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 August 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 separate Variable Life & Variable Annuity line of authority PLUS FINRA registration (they are securities). G.S. 58-33-26 requires the producer to satisfy the Commissioner that they have met the FINRA requirements of the Secretary of State — it names no specific series numbers, so treat any particular series pairing as industry practice rather than statute.
- 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 NCDOI's Smart NC and decided by an Independent Review Organization, is BINDING on the insurer. A standard decision is due within 45 days (G.S. 58-50-80); an expedited review is due in not more than three days (§ 58-50-82). Note the statute counts days, not hours — "72 hours" is the NAIC model's phrasing.
- 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 testedThe statute sets no employer-size threshold — North Carolina continuation applies to group hospital, surgical and major medical plans generally. In practice it matters for groups under 20 employees, because federal COBRA governs at 20 and above. The prior-coverage requirement is 3 consecutive months immediately before termination.
- Duration of state continuation coverage testedUp to 18 months
- Election period for state continuation testedNot fewer than 60 days after termination or loss of eligibility. The person must also have been continuously insured under the group plan for the 3 consecutive months immediately before termination.
- Max premium as % of group rate testedNot more than 102% of the full group rate applicable under the group policy.
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 testedPERPETUAL — NCDOI: 'Insurance Producer Licenses do not renew and are valid until surrendered, canceled or revoked.' There is no producer renewal date and no renewal fee. What must be maintained is continuing-education compliance; failure to comply is what causes the license to expire. (Adjusters, business entities and public adjusters renew April 1; surplus lines September 1.)
- What the renewal date keys off (flat term / birthday / birth year) testedThere is no renewal. The clock that matters is the biennial CE compliance cycle, keyed to BOTH birth month and birth-year parity: hours are due by the last day of your birth month, in odd-numbered years if you were born in an odd year and even-numbered years if even. G.S. 58-33-130 authorises the Commissioner to 'establish a staggered system in which the credit hour compliance period is based on the month and year of birth.'
- 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 testedContinuing education is administered by PROMETRIC through Compliance Express — a different vendor from Pearson VUE, which administers the exams and runs NCDOI's outsourced licensing office. Courses and providers must be approved. Producers holding Property or Personal Lines authority must also complete 3 hours of flood (NFIP) CE every 4 years, due in the first compliance period and then every other period.
- Initial long-term care training requirement testedAnnuity producers must satisfy the training obligation carried into North Carolina law by 11 NCAC 12 .0462, which incorporates the NAIC Suitability in Annuity Transactions Model Regulation (#275, 2020 best-interest revision) effective January 1, 2023. Specific North Carolina hour counts for annuity and long-term care producer training could not be confirmed from a primary source — NCDOI and Prometric name only ethics and flood as mandatory line-specific CE.
- What happens if CE is not completed (fine / expiry / cancellation) testedThe license EXPIRES — it does not merely lapse into a grace period. Licensees then have 4 months to make up the hours and pay a $75 reinstatement fee via Prometric Compliance Express; after that the license becomes inactive. Courtesy reminders go out roughly 120 days and 45 days before the compliance date.
- Late renewal / reinstatement tiers testedMiss the CE compliance date and the license expires. A 4-month (120-day) makeup window follows: complete the hours and pay a $75 reinstatement fee through Prometric's Compliance Express. Miss that too and the license goes inactive. A $75 administrative fee can alternatively buy a 30-day extension in lieu of lapse. NOTE: the old inactive-reinstatement path required prelicensing plus re-examination; prelicensing was repealed on 10/1/2025, so the current path needs confirmation from NCDOI.
- 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 present value falls within the $300,000 aggregate per individual life. A structured settlement annuity is covered up to $1,000,000 including cash values, and other unallocated annuity contracts up to $5,000,000 in benefits.
- 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? testedOnly partly. North Carolina departs from the NAIC model on the most-tested point: it applies a single $300,000 per individual life covering ALL life benefits INCLUDING cash values, rather than the model's split of $300,000 death benefit plus a separate $100,000 net cash surrender value. Health benefit plans get $500,000; structured settlement annuities $1,000,000; unallocated annuities $5,000,000.
