North Dakota Property & Casualty Insurance License Exam Overview
The North Dakota Property & Casualty Insurance License Exam is administered by PSI on behalf of the North Dakota Insurance Department. North Dakota's agricultural economy, harsh winters, and severe weather exposure create unique insurance challenges that require specialized P&C knowledge.
Passing this exam qualifies you to sell property insurance, auto insurance, liability coverage, and related products throughout North Dakota—a state with over 770,000 residents where agriculture, energy production, and extreme weather conditions drive substantial P&C insurance needs.
Exam Format at a Glance
| Component | Details |
|---|---|
| Total Questions | 100 multiple-choice |
| Scored Questions | 100 |
| Time Limit | 2 hours |
| Passing Score | 75% (75 correct answers) |
| Testing Vendor | PSI |
| Exam Fee | $128 |
| Pre-licensing Education | Not required (recommended) |
Why Get P&C Licensed in North Dakota?
- Strong agricultural market — Farm and ranch insurance expertise valued
- Energy sector growth — Oil and gas industry creates commercial opportunities
- Low competition — Fewer agents per capita than most states
- Affordable entry — Only 20 hours pre-licensing required
- Weather expertise — Severe weather knowledge highly valued
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Key Topics Covered on the Exam
1. Property Insurance (30%)
Homeowners Insurance:
- HO-2, HO-3, HO-4, HO-5, HO-6, HO-8 policy forms
- Coverage A (Dwelling), B (Other Structures), C (Personal Property)
- Coverage D (Loss of Use), E (Personal Liability)
- Dwelling fire policies
North Dakota-Specific Property Topics:
- North Dakota FAIR Plan (residual market)
- Severe winter weather coverage (snow load, ice dams, frozen pipes)
- Hail and tornado coverage (significant ND exposure)
- Flood insurance considerations (Red River Valley)
- Farm and ranch property insurance
Commercial Property:
- Building and personal property coverage forms
- Business income coverage
- Equipment breakdown
- Inland marine coverage
2. Liability Insurance (30%)
Personal Liability:
- Homeowners liability (Coverage E)
- Personal umbrella policies
- Medical payments coverage
Commercial Liability:
- Commercial General Liability (CGL)
- Products and completed operations
- Professional liability (E&O)
- Workers' compensation requirements
North Dakota Workers' Compensation:
- Exclusive state