North Dakota Life & Health Insurance License Exam Overview
The North Dakota Life & Health Insurance License Exam is administered by PSI on behalf of the North Dakota Insurance Department (NDID). North Dakota offers unique opportunities for insurance professionals, with a growing energy sector, thriving agricultural communities, and underserved rural markets that need knowledgeable insurance agents.
With no pre-licensing education requirement, North Dakota provides one of the most accessible paths to becoming a licensed insurance professional. The state's low population density means less competition and more opportunity to build lasting client relationships.
Exam Format at a Glance
| Component | Details |
|---|---|
| Total Questions | 110 scored questions (Life & Annuity or Accident & Health) |
| Time Limit | 150 minutes (2.5 hours) |
| Passing Score | 70% (77 correct answers) |
| Testing Vendor | PSI |
| Exam Fee | $64 per exam |
| Pre-licensing Education | Not required |
| Exam Format | Computer-based, multiple-choice |
Note: As of March 2022, North Dakota transitioned to a one-part exam format (previously two parts). The exam covers both Product knowledge and Laws in a single sitting.
Why Get Licensed in North Dakota?
- Energy sector boom — Oil and gas workers in the Bakken region need comprehensive insurance coverage
- No pre-licensing requirement — Start preparing immediately without completing education courses first
- Agricultural economy — Farm families and agribusinesses require specialized insurance products
- Low competition — Many rural communities are underserved by insurance professionals
- Growing cities — Fargo, Bismarck, and Grand Forks are experiencing population growth
- Reciprocity agreements — ND license can help you obtain licenses in other states
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Ready to begin studying? Our comprehensive, completely free North Dakota Life & Health exam prep covers everything you need to pass.
Key Topics Covered on the Exam
1. Life Insurance Fundamentals (30-35%)
Types of Life Insurance:
- Term Life Insurance (level, decreasing, renewable, convertible)
- Whole Life Insurance (ordinary, limited pay, single premium)
- Universal Life Insurance (flexible premiums, adjustable death benefit)
- Variable Life Insurance (securities-based, requires additional licensing)
- Group Life Insurance
North Dakota Policy Provisions:
| Provision | North Dakota Standard |
|---|---|
| Grace Period | 31 days |
| Incontestability Period | 2 years |
| Suicide Clause | 2 years |
| Free Look Period | 20 days |
| Misstatement of Age | Adjusted benefits |
| Reinstatement | 3 years |
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 Dakota Health Programs:
- Healthcare.gov — North Dakota uses the federal marketplace for ACA plans
- North Dakota Medicaid — State Medicaid program for eligible residents
- Healthy Steps (CHIP) — Children's Health Insurance Program for children in families up to 170% of federal poverty level
- Medicare Supplement Insurance — Standardized Medigap plans
Disability and Long-Term Care:
- Short-term disability insurance
- Long-term disability insurance
- Long-term care insurance requirements
- Partnership programs
3. Annuities (15-20%)
- Fixed annuities (traditional, indexed)
- Variable annuities (requires securities license)
- Immediate vs. deferred annuities
- Accumulation and annuitization phases
- Surrender charges and free withdrawal provisions
- North Dakota annuity suitability requirements
4. North Dakota Insurance Regulations (15-20%)
Governing Law: North Dakota Century Code Title 26.1 governs all insurance activities in the state. Key chapters include:
- Chapter 26.1-01: Insurance Commissioner
- Chapter 26.1-02: General Provisions
- Chapter 26.1-04: Prohibited Practices in Insurance Business
- Chapter 26.1-26: Insurance Producers
Key Regulatory Topics:
- Unfair trade practices and unfair claims practices
- Replacement regulations
- Advertising guidelines
- Privacy requirements
- Anti-discrimination rules
- Fiduciary responsibilities
Licensing Requirements:
| Requirement | Details |
|---|---|
| Pre-licensing Education | Not required |
| Background Check | Fingerprint-based (through PSI or SLED) |
| Fingerprinting Fee | $29 to PSI + $40 to ND Attorney General |
| License Application Fee | $100 (initial application) |
| Application Method | NIPR electronic submission |
5. Ethics and Producer Responsibilities (10-15%)
- Fiduciary duty to clients
- Needs analysis and suitability determinations
- Disclosure requirements
- Premium handling and trust accounts
- Reporting misconduct
- Client confidentiality
🎯 Free Practice Questions Available
Test your knowledge with hundreds of free practice questions designed specifically for the North Dakota Life & Health exam.
