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North Carolina Property Insurance — Requirements & Free Practice

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Licenses, application pathways and examination requirements

Each license and applicant pathway has its own requirements and exemptions. Choosing practice questions does not determine your eligibility.

Personal Lines Agent

Separate major line authorizing noncommercial property and casualty coverage sold to individuals and families.

Licensing authority: North Carolina Department of Insurance · Application information

Reinstatement within four months after continuing education lapse
No examination is required for this applicant pathway.
Course Assessments
Any examination required to complete an approved CE course is an unnamed course requirement under 11 NCAC 06A .0802(f).
Deadline
Complete the continuing education requirements and pay the $75 administrative fee within four months after the end of the previous compliance year.

Official no-examination sources

Effective from 2026-09-22.

Reinstatement after the four month continuing education restoration period
North Carolina Personal Lines Agent Examination
Board Statement
Licensees must complete pre-licensing and pass the state exam for each line of authority to be issued a new license.
Deadline
The continuing-education reinstatement requirements were not satisfied within four months; pass the appropriate licensing examination.
Prelicensing Conflict
The Department continuing-education webpage still says to complete prelicensing and pass the state exam. The statute prohibits requiring a specific prelicensing course; the examination duty remains.
Continuation of active license without disciplinary examination
No examination is required for this applicant pathway.
Active License
Producer license continues until suspended or revoked; no annual renewal application is required.
Compliance
Maintain company appointments where required and satisfy applicable continuing education.
Disciplinary Examination
This route applies without a Commissioner order under G.S. 58-33-30(e)(2); that separate discretionary examination pathway is unresolved below.

Official no-examination sources

Effective from 2026-09-22.

Nonresident issuance by reciprocity
No examination is required for this applicant pathway.
Application
Submit the prescribed request and fees with the home-state application or a completed Uniform Application.
Home License
Currently holds the corresponding home-state resident license in good standing.
Other Examinations
Any examination underlying another jurisdiction license is applicant evidence, not a North Carolina requirement leaf.
Reciprocity
Home state awards nonresident producer licenses to North Carolina residents on a reciprocal basis.

Official no-examination sources

Effective from 2026-09-22.

Reinstatement after relocation to a new home jurisdiction
No examination is required for this applicant pathway.
Application
If restoration is not completed as provided by G.S. 58-33-30(h)(2)a1, submit a new application.
Relocation
Obtain a new home-state license and file a change of address within 60 days after issuance of that license.

Official no-examination sources

Effective from 2026-09-22.

Reinstatement after home state license restoration
No examination is required for this applicant pathway.
Lapse
North Carolina nonresident license lapses 30 days after home-state license loses good standing.
Restoration
Within 30 days following that lapse, establish entitlement to licensure and home-state license reinstatement or reissuance.

Official no-examination sources

Effective from 2026-09-22.

Reinstatement after ordinary license lapse shorter than one year
No examination is required for this applicant pathway.
Lapse
Prior Personal Lines license lapsed for less than one year and has a status other than Inactive or Expired due to CE noncompliance.

Official no-examination sources

Effective from 2026-09-22.

Reapplication after surrender or termination beyond the examination waiver period
North Carolina Personal Lines Agent Examination
Prior Termination
Surrender or termination has lasted beyond the period for examination waiver; meet the requirements for a previously unlicensed applicant.
Short Lapse Exception
The Department chart exempts ordinary non-CE lapses shorter than one year; this route applies outside that exemption.
Resident initial issuance by examination
North Carolina Personal Lines Agent Examination
Application
Submit the Uniform Application electronically through NIPR, pay applicable fees, and provide documents required by screening answers.
Appointment
Company appointment is required to act as an agent for that insurer.
Character
Applicant must not have committed a ground for probation, suspension, nonrenewal or revocation under G.S. 58-33-46.
Fingerprints
Resident initial applications require fingerprints and criminal history review; reapplications after a lapse of one year require fingerprints as stated by the Department.
Minimum Age
Applicant must be at least 18 years old.
Prelicensing
G.S. 58-33-30(d)(1), as amended effective October 1, 2025, prohibits requiring a specific amount or course of prelicensing instruction.
Resident issuance based on prior same line home state license
No examination is required for this applicant pathway.
Application
Submit the resident Uniform Application and applicable fees; resident fingerprint requirements apply.
Board Instruction
The handbook asks that the former home-state license be cancelled within 90 days of the North Carolina application and treats a cancellation older than 90 days as requiring the examination; G.S. 58-33-32(g) also permits the current-license and NAIC-record alternatives.
Prior License
Previously licensed for the same lines of authority; current home-state license, cancellation within 90 days with good-standing certification, or NAIC database records of good standing establishes the statutory exemption.
Residency
An applicant moving to North Carolina must apply within 90 days after establishing legal residence.

