North Carolina Life & Health Insurance License Exam Overview
The North Carolina Life & Health Insurance License Exam is administered by Prometric on behalf of the North Carolina Department of Insurance (NCDOI). North Carolina is the ninth-largest state by population, with Charlotte, Raleigh-Durham, and the Research Triangle serving as major economic centers.
Passing this exam qualifies you to sell life insurance, health insurance, annuities, and related products throughout North Carolina—a state with over 10 million residents, a thriving banking sector, and strong demand for insurance products.
Exam Format at a Glance
| Component | Details |
|---|---|
| Total Questions | 150 multiple-choice |
| Scored Questions | 150 |
| Time Limit | 2.5 hours |
| Passing Score | 70% (105 correct answers) |
| Testing Vendor | Prometric |
| Exam Fee | $45 |
| Pre-licensing Education | 20 hours required |
Why Get Licensed in North Carolina?
- Growing population — Over 10 million residents and expanding
- Charlotte banking hub — Major financial services center
- Research Triangle — High-tech, high-income professionals
- Low pre-licensing — Only 20 hours required
- Competitive compensation — Average agent salary over $63,000
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Key Topics Covered on the Exam
1. Life Insurance Fundamentals (30-35%)
Types of Life Insurance:
- Term Life (level, decreasing, renewable, convertible)
- Whole Life (ordinary, limited pay, single premium)
- Universal Life (flexible premiums, adjustable death benefit)
- Variable Life (securities-based, separate account)
Policy Provisions Under North Carolina Law:
| Provision | North Carolina Requirement |
|---|---|
| Grace Period | 30 days minimum |
| Incontestability | 2 years |
| Suicide Clause | 2 years |
| Free Look Period | 10 days (30 days for seniors) |
| Reinstatement | 3 years |
| Misstatement of Age | Adjustment of benefits |
Beneficiary Designations:
- Primary and contingent beneficiaries
- Revocable vs. irrevocable designations
- Per stirpes vs. per capita distribution
- North Carolina estate considerations
2. Health Insurance Fundamentals (30-35%)
Major Medical Coverage:
- Deductibles, copays, coinsurance
- Out-of-pocket maximums
- Network types (HMO, PPO, EPO, POS)
- Essential health benefits under ACA
North Carolina-Specific Health Topics:
- Healthcare.gov marketplace (NC uses federal exchange)
- NC Health Choice for Children (CHIP)
- Medicaid expansion considerations
- Mental health parity requirements
Disability Income Insurance:
- Short-term vs. long-term disability
- Own occupation vs. any occupation definitions
- Elimination periods and benefit periods
- Social Security integration
Long-Term Care Insurance:
- Benefit triggers (ADLs, cognitive impairment)
- North Carolina Long-Term Care Partnership
- Tax-qualified policies
- Inflation protection options
3. Annuities (15-20%)
- Fixed vs. variable annuities
- Immediate vs. deferred annuities
- Accumulation and annuitization phases
- North Carolina annuity suitability requirements
- Surrender charges and free withdrawal provisions
- 1035 exchanges and tax implications
4. North Carolina Insurance Code and Regulations (15-20%)
NC General Statutes Chapter 58 Key Provisions:
- Producer licensing requirements
- Unfair trade practices
- Unfair claims settlement practices
- Replacement regulations
- Advertising guidelines
Licensing Requirements:
- Pre-licensing education: 20 hours
- Continuing education: 24 hours every 2 years
- Ethics requirement: 3 hours included in CE
- Background check required
Producer Responsibilities:
- Fiduciary duties to clients
- Premium handling requirements
- Record retention (5 years)
- Reporting changes within 30 days
5. Ethics and Professional Conduct (10-15%)
- Suitability and needs analysis
- Disclosure requirements
- Privacy and confidentiality (HIPAA compliance)
- Anti-rebating and anti-twisting rules
- Handling complaints and grievances
Study Timeline for Success
| Week | Focus Area | Hours |
|---|---|---|
| Week 1-2 | Life insurance products and provisions | 10-12 |
| Week 2-3 | Health insurance and ACA | 10-12 |
| Week 3-4 | Annuities and specialty products | 6-8 |
| Week 4-5 | NC regulations (Chapter 58) | 6-8 |
| Week 5 | Practice exams and review | 10-12 |
Total recommended study time: 45-55 hours
🎯 Free Practice Questions Available
Test your knowledge with hundreds of free practice questions designed specifically for the North Carolina Life & Health exam.
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North Carolina-Specific Exam Tips
1. Know Your North Carolina Laws
The exam tests North Carolina-specific regulations:
- Chapter 58 — NC General Statutes (Insurance)
- Healthcare.gov — Federal marketplace for NC
- Commissioner powers — Enforcement authority
- NC Health Choice — Children's health coverage
2. Master the Numbers
| Topic | North Carolina Requirement |
|---|---|
| Grace period | 30 days |
| Free look period | 10 days (30 for seniors) |
| Incontestability | 2 years |
| CE requirement | 24 hours/2 years |
| Pre-licensing | 20 hours |
| Passing score | 70% |
| Record retention | 5 years |
3. Understand Federal Marketplace
North Carolina uses Healthcare.gov for health insurance:
- Open enrollment periods (November-January)
- Special enrollment qualifications
- Subsidy and tax credit eligibility
- Plan tier options (Bronze through Platinum)
4. Focus on Senior Protections
North Carolina has enhanced rules for seniors:
- Extended free look period (30 days for seniors)
- Annuity suitability requirements
- Medicare supplement regulations
- Long-term care disclosure requirements
Common Mistakes to Avoid
- Underestimating with low pre-licensing — 20 hours isn't enough alone
- Confusing marketplace — NC uses federal exchange, not state-based
- Skipping health insurance — It's equal weight to life insurance
- Ignoring senior protections — NC has enhanced rules for older consumers
- Not practicing timed exams — 2.5 hours for 150 questions requires pacing
- Cramming last minute — Spread study over 4-5 weeks
After Passing Your Exam
- Apply for license through NC Department of Insurance
- Complete background check — Required for all applicants
- Pay license fee — $50 for resident license
- Affiliate with insurer — Get appointed by carrier
- Maintain CE compliance — 24 hours every 2 years
- Begin selling — Your license is valid for 2 years
2026 North Carolina Updates
For 2026, be aware of:
- Healthcare.gov marketplace updates
- Enhanced telehealth coverage requirements
- Updated producer appointment rules
- Medicaid expansion considerations
Start Your North Carolina Insurance Career Today
The North Carolina Life & Health license opens doors to one of the Southeast's largest and fastest-growing insurance markets. With proper preparation, you can pass the exam on your first attempt.
→ Begin FREE North Carolina Life & Health Exam Prep Now
Our free study materials include:
- ✅ Complete topic coverage
- ✅ Practice questions with explanations
- ✅ North Carolina-specific regulations (Chapter 58)
- ✅ Study guides and summaries
- ✅ AI-powered study assistance
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