October 20, 2022

North Dakota Insurance License Exam

Written by: Ethan Peyton

Cartoon woman holding North Dakota Insurance License Exam document

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

    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 Dakota insurance licensing exam, and on what to do after you pass.

     

    North Dakota Insurance Exam Basics

    General Information

    The state of North Dakota uses PSI to administer its insurance agent licensing. This means you can register and book all of your licensing examinations through the PSI 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 Dakota insurance regulations and laws that you will need to know in order to operate as an insurance agent.

    Score Explanation

    After you complete your exam, your score will be displayed on screen and a score report will be emailed to you.

    If you fail, your score report will also include a diagnostic report that you can use to identify your strengths and weaknesses. This can be great when it comes to taking re-examinations.

    Note: You can request a duplicate report by reaching out to PSI at scorereport@psionline.com. You will need to include your full name, candidate ID number, and confirmation number.

     

    Cost

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

    Examination

    Cost 

    Time Allowed

    Life and Annuity

    $64

    150 Minutes

    Accident and Health

    $64

    150 Minutes

    Property

    $64

    150 Minutes

    Casualty

    $64

    150 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 not a requirement in the state of North Dakota, but it can go a long way in helping you get accustomed to the information that you will be expected to know.
    4.7 out of 5 starsKaplan Education Company

     

    North Dakota Life and Health Insurance Exam

    Below you can find the content outline offered by PSI.

    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 on.

    Life and Annuity Insurance Exam Content Outline

    110 questions

    I. Insurance Regulation 

    1. Licensing
    2. State Regulation

     

    II. North Dakota Laws and Regulations Pertaining to Life Insurance and Annuities

    1. Producer and Company Responsibilities
    2. Individual Life Insurance
    3. Group Life Insurance
    4. Annuities

     

    III. Federal Laws and Regulations

    1. Fair Credit Reporting Act — Purpose
    2. National Do Not Call List

     

    IV. General Insurance Concepts

    1. Risk
    2. Classifications of Insurers
    3. Elements of a Contract 
    4. Authority and Powers of Producers
    5. Legal Interpretations Affecting Contracts

     

    V. Life Insurance Basics

    1. Insurable Interest
    2. Personal Uses of Life Insurance
    3. Determining Amount of Personal Life Insurance
    4. Business Uses of Life Insurance
    5. Factors in Premium Determination
    6. Premium Frequency
    7. Field Underwriting
    8. Policy Delivery
    9. Company Underwriting

     

    VI. Types of Life Insurance Policies

    1. Term Life Insurance
    2. Whole Life Insurance
    3. Universal Life
    4. Variable Life
    5. Variable Universal
    6. Indexed Universal Life
    7. Specialized Policies
    8. Group Life Insurance

     

    VII. Life Insurance Policy Provisions, Options, and Riders

    1. Standard Life Insurance Provisions
    2. Beneficiary Designation Options
    3. Types of Beneficiaries
    4. Beneficiary-Related Clauses
    5. Settlement Options
    6. Nonforfeiture Options
    7. Policy Loan and Withdrawal Options
    8. Dividend Options
    9. Disability Riders
    10. Riders Covering Additional Insureds
    11. Riders Affecting Death Benefit Amount
    12. Policy Exclusions

     

    VIII. Annuities

    1. Annuity Principles and Concepts
    2. Immediate versus Deferred Annuities
    3. Annuity Payment Options
    4. Annuity Products
    5. Uses of Annuities

     

    IX. Federal Tax Considerations for Life Insurance

    1. Taxation of Personal Life Insurance and Annuities
    2. Modified Endowment Contracts (MECs)

     

    Accident and Health Content Outline

    110 questions

    I. Insurance Regulation

    1. Licensing
    2. State Regulation

     

    II. North Dakota Laws and Regulations Pertaining to Accident and Health Insurance

    1. Individual Accident and Health insurance policy clauses and provisions
    2. Group Accident and Health insurance policy clauses and provisions
    3. North Dakota requirements 
    4. Medicare Supplements
    5. Long-term Care Insurance
    6. Comprehensive Health Association of North Dakota

     

    III. Federal Laws and Regulations

    IV. General Insurance Concepts

    1. Risk
    2. Elements of a Contract
    3. Authority and Powers of Producers
    4. Legal Interpretations Affecting Contracts

