a license lasts before renewal testedA North Carolina resident producer license does not expire on a fixed date — it stays in force as long as the producer completes continuing education each biennial compliance cycle and keeps a company appointment
- What the renewal date keys off (flat term / birthday / birth year) testedA biennial CE compliance cycle (which may be staggered by the licensee's month and year of birth); the license lapses for CE non-compliance rather than expiring on a renewal date
- CE hours per renewal period, standard case tested24 CE credit hours every 2 years
- CE hours if holding multiple license types (if different) tested24 total each cycle — the statutory maximum; not stacked per line
- Ethics hours required per period tested3 hours of ethics within each biennial cycle (set by rule, 11 NCAC 06A)
- Limits on who may provide CE credits testedPrometric is the NCDOI's CE administrator (provider approval, course approval, and compliance calculation). Producers holding Property or Personal Lines must also complete a flood-insurance (NFIP) CE course on the required schedule.
- Initial long-term care training requirement testedProducers selling Long-Term Care Partnership policies complete 8 hours of LTC Partnership training; producers selling annuities complete the annuity best-interest training. Exact North Carolina hour counts were not fully confirmed from a primary source this edition.
- What happens if CE is not completed (fine / expiry / cancellation) testedIf CE (including the mandatory ethics and flood hours) is not met by the compliance date, the license expires. Licensees have 4 months to make up the hours and pay a $75 reinstatement fee to Prometric; after that the license becomes inactive and the person must complete pre-licensing and pass the exam again for each line.
- Late renewal / reinstatement tiers testedA 4-month makeup period follows the CE compliance date, with a $75 reinstatement fee; miss it and the license goes inactive, requiring pre-licensing and re-examination
- Any CE exemption (e.g. long-service agents) testedNonresident producers have NO North Carolina CE requirement — the NCDOI verifies good standing in the home state through the NAIC Producer Database
Property 8 facts
Property insurance — rate regulation, residual markets, catastrophe exposure.
- Rate regulation system (file-and-use / prior approval / use-and-file) testedPRIOR APPROVAL via the North Carolina Rate Bureau — the Rate Bureau files a single set of rates for private-passenger auto, residential property (up to 4 units), and workers' compensation on behalf of all member insurers, and the Commissioner reviews, approves, modifies, or disapproves them
- Is insurance credit scoring permitted in personal lines? testedPERMITTED but RESTRICTED — for personal auto and residential property, an insurer may NOT use credit scoring as the sole basis to cancel, refuse to renew, or subject a policy to consent-to-rate, but MAY use it as the sole basis to give a discount; adverse-action notice and re-rating on correction are required
- Does the state have a FAIR Plan? testedYES — North Carolina's FAIR Plan is the North Carolina Joint Underwriting Association (NCJUA), the property insurer of last resort for non-coastal areas
- Name of the FAIR Plan, if any testedThe North Carolina Joint Underwriting Association (NCJUA) — the FAIR Plan for non-coastal areas; the coastal counterpart is the North Carolina Insurance Underwriting Association (the 'Beach Plan')
- Coastal windstorm pool, if any (e.g. TWIA) testedThe North Carolina Insurance Underwriting Association (NCIUA), which runs the Coastal Property Insurance Pool — historically the 'Beach Plan' — the insurer of last resort for the beach and coastal areas
- Dominant catastrophe perils in the state testedHurricanes and coastal windstorm (the Outer Banks and coastal counties), severe thunderstorms and hail, and inland flooding — a significant Atlantic hurricane exposure
- What license you must already hold to write surplus lines testedA surplus lines license, which requires holding a North Carolina property & casualty producer license first (and passing the surplus lines exam)
- Is a diligent-effort search of the admitted market required first? testedYes — a diligent search among admitted insurers actually writing that kind of coverage must fail before a broker may place it in the surplus lines market; North Carolina sets no fixed number of declinations
Guaranty 10 facts
The safety nets when an insurer fails — and their limits.