Official no-examination sources

Effective from 2026-09-22.

North Carolina Personal Lines Agent Examination

Provider
Pearson VUE
Format
Four-option multiple-choice; general and state-specific content scored together
Exam questions
80 scored questions; up to 16 additional unscored pretest questions
Time limit
1 hour, 45 minutes
Passing score
Scaled score of 70 on the 0–100 reporting scale
Exam fee
$45.00 per examination attempt
Examination outline
  • I. TERMS AND CONCEPTS .............................................. 11
    • A. Risk
    • B. Hazard
    • C. Peril
    • D. Economic Loss
    • E. Indemnity
    • F. Insurable Interest
    • G. Deductible
    • H. Direct loss vs. Indirect loss (loss of use)
    • I. Named peril vs. Open peril
    • J. Specific vs. blanket coverage
    • K. Property loss valuation
    • K.1. Actual Cash Value
    • K.2. Replacement cost
    • K.3. Functional replacement cost
    • K.4. Salvage value
    • L. Mortgagee/loss payee
    • M. Misrepresentation, breach of warranty, concealment
    • N. Negligence, liability, and supplementary payments
    • O. Bodily injury, property damage, personal injury
    • P. Accident/Occurrence
    • Q. Liability Limits: single and split
    • R. Certificate of Insurance
    • S. Binder
    • T. Endorsement
    • U. Liberalization clause
    • V. Major classes of policy provisions
    • V.1. Declarations
    • V.2. Definitions
    • V.3. Insuring agreements
    • V.4. Exclusions/Waiver
    • V.5. Conditions
    • W. Insurance
    • X. Application
    • Y. Subrogation
    • Z. Adhesion
    • AA. Consent to Rate
  • II. PERSONAL INSURANCE COVERAGES...................... 30
    • A. Standard Fire Policy ............................................... 5
    • A.1. Perils and losses covered and excluded
    • A.2. Inception/expiration
    • A.3. Limitations on amount payable
    • A.3.a. Policy limit
    • A.3.b. Actual Cash Value
    • A.3.c. Cost to repair or replace
    • A.3.d. Pro rata liability
    • A.3.e. Interest of the insured
    • A.4. Insurer’s options in the loss settlement
    • A.5. Concealment, misrepresentations, fraud
    • A.6. Requirements in the event of loss
    • A.7. Appraisal
    • A.8. Subrogation
    • A.9. Suit against the company
    • A.10. Abandonment
    • A.11. Waiver
    • B. Basic (DP-1), Broad (DP-2), and Special (DP-3) dwelling property forms ......................................... 4 (The candidate should be able to compare the major features of these forms.)
    • B.1. General nature and eligibility
    • B.2. Coverage items and other coverages
    • B.3. Property excluded
    • B.4. Perils covered and excluded
    • B.5. Other conditions and provisions (e.g., loss settlement subrogation)
    • B.6. Personal Liability and Theft Coverages
    • C. Homeowner’s policies (including amendatory endorsements) ........................................................ 15 Ref: This section is based on the North Carolina Rate Bureau Forms as adapted from the HO-2011 program of the Insurance Services Offices.
    • C.1. Eligibility and forms available
    • C.2. Definitions
    • C.3. Section I (The candidate should be able to analyze and compare the several Homeowners policies with respect to the following items.)
    • C.3.a. Coverage items and additional coverages
    • C.3.b. Property limited or excluded
    • C.3.c. Perils covered and excluded
    • C.3.d. Relationship among amounts of insurance
    • C.3.e. Loss settlement
    • C.3.f. Other conditions
    • C.4. Section II
    • C.4.a. Liability insuring agreement and exclusions
    • C.4.b. Medical payments insuring agreement and exclusions
    • C.4.c. Additional coverages
    • C.4.d. Section II conditions
    • C.5. Conditions applicable to Sections I and II
    • C.6. Frequently Used Homeowner endorsements
    • C.6.a. Scheduled personal property (personal articles floater) Ref: HO-04-61
    • C.6.b. Personal injury Ref: HO-32-82
    • C.6.c. Personal property replacement cost Ref: HO-04-90
    • C.6.d. Permitted incidental occupancies Ref: HO-04-42
    • C.6.e. Watercraft Ref: HO-24-75
    • C.6.f. Water Back Up and Sump Discharge or Overflow Ref: HO-04-84
    • C.6.g. Refrigerated property coverage Ref: HO-04-98
    • C.7. North Carolina amendatory endorsements (mandatory)