     

    V. Accident and Health Insurance Basics

    1. Field Underwriting
    2. Underwriting Requirements 
    3. Sources of Underwriting
    4. Policy Delivery
    5. Definitions of Perils
    6. Types of Losses and Benefits
    7. Classification of Risks

     

    VI. Individual Accident and Health Insurance Policy Provisions

    1. Uniform Required Provisions
    2. Uniform Optional Provisions
    3. Other General Provisions

     

    VII. Disability Income and Related Insurance

    1. Benefits Determination for Disability
    2. Qualifications of Disability
    3. Individual Disability Income Insurance
    4. Unique Aspects of Individual Disability Income Underwriting
    5. Group Disability Income Insurance
    6. Business Disability Income Insurance
    7. Social Security Disability Income

     

    VIII. Medical Plans

    1. Medical Plan Concepts
    2. Provisions and Clauses
    3. Types of Medical Plans
    4. Cost Containment in Health Care Delivery
    5. Limited Health Insurance Policies
    6. Health Insurance Portability and Accountability Act (HIPAA)
    7. Affordable Care Act (ACA)

     

    IX. Group Health Insurance

    1. Characteristics of Group Health Insurance
    2. Employer Group Health Insurance
    3. COBRA

     

    X. Specialized Health Insurance for Qualified Individuals

    1. Medicare
    2. Medicare Supplement Insurance
    3. Medicaid
    4. Long-Term Care Policies

     

    XI. Federal Tax Considerations for Health Insurance

    1. Health Insurance Premiums and Benefits
    2. Consumer-Driven Health Plans

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

     

    North Dakota Property and Casualty License Exam

    Below you can find the content outline offered by PSI.

    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 on.

    Property Insurance Exam Content Outline

    110 questions

    I. Insurance Regulation

    1. Licensing
    2. State Regulation

     

    II. North Dakota Laws and Regulations Pertaining to Property Insurance

    1. Producer responsibilities
    2. Company responsibilities
    3. Property insurance provisions
    4. North Dakota Insurance Guaranty Association

     

    III. Federal Laws and Regulations

    1. Fair Credit Reporting Act
    2. Flood Insurance Education

     

    IV. General Insurance Concepts

    1. Risk
    2. Classifications of Insurers
    3. Elements of a Contract
    4. Authority and Powers of Producers — Definitions
    5. Legal Interpretations Affecting Contracts

     

    V. Property Insurance Basics

    1. Insurable Interest
    2. Underwriting 
    3. Rate Development
    4. Types of Hazards
    5. Types of Perils
    6. Types of Loss
    7. Loss Valuation
    8. Policy Structure
    9. Policy Clauses
    10. Coinsurance
    11. Specific, Scheduled, and Blanket Insurance
    12. Vacant versus Unoccupied
    13. Named Insured Provisions
    14. Insurer Provisions
    15. Third-party Provisions

     

    VI. Dwelling Policy Concepts

    1. Purpose and Eligibility
    2. Perils Insured Against
    3. Property Coverages
    4. Dwelling Property Conditions
    5. Dwelling Property Exclusions
    6. Dwelling Property Endorsements
    7. Personal Liability Supplement

     

    VII. Homeowners Policy Concepts

    1. Definitions
    2. Eligibility and Purpose
    3. Homeowners Policy Coverage Forms
    4. Section I — Property Coverages
    5. Section II — Liability Coverages
    6. Homeowners Policy Exclusions
    7. Homeowners Policy Conditions
    8. Homeowners Policy Endorsements
    9. Scheduled Personal Property/Personal Articles Floater

     

    VIII. Commercial Property Policies 

    1. Commercial Package Policy
    2. Commercial Policy Components
    3. Commercial Property Forms
    4. Commercial Crime
    5. Commercial Property Endorsements
    6. Commercial Inland Marine — Purpose
    7. Ocean Marine 
    8. Farm Coverage

     

    IX. Businessowners Policy

    1. Characteristics and Purpose
    2. Businessowners Section I — Property
    3. Businessowners Section II — Liability

     

    X. Other Types of Property Insurance — Purpose and General Characteristics

    1. Mobile Home Policy 
    2. Earthquake Insurance 
    3. Flood Insurance

     

