October 20, 2022

North Carolina Insurance License Exam

Written by: Ethan Peyton

Cartoon woman holding North Carolina Insurance License Exam document

    Passing your North Carolina insurance license exam is a pivotal part of becoming a licensed insurance agent in the state of North Carolina.

    In this guide, we’ll break down the general information that you need to know in order to pass your exam, outline the differences between each examination line, and offer tips on both: how to prepare for your North Carolina insurance licensing exam, and on what to do after you pass.

     

    North Carolina Insurance Exam Basics

    General Information

    The state of North Carolina uses Pearson VUE to administer its insurance agent licensing. This means you can register and book all of your licensing examinations through the Pearson VUE website. Your test can be carried out online or in person.

    Each major insurance line examination is made up of multiple-choice questions and includes both general and state-specific material.

    The general questions test your federal insurance product and agent knowledge, whereas the state-specific questions test you on the North Carolina insurance regulations and laws that you will need to know in order to operate as an insurance agent.

    Score Explanation

    Each licensing examination has multiple versions — known as forms — which are made up of different questions.

    Consequently, your exam can be easier or more difficult than another candidate’s, even if you’re being tested on the same insurance line, on the very same day.

    A statistical procedure known as equating is used to ensure that any differences in form difficulty are therefore accounted for.

    Example:

    Imagine that you have two forms of a Life exam.

    On Form X, the North Carolina Department of Insurance determines that correctly answering 30 questions demonstrates that you have the minimum knowledge necessary to pass your exam and become a licensed agent.

    On Form Y, however, the same level of understanding is demonstrated by answering 25 questions correctly. In this scenario, you would need 30 correct answers to pass on Form X, whereas you would need 25 correct answers to pass on Form Y.

    Following this, a second procedure known as scaling is used to translate this method into a numerical figure, which is then reported to the candidates that fail only.

     

    Cost

    Your North Carolina insurance license exam cost will depend on the number of examinations that you take:

    Examination

    Cost 

    Time Allowed

    Life

    $45

    75 Minutes

    Accident and Health or Sickness

    $45

    75 Minutes

    Property

    $45

    75 Minutes

    Casualty

    $45

    75 Minutes

    Note: You should focus on one exam at a time. This will likely increase the amount of time and effort you can allocate to each examination and should allow you to feel more prepared when you sit your exam.

    Recommended Pre-License Course

    Before taking your insurance exam, we recommend completing a pre-license education course. This is actually a requirement in North Carolina, and can also go a long way in helping you learn all of the information that you will need to know during your exam.
    4.7 out of 5 starsKaplan Education Company

     

    North Carolina Life and Health Insurance Exam

    Below you can find the content outline offered by Pearson VUE.

    We recommend using it as a checklist when working through your pre-license education course. This way, you’ll be absolutely sure that you haven’t missed any topic that you will be tested on later.

    Life Insurance Exam Content Outline

    50 scorable questions, plus 5 pretest questions.

    I. Types of Individual Life Insurance

    1. Term
    2. Whole life insurance
    3. Endowment
    4. Premium variations
    5. Combination policies and variations in the basic forms
    6. Non-Traditional

     

    II. Annuities

    1. The annuity principle 
    2. Annuity features

     

    III. Policy Provisions, Options and Other Features

    1. General provisions
    2. Nonforfeiture values
    3. Loan provisions
    4. Right to defer loan or payment of cash value
    5. Dividends
    6. Settlement options
    7. Beneficiary provision
    8. Premium payment
    9. Additional rights or optional benefits

     

    IV. Other Life Topics

    1. Types of group contracts
    2. Group underwriting
    3. Master policy and certificates
    4. Group Conversion
    5. Tax qualified (sheltered) retirement plans
    6. Business uses of life insurance
    7. Social Security survivors, death, and retirement benefits
    8. Federal income tax treatment of life insurance and annuity premiums, proceeds, dividends, and withdrawal
    9. Legal concepts
    10. Cost comparison methods: interest adjusted cost vs. traditional net cost
    11. Formation of the life insurance contract
    12. Variable life, variable universal life, and variable annuity

     

    V. North Carolina Statutes and Regulations Pertinent to Life

    1. Contract of Insurance
    2. Definitions
    3. Commissioner of Insurance
    4. General Regulations for Insurance
    5. Licensing of Agents, Brokers, Limited Representatives, and Adjusters
    6. Insurance Information & Privacy Protection Act
    7. Unfair Trade Practices
    8. False Pretenses and Cheats
    9. Continuing Education
    10. General Regulations of Business
    11. Regulations of Life Insurance Solicitation
    12. Replacement Regulations
    13. General Regulations
    14. Fraternal Benefit Societies
    15. Life and Health Insurance Guaranty Association
    16. Viaticals

     

    Accident and Health or Sickness Insurance Exam Content Outline

    55 scorable questions, plus 5 pretest questions.