- Name of the P&C guaranty association testedThe North Carolina Insurance Guaranty Association (NCIGA)
- Per-claim cap tested$500,000 per covered claim (G.S. 58-48-35(a)(1)). Workers' compensation claims are paid IN FULL with no cap. Cybersecurity claims are capped at $500,000 per insured event regardless of the number of claimants. There is also a floor: a claim must exceed $50.00 to be a covered claim (§ 58-48-20(4)).
- Is using the guaranty association as a sales inducement prohibited? testedYes, on the life and health side: G.S. 58-62-86 prohibits using the existence of the Life and Health Insurance Guaranty Association to advertise or induce the purchase of insurance. (No equivalent provision was verified for the property and casualty Insurance Guaranty Association in Article 48.)
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 testedTwo years. G.S. 97-24(a): the right to compensation 'shall be forever barred unless (i) a claim or memorandum of agreement as provided in G.S. 97-82 is filed with the Commission or the employee is paid compensation as provided under this Article within two years after the accident.' Written notice of the accident must also be given to the employer under G.S. 97-22.
- 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 per attempt, for every line, paid to Pearson VUE at the time of reservation by credit card, debit card or voucher — not at the test center. Non-refundable and non-transferable.
- License application fee testedResident: NIPR shows an $82 initial application fee with the $38 state/federal criminal-record-check fee included, plus $50 for each line of authority, plus NIPR's transaction fee. The statutory fees in G.S. 58-33-125(c) are $50 per applicant and $50 for each supplemental line. NON-resident is a different schedule: $50 statutory + $44 processing = $94 per line (eff. 05/06/2024). NCDOI's own resident fee schedule PDF currently returns a 404, so confirm the resident total at the NIPR payment screen.
- 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 testedA SCALED score of 70 on a 0-100 scale. The handbook is explicit: 'The scaled score that is reported to you is neither the number of questions you answered correctly nor the percentage of questions you answered correctly.' A two-part exam's general and state sections are scored TOGETHER — one overall score, no per-part pass requirement, no partial credit and no carryover.
- Minimum age to be licensed tested18
- Is pre-licensing education required? testedNO — repealed. Session Law 2025-45 amended G.S. 58-33-30(d)(1) effective October 1, 2025: 'The Commissioner shall not require an individual who applies for an insurance producer license in this State to complete any specific amount of instruction or any specific course of instruction.' The former 20-hour-per-line requirement (10 hours for Medicare Supplement/Long-Term Care) no longer applies. The EXAM is still required.
- Pre-licensing hours and any exceptions (e.g. Title, adjusters) testedZero hours for Life, Accident & Health or Sickness, Property, Casualty, Personal Lines and Medicare Supplement/Long-Term Care as of October 1, 2025. Approved prelicensing providers still exist and courses remain available, but they are optional. Title, Auto Physical Damage Appraiser, Adjuster, Public Adjuster, Crop Hail Adjuster and Surplus Lines were already exempt before the repeal. NOTE: NCDOI's legacy prelicensing page and its 2010-era exemptions chart both still show the old 20/10-hour grid and are stale.
- 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. NCDOI states that producers licensed before October 1, 2010 need not re-fingerprint when adding lines of authority "unless there are certain lapses of license authority" — without defining the lapse. No primary source states a one-year figure, so confirm with NCDOI if you are returning after a gap.
- Deadline to apply after passing the exam testedInverted from most states. You apply on NIPR BEFORE testing; the application is valid 6 months, and the exam must be passed and the license issued inside that window or you reapply and repay. There is no 'apply within X months of passing' rule.
- 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 the fee or request a refund; inside 48 hours the $45 is forfeited. Appointments may be made up to one calendar day prior to the day you wish to test, subject to availability. A no-show or late arrival forfeits the fee, but an excused-absence request may be submitted within 14 days for illness, a death in the family, a traffic accident, court duty, military duty or a weather emergency.
- 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), issued only to service an existing insurance business after the death or disability of a producer, a key individual's death or disability at a licensed entity, a producer entering active military service, or where the Commissioner deems the public interest best served. The Commissioner MAY waive the examination — the waiver is discretionary, not automatic — and may limit the licensee's authority, require a sponsor, and restrict the licensee to insurers that had appointed the producer at the time of death or onset of disability.