    Casualty Insurance Exam Content Outline

    110 questions

    I. Insurance Regulation

    1. Licensing
    2. State Regulation

     

    II. North Dakota Laws and Regulations Pertaining to Casualty Insurance

    1. Producer responsibilities
    2. Company responsibilities
    3. Casualty insurance provisions
    4. Terrorism Risk Insurance Act of 2002 and Extension Act of 2005 (15 USC 6701; S467) Auto Insurance
    5. North Dakota Automobile Insurance Plan
    6. Statute of limitations
    7. North Dakota Insurance Guaranty Association

     

    III. Federal Laws and Regulations

    1. Fair Credit Reporting Act

     

    IV. General Insurance Concepts

    1. Risk
    2. Classifications of Insurers
    3. Elements of a Contract
    4. Authority and Powers of Producers — Definitions
    5. Legal Interpretations Affecting Contracts

     

    V. Casualty Insurance Basics

    1. Damages
    2. Liability
    3. Underwriting (Purpose, Process, Results)
    4. Types of Hazards
    5. Negligence
    6. Accident versus Occurrence
    7. Policy Structure
    8. Policy Clauses
    9. Limits of Liability
    10. Named Insured Provisions
    11. Insurer Provisions

     

    VI. Personal Automobile Policy

    1. Definitions
    2. Personal Injury Protection Definitions
    3. Liability Coverage
    4. Medical Payments Coverage
    5. Uninsured and Underinsured Motorists Coverage
    6. Coverage for Damage to your Automobile
    7. Duties after an Accident or Loss
    8. General Provisions
    9. Endorsements

     

    VII. Commercial Automobile Policy

    1. Commercial Automobile Coverage Forms
    2. Covered Automobiles
    3. Liability
    4. Physical Damage
    5. Exclusions
    6. Conditions
    7. Definitions
    8. Selected Endorsements

     

    VIII. Commercial General Liability

    1. Commercial Policy Components
    2. Commercial General Liability Coverages
    3. Occurrence versus Claims-made
    4. Commercial General Liability Exposures

     

    IX. Other Types of Casualty Insurance

    1. Specialty Liability Insurance
    2. Personal Umbrella, Commercial Umbrella, and Excess Policies
    3. Surety Contracts

     

    X. Workers’ Compensation Laws

    1. Workers’ Compensation Coverages and Benefits
    2. Rating and Job Classification
    3. Workers’ Compensation Definitions
    4. Federal Laws

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

     

    How to Pass the North Dakota Insurance Exam

    Passing your North Dakota 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

    Even though this is not a requirement in the state of North Dakota, 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. 

    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 Dakota insurance exam, we recommend reading our How to Pass the Insurance Exam article.

     

    Getting Your North Dakota 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 can apply for your license up to 12 months after you complete your exam, so if you would like to attempt passing additional insurance line exams before filing your licensing application, you are totally free to do that.

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

    • Complete a fingerprint and background check
    • File your licensing application
    • Wait for your application to be reviewed

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




    North Dakota Insurance Exams FAQ

    How often do I have to renew my license?

    North Dakota requires insurance agents to renew their licenses every two years. The due date for this is the last day of your birth month.

    Example: Jane was first licensed in 2021 and her birthday is April 12. Her renewal would be due April 30, 2023.

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

     

    How long is the North Dakota insurance exam?

    This will depend on the insurance exam in question.

    Having said that, the Life and Annuity, Accident and Health, Property, and Casualty exam are all 150 minutes long.

     

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

    There is no limit on the number of times you can take an insurance licensing exam in North Dakota.

    For exams that are two portions, either portion can be retaken without doing the other. Both portions must be passed within one year of each other if taking a two-portion exam.

     

    How many questions are on the North Dakota insurance exam?

    The Life and Annuity, Property, Accident and Health, and Casualty exams all consist of 110 questions.

    North Dakota Department of Insurance Contact Information

    Mailing Address:

    North Dakota Insurance Department
    600 East Boulevard Avenue
    Bismarck, North Dakota 58505-0320

    Phone: (701) 328-2440

    Fax: (701) 328-4880

    Email: insurance@nd.go

    Website: https://www.nd.gov/ndins

    License Search: North Dakota Insurance License Search and Lookup




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