    I. Accident & Health Insurance Policies

    1. Disability income insurance 
    2. Basic Medical Expense insurance
    3. Major Medical insurance
    4. Comprehensive coverage
    5. Hospital indemnity
    6. Managed Care

     

    II. Accident & Health Insurance Provisions

    1. Individual policy mandatory provisions
    2. Individual policy optional provisions
    3. Other provisions

     

    III. Other Accident & Health Topics

    1. Group insurance
    2. Approaches related to group insurance
    3. Social Security disability
    4. Accidental death and dismemberment coverage
    5. Business uses
    6. Federal income taxation
    7. Misrepresentation and concealment
    8. Formation of the health insurance contract

     

    IV. North Carolina Statutes and Regulations Pertinent to Accident & Health

    1. Contract of Insurance
    2. Definitions
    3. Commissioner of Insurance
    4. General Regulations for Insurance
    5. Licensing of Agents, Brokers, Limited Representatives, and Adjusters
    6. Insurance Information & Privacy Protection Act
    7. Unfair Trade Practices
    8. False Pretenses and Cheats
    9. Continuing Education
    10. General Regulations
    11. Nature of Policies
    12. Group Health Insurance Continuation and Conversion Privileges
    13. Fraternal Benefit Societies
    14. Life and Health Insurance Guaranty Association

    We recommend reading our in-depth How to Pass the Life Insurance Exam guide for a better overview.

     

    North Carolina Property and Casualty License Exam

    Below you can find the content outline offered by Pearson VUE.

    You should use this outline as a checklist when working through your pre-license education course in order to ensure that you haven’t missed any topic that you will be tested on later.

    Property Insurance Exam Content Outline

    55 scorable questions, plus 5 pretest questions.

    I. Terms and Concepts

    1. Risk
    2. Hazard
    3. Peril
    4. Economic Loss, indemnity, and insurable interest
    5. Deductible
    6. Direct loss vs. Indirect loss (loss of use)
    7. Named peril vs. open peril
    8. Specific vs. blanket coverage 
    9. Property loss valuation
    10. Mortgagee/loss payee
    11. Misrepresentation, breach of warranty, concealment
    12. Negligence, liability, and supplementary payments
    13. Bodily injury, property damage, personal injury
    14. Accident/Occurrence
    15. Certificate of insurance
    16. Binder
    17. Endorsement
    18. Liberalization clause
    19. First named insured
    20. Monoline vs. package policies
    21. Major classes of policy provisions
    22. Insurance
    23. Application and Subrogation
    24.  Adhesion
    25.  Consent to Rate
    26. Law of Large Numbers

     

    II. Personal Insurance Coverages

    1. Standard Fire Policy
    2. Basic (DP-1), Broad (DP-2), and Special (DP-3) Dwelling property forms
    3. Homeowner’s policies (including amendatory endorsements)
    4. Other personal policies
    5. National Flood Insurance Program
    6. Watercraft/yacht

     

    III. Commercial Insurance Coverages

    1. Building and Personal Property coverage form
    2. Other coverage forms and endorsements
    3. Package policies
    4. Business income coverage form
    5. Extra Expense coverage form
    6. Equipment breakdown (Boiler and machinery coverage) 
    7. Other coverages
    8. Commercial Inland Marine

     

    IV. North Carolina Statutes and Regulations Pertinent to Property Insurance

    1. Contract of Insurance
    2. Commissioner of Insurance
    3. General Regulations for Insurance
    4. Licensing of Agents, Brokers, Limited Representatives and Adjusters
    5. Insurance Information & Privacy Protection Act
    6. Unauthorized Insurers
    7. Unfair Trade Practices
    8. False Pretenses and Cheats
    9. Continuing Education
    10. North Carolina Rate Bureau
    11. General Regulations of Business
    12. Fire Insurance Policies
    13. Essential Property Insurance for Beach Area Property
    14. Fair Access to Insurance Requirements
    15. Post Assessment Insurance Guaranty Association (Guaranty Fund)
    16. Consumer Division

     

    Casualty Insurance Exam Content Outline

    55 scorable questions, plus 5 pretest questions.

    I. Terms and Concepts

    1. Risk
    2. Hazard
    3. Peril
    4. Economic Loss
    5. Indemnity
    6. Deductible
    7. Misrepresentation, breach of warranty, concealment
    8. Negligence, liability, and supplementary payments 
    9. Bodily injury, property damage, personal injury
    10. Accident/Occurrence
    11. Deposit premium/audit
    12. Liability limits: single, split, aggregate
    13. Certificate of insurance
    14. Binder
    15. Endorsement
    16. Liberalization clause
    17. First named insured
    18. Monoline vs. package policies
    19. Major classes of policy provisions
    20. Insurance
    21. Application
    22. Subrogation
    23. Adhesion
    24. Unilateral 
    25. Consent to Rate

     

    II. Personal Insurance Coverages

    1. Personal Auto Policy (North Carolina Rate Bureau Form)
    2. Personal umbrella liability
    3. Watercraft/yacht

     