- Name of the life & health guaranty association testedThe North Carolina Life and Health Insurance Guaranty Association
- Life death benefit limit tested$300,000 — North Carolina applies a single $300,000 AGGREGATE per individual life that covers the death benefit and cash value together (not separate sub-limits)
- Life cash surrender / withdrawal value limit testedIncluded within the $300,000 aggregate per individual life (no separate cash-value sub-limit)
- Annuity benefit limit testedAnnuity benefits fall within the $300,000 aggregate per individual life; a structured settlement annuity is covered up to $1,000,000 per payee, and an unallocated annuity up to $5,000,000 per contract holder
- Health benefit limit tested$500,000 for a health benefit plan; $300,000 for other health coverages
- Aggregate per-individual cap, if any tested$300,000 aggregate per individual life for all life and annuity benefits (rising to $500,000 where a health benefit plan is involved)
- Does the state follow the standard NAIC model limits? testedBroadly yes — North Carolina follows the NAIC model, but applies the life/annuity limits as a single $300,000 aggregate per life (with $500,000 for a health benefit plan) rather than as separate death, cash-value, and annuity sub-limits
- Name of the P&C guaranty association testedThe North Carolina Insurance Guaranty Association (NCIGA)
- Per-claim cap testedUp to $500,000 per covered claim (a 2023/2025 increase from $300,000); workers' compensation claims are paid in full, and returned unearned premium is capped at $10,000 per policy
- Is using the guaranty association as a sales inducement prohibited? testedYes — using the existence of the guaranty association (or its website) to advertise or induce the purchase of insurance is prohibited
Workers Comp 7 facts
Who must carry workers' compensation and what it pays.
- Is workers' compensation mandatory for private employers? testedYes — a covered North Carolina employer must secure workers' compensation by insuring or qualifying to self-insure
- Employee count at which coverage is required testedCoverage is required once an employer regularly employs THREE or more employees (a distinctive North Carolina threshold); some agricultural, domestic, and casual employees are excepted
- Agency administering workers' compensation testedThe North Carolina Industrial Commission
- Temporary total disability wage replacement rate testedTwo-thirds (66 2/3%) of the employee's average weekly wage (not less than $30/week), up to the annual statewide maximum
- Maximum TTD duration testedTemporary total disability is generally capped at 500 weeks from the first date of disability (extended compensation beyond 500 weeks is possible on proof of total loss of wage-earning capacity); the maximum weekly benefit is set annually (about $1,446 for 2026)
- Deadline to file a claim tested2
- Ways an employer may comply (insure / self-insure / group) testedBuy a policy from an authorized carrier, or qualify as an approved individual or group self-insurer
Regulator 5 facts
Who regulates insurance here and what powers the office holds.
- Name of the state insurance regulator testedThe North Carolina Department of Insurance (NCDOI)
- Title of the person who heads it testedCommissioner of Insurance
- How the commissioner is chosen: elected / appointed by governor / appointed by other body testedELECTED by the people of North Carolina to a 4-year term (a statewide Council of State office) — not appointed
- Where the state's insurance law is codified testedChapter 58 of the North Carolina General Statutes (Insurance), with rules in Title 11 of the North Carolina Administrative Code (11 NCAC); producer licensing is in Article 33
- Does the regulator sit somewhere unusual (e.g. inside a constitutional commission)? testedNo — the Department of Insurance is a standalone department; what is unusual is that its Commissioner is a statewide ELECTED official (a member of the Council of State). Note the State Fire Marshal became a SEPARATE office in 2024 — the Commissioner no longer holds that role.
Cancellation 8 facts
When and how policies can be canceled or nonrenewed — heavily tested.
- Initial window during which an insurer may cancel more freely tested60 days — a new homeowners policy in effect fewer than 60 days (and not a renewal) may be canceled for any reason on 15 days' notice; after 60 days, cancellation is limited to enumerated grounds
- Notice days to cancel a homeowners policy inside the initial window testedAt least 15 days' written notice to cancel a homeowners policy, stating the reason (grounds after the first 60 days are limited to nonpayment, misrepresentation, increased hazard, substantial breach, fraud, and the like)
- Notice days to cancel a personal auto policy inside the initial window testedFor a personal auto policy, cancellation for a reason OTHER than nonpayment takes effect at least 60 days after the notice is mailed; the insured may request a Department review
- Notice days for cancellation for nonpayment tested15 days' notice for cancellation for nonpayment of premium (auto and homeowners)
- Notice days for cancellation for other permitted causes testedFor a permitted cause, a personal auto cancellation runs on 60 days' notice, and a homeowners cancellation on 15 days' notice
- Notice days required for nonrenewal testedA homeowners nonrenewal requires at least 45 days' notice before expiration, stating the precise reason; personal auto nonrenewal (a 'termination') is governed by §58-36-85
- Must the reason be stated proactively, on request, or not at all? testedYes — a cancellation or nonrenewal notice must state the reason (and, for auto, the effective date and the right to Department review)
- Restrictions on nonrenewing because of claims (e.g. weather claims excluded) testedNorth Carolina limits personal-auto termination to specific statutory grounds and gives the insured a right to Department of Insurance review; a credit score may not be the sole basis to cancel or nonrenew a personal auto or residential property policy
Licensing 26 facts
How you get and keep the license — exams, fees, applications, background checks.