Study Timeline for Success
| Week | Focus Area | Hours |
|---|---|---|
| Week 1 | Life insurance products and provisions | 10-12 |
| Week 2 | Health insurance products and ACA | 10-12 |
| Week 3 | Annuities and retirement products | 8-10 |
| Week 4 | North Dakota regulations and ethics | 8-10 |
| Week 5 | Practice exams and review | 10-15 |
Total recommended study time: 50-60 hours
Since North Dakota does not require pre-licensing education, you can jump directly into self-study. However, Kaplan, ExamFX, and other providers offer optional prep courses that many candidates find helpful.
North Dakota-Specific Exam Tips
1. Know North Dakota Century Code Title 26.1
The exam heavily tests North Dakota-specific regulations:
- Chapter 26.1-04 — Prohibited practices in insurance business
- Chapter 26.1-26 — Insurance producer licensing requirements
- Chapter 26.1-39 — Property and casualty provisions (for combo licenses)
2. Master These North Dakota Numbers
| Topic | Number to Remember |
|---|---|
| Grace period (life) | 31 days |
| Free look period | 20 days |
| Incontestability | 2 years |
| Suicide clause | 2 years |
| CE requirement | 24 hours/2 years (3 hours ethics) |
| Passing score | 70% |
| Exam time limit | 150 minutes |
3. Understand North Dakota Health Programs
Know the differences between:
- Healthcare.gov — Federal marketplace for individual/family ACA plans
- North Dakota Medicaid — For low-income residents
- Healthy Steps — CHIP program for children up to 170% FPL
- How these programs coordinate with private insurance
Testing Locations in North Dakota
PSI offers multiple testing options:
In-Person Testing Centers:
- Bismarck — PSI (120 N 3rd St, Suite 75)
- Bismarck — North Dakota Safety Council
- Minot — Minot State University
- Grand Forks — University of North Dakota
- Fargo — Fargo Training and Testing Center (4575 23rd Ave S, Suite 110)
Online Proctored Exams: You can also take the exam from home via PSI's online proctored testing system. Requirements include a webcam, microphone, and stable internet connection.
Common Mistakes to Avoid
- Underestimating the exam difficulty — Even without pre-licensing requirements, the exam is comprehensive
- Skipping health insurance — It carries equal weight to life insurance
- Ignoring state-specific regulations — Title 26.1 questions are heavily tested
- Not timing practice exams — 150 minutes goes faster than you think
- Cramming — Spread your study over 4-5 weeks for better retention
- Forgetting annuity suitability — North Dakota follows NAIC model regulations
After Passing Your Exam
- Complete fingerprinting — Available at PSI test centers or through LiveScan ($29 to PSI + $40 to ND Attorney General)
- Submit license application — Through NIPR (National Insurance Producer Registry)
- Pay application fee — $100 for initial resident producer license
- Receive your license — Typically processed within 2-4 weeks
- Affiliate with an insurer — Contract with insurance companies to start selling
- Begin selling — Your license is valid for 2 years
Continuing Education Requirements
To maintain your North Dakota insurance license:
| Requirement | Details |
|---|---|
| CE Hours | 24 hours every 2 years |
| Ethics Requirement | 3 of 24 hours must be in ethics |
| Carryover Allowed | Up to 12 hours (ethics cannot carry over) |
| Carryover Window | Only courses within 365 days of expiration |
| Reporting | Providers submit electronically to NDID |
Important: CE credits must be submitted electronically by the course provider. The North Dakota Insurance Department cannot accept credits submitted directly by producers.
2026 North Dakota Updates
For 2026, be aware of:
- Current exam vendor is PSI (changed from Prometric in 2022)
- One-part exam format (previously two parts)
- Updated continuing education tracking through NIPR
- Federal marketplace enrollment periods for Healthcare.gov
- New telehealth coverage requirements
Start Your North Dakota Insurance Career Today
North Dakota offers a streamlined path to insurance licensing with no pre-licensing education requirements. With proper preparation, you can pass the exam on your first attempt and begin serving the insurance needs of North Dakota residents.
Our free study materials include:
- ✅ Complete topic coverage
- ✅ Practice questions with explanations
- ✅ North Dakota-specific regulations
- ✅ Study guides and summaries
- ✅ AI-powered study assistance
Don't pay for expensive prep courses when everything you need is available FREE.