    III. Commercial Insurance Coverages

    1. General liability insurance 
    2. Commercial automobile insurance
    3. Workers’ compensation and employers liability insurance
    4. Other coverages
    5. Crime coverage forms
    6. Package policies

     

    IV. North Carolina Statutes and Regulations Pertinent to Casualty Insurance

    1. Contract of Insurance
    2. Commissioner of Insurance
    3. General Regulations for Insurance 
    4. Licensing of Agents, Brokers, Limited Representatives, and Adjusters
    5. Insurance Information & Privacy Protection Act
    6. Unauthorized Insurers
    7. Unfair Trade Practices
    8. False Pretenses and Cheats
    9. Continuing Education
    10. North Carolina Rate Bureau
    11. North Carolina Motor Vehicle Reinsurance Facility
    12. Post Assessment Insurance Guaranty Association
    13. Motor Vehicle Liability Policy Defined
    14. Cancellation or Nonrenewal of Motor Vehicle Policy 
    15. Workers’ Compensation Law
    16. Consumer Division

    We recommend reading our Property and Casualty Insurance exam article for a more in-depth overview.

     

    How to Pass the North Carolina Insurance Exam

    Passing your North Carolina insurance exam ultimately comes down to your mindset and degree of preparation.

    We have composed a few helpful exam tips and tricks that should help you perform as well as you can during your exam day.

    Get a Pre-License Course

    Getting a pre-license course can go a long way in helping you get accustomed to the prolific amount of content that you will have to memorize. It is also a legal requirement in North Carolina.

    We recommend Kaplan’s course because it offers a variety of helpful features, including:

    • Online exam simulations
    • Live online training
    • Printable study guides
    • End of chapter reviews

    For more information, we recommend reading our Kaplan Insurance Course Review.

     

    Make Enough Time to Study

    Not leaving enough time to prepare is one of the easiest ways to ensure that you do not pass your exam on your first attempt.

    Remember, there are zero questions on your exam that are based on common sense or critical thinking. All questions are purely factual, and so will relate to how well you understand and remember the content that you have learned.

    We recommend allocating around one to two weeks to prepare for your exam, as this should allow you to go through all of the material at least twice.

     

    Control Test Anxiety

    Even though you cannot control whether you get exam anxiety or not, you can take a few steps when preparing to limit its effect on your performance:

    • Establish a consistent pretest routine — Acclimate yourself to exam conditions by following a specific routine on each practice exam at home. This should help you feel less anxious during your exam day.
    • Get plenty of sleep — Lack of sleep can exacerbate your anxiety and increase your self-doubt. Make sure you are consistently getting a good night’s sleep in the week leading up to your exam.
    • Study effectively — This sounds obvious, but make sure you are actually tailoring your studying to the exam that you are taking. Remember, there are no critical thinking or common sense questions involved.
    • Arrive early — If you are planning to sit your exam in person, we recommend you arrive at least 30 minutes before it’s due to start in order to get used to your surroundings and have time to check in with your center’s administrator.

    For a more in-depth overview of how you can prepare for your North Carolina insurance exam, we recommend reading our How to Pass the Insurance Exam article.

     

    Getting Your North Carolina Insurance License

    Your next steps will depend on whether you actually passed your exam, as well as on whether you plan to get licensed for any additional lines.

    You have 90 days from your pre-licensing course’s completion date or five attempts to pass each exam, depending on which comes first.

    After you have passed your insurance licensing exam, you will need to:

    • Complete a fingerprint and criminal history check
    • Ensure the North Carolina Licensing Office has received your NIPR application fees
    • Wait for your application to be reviewed

    Have a look at our How to Become an Insurance Agent in North Carolina review for more information on all the steps that you will need to take after passing your insurance exam.




    North Carolina Insurance Exams FAQ

    How often do I have to renew my North Caroline insurance license?

    North Carolina requires insurance agents to renew their licenses every two years.

    For more information, see our guide on How to Renew Your Insurance License in North Carolina.

     

    How long is the North Carolina insurance exam?

    This will depend on the exam in question.

    Having said that, the Life, Accident and Health or Sickness, Property, and Casualty exams are all 75 minutes long.

     

    How many times can you take the North Carolina insurance exam?

    After you have filed your NIPR application, you will have six months to pass your insurance exam.

    If you fail, you will be able to retake your insurance exam up to 90 days after the completion of your pre-licensing education, or up to 5 total attempts, depending on which comes first.

     

    How many questions are on the North Carolina insurance exam?

    Even though this will depend on the insurance exam that you are taking, the Life, Accident & Health or Sickness, Property, and Casualty exams are all made up of 55 questions.

    North Carolina Department of Insurance Contact Information

    Mailing Address:

    North Carolina Department of Insurance
    Agent Services
    1204 Mail Service Center
    Raleigh, North Carolina 27699-1204

    Phone: (919) 807-6800

    Fax: (919) 715-3794

    Email: ASD@ncdoi.gov

    Website: http://www.ncdoi.com/

    License Search: North Carolina Insurance License Search and Lookup




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