- Is there a standalone life license/exam? testedYes — a standalone Life exam and line of authority (Life includes fixed annuities)
- Is there a standalone health license/exam? testedYes — a standalone Accident and Health or Sickness exam and line of authority
- Is there a combined life+health license/exam? testedNo — North Carolina does NOT offer a combined Life & Health exam; Life and Accident & Health or Sickness are separate lines with separate exams
- Is there a personal lines license/exam? testedYes — a Personal Lines line (its own exam), covering property and casualty sold to individuals for personal, noncommercial purposes
- Is P&C one combined license, or split into Property and Casualty? testedSPLIT — Property and Casualty are separate lines with separate exams; North Carolina has no single combined Property & Casualty license. A narrower Personal Lines line is also offered.
- Does the life license cover annuities? testedYes — FIXED annuities are sold under the Life line. VARIABLE life and variable annuities require the Life line plus a Variable Life & Variable Annuity line of authority and FINRA registration (they are securities).
- Does the P&C license already include personal lines authority? testedYes — holding both the Property and Casualty lines covers personal-lines risks; standalone Personal Lines is a narrower, personal-only line
- Full list of exam-based agent license types testedNorth Carolina licenses each line separately: Life · Accident and Health or Sickness · Property · Casualty · Personal Lines — plus Medicare Supplement/Long-Term Care, Surplus Lines, Adjuster, and Variable (with FINRA registration)
- Exam administrator (Prometric / PSI / Pearson VUE) testedPearson VUE administers North Carolina producer exams under contract with the NCDOI
- Exam fee tested$45 for each examination attempt
- License application fee tested$94 per line of authority — a $50 licensing fee plus a $44 processing fee (each additional line adds another $50), plus a $5.60 NIPR transaction fee
- Fee per insurer appointment tested$11 per individual insurance producer appointment ($10 for a Medicare supplement / long-term care appointment); paid by the insurer
- Passing score tested70 (a scaled score, reported on a 0-100 scale)
- Minimum age to be licensed tested18
- Is pre-licensing education required? testedYES — 20 hours of pre-licensing education per major line (Life, Accident & Health or Sickness, Property, Casualty, Personal Lines), and 10 hours for Medicare Supplement/Long-Term Care, from an NCDOI-approved provider
- Pre-licensing hours and any exceptions (e.g. Title, adjusters) tested20 hours per major line (Life, Accident & Health or Sickness, Property, Casualty, Personal Lines); 10 hours for Medicare Supplement/Long-Term Care. Classroom or approved online/correspondence both qualify. Pre-licensing (and, for reciprocity, the exam) is WAIVED for holders of approved designations — Life: CLU, ChFC, CFP, CEBS, CIC, LUTCF, FLMI; Health: CEBS, HIA, REBC, RHU; Property/Casualty/Personal Lines: AAI, ARM, CIC, CPCU — and for those licensed for the same line in another state (currently or within the prior 90 days).
- Fingerprints, state police report, or none testedElectronic (live-scan) fingerprinting for a state and federal (SBI/FBI) criminal history check, with a $38 record-check fee paid to the NCDOI
- Who takes the prints / issues the report testedFingerprints are captured by live scan at a local law enforcement agency authorized to submit electronically to the North Carolina State Bureau of Investigation (SBI), which forwards them to the FBI — not a single commercial vendor. The signed SBI release form must be submitted within 30 days of applying.
- How long the background report stays valid testedThe SBI fingerprint release form must be submitted within 30 days of the license application; new fingerprints are required to re-license after a lapse of one year
- Deadline to apply after passing the exam testedThe license application (Pearson VUE eligibility) is valid for 6 months; if you are not licensed within that window, you must reapply through NIPR
- How long a passed exam remains valid testedExam results are tied to the 6-month application/eligibility window — there is no separate published exam-score shelf life
- Waiting period before retaking a failed exam testedYou must wait 24 hours after a failed attempt before scheduling a retake (pay the $45 fee each attempt)
- Notice required to reschedule/cancel without forfeiting the fee testedChange or cancel at least 48 hours before the exam to transfer or refund the fee; reservations must be made at least 24 hours in advance
- Where you apply (Sircon / NIPR / state portal) testedNIPR (nipr.com) — apply online and pay the fees; exam scheduling is through Pearson VUE
- Are temporary licenses available? testedYes — but only for business-servicing situations (the death or disability of a producer, or a producer entering active military service); not a general 'work while you study' license
- Temporary license duration and training requirement testedUp to 180 days (longer for good cause), with no exam, issued only to service an existing insurance business after the death, disability, or military induction of a producer