    • C.7.a. Special provisions HO-32-32
    • C.7.b. Home day care business liability exclusions and limited property coverage HO-32-96
    • D. Other personal policies .......................................... 1
    • D.1. Mobile Homeowners Policy
    • E. Flood Insurance ...................................................... 3 (The candidate is not responsible for differences in the Flood Program’s treatment of personal exposures and commercial exposures.)
    • E.1. National Flood Insurance Program
    • E.1.a. Background and purpose
    • E.1.k. Programs
    • E.1.k.4) Emergency
    • E.1.k.5) Regular
    • E.1.k.6) Who needs flood insurance
    • E.1.l. Flood maps and zone determinations
    • E.1.m. Policies available
    • E.1.n. Definitions
    • E.1.o. General rules
    • E.1.p. Rating
    • E.1.q. Claims handling process
    • E.1.r. Write your own company
    • E.3. Excess flood insurance
    • E.4. Private flood insurance
    • F. Watercraft/yacht ...................................................... 1
    • F.1. Hull coverage
    • F.2. Liability (protection and indemnity) coverage
    • G. Personal umbrella liability ..................................... 1
    • G.1. General nature
    • G.2. Underlying coverages
    • G.3. Self-Insured retention
  • III. PERSONAL AUTO POLICY (NORTH CAROLINA RATE BUREAU FORM) ................................................. 15
    • A. General nature and eligibility
    • B. Definitions
    • B.1. Named insured
    • B.2. An insured
    • B.3. Covered automobile
    • B.3.a. Non-owned
    • B.3.b. Temporary substitute
    • C. Standard coverages, parts A through D (The candidate should have knowledge of the insuring agreement, exclusions, and other items of the coverage listed below.)
    • C.1. Liability
    • C.2. Medical payments
    • C.3. Uninsured motorists/underinsured motorists
    • C.4. Damage to your auto (physical damage)
    • C.5. Insured’s duties
    • C.6. General provisions
    • D. Other coverages available
    • D.1. Towing and labor Ref: NC 03 03
    • D.2. Extended transportation expenses Ref: NC 03 02
    • D.3. Extended non-owned coverage Ref: NC 03 06
    • D.4. Coverage for Damage to Your Auto Ref: NC 03 15
  • IV. NORTH CAROLINA STATUTES AND REGULATIONS PERTINENT TO PERSONAL LINES ............................. 24
    • A. Contract of Insurance Ref: Article 1 (G.S. 58-1-10)
    • B. Commissioner of Insurance Ref: Article 2 (G.S. 58-2-5, 40, 50, 60, 65, 69, 70, 75, 155, 160, 161, 162, 163, 180, 185, 195, 200); 11 NCAC, Chapter 19, Section .0103
    • C. General Regulations for Insurance Ref: Article 3 (G.S. 58-3-10, 15, 25, 40, 115, 120, 130, 135, 140, 145)
    • D. Licensing of Agents, Limited Representatives, and Adjusters Ref: Article 33 (G.S. 58-33-1, 5, 10, 17, 20, 26, 31, 32, 40, 46, 50, 56, 60, 66, 70, 75, 76, 80, 82, 83, 85, 95, 100, 105, 110, 115, 120, 125, 130, 132, 135); 11 NCAC, Chapter 4, Section .0423
    • E. Insurance Information & Privacy Protection Act Ref: Article 39 (G.S. 58-39-5 through 58-39-120)
    • F. Regulation of Credit Insurance Ref: Article 57 (G.S. 58-57-65)
    • G. Unfair Trade Practices Ref: Article 63 (G.S. 58-63-15, 20, 50)
    • H. False Pretenses and Cheats Ref: Article 19 (G.S. 14-100)
    • I. Continuing Education Ref: 11NCAC, Chapter 6A, Section .0800; 11 NCAC, Chapter 4, Section .0423
    • J. North Carolina Rate Bureau Ref: Article 36 (G.S. 58-36-1, 15, 20, 25, 30, 45, 55, 65, 75, 80)
    • K. North Carolina Motor Vehicle Reinsurance Facility Ref: Article 37 (G.S. 58-37-1,5, 25, 30, 35, 50, 55, 60)
    • L. General Regulations of Business Ref: Article 43 (G.S. 58-43-5, 10)
    • M. Fire Insurance Policies Ref: Article 44 (G.S. 58-44-1, 5, 30)
    • N. Essential Property Insurance for Beach Area Property Ref: Article 45 (G.S. 58-45-1, 5, 10, 15, 35)
    • O. Fair Access to Insurance Requirements Ref: Article 46 (G.S. 58-46-1, 5, 10, 15)
    • P. Post Assessment Insurance Guaranty Association Ref: Article 48 (G.S. 58-48-5, 10, 25, 35)
    • Q. Motor Vehicle Liability Policy Defined Ref: (G.S. 20-279.21); 11 NCAC, Chap. 4, Section .0415
    • R. Cancellation or Nonrenewal of Motor Vehicle Policy Ref: (G.S. 20-310)
    • S. Consumer Division Ref: II NCAC, Chapter 4, Subsections .0120, .0121, .0122, .0415, .0423, .0429
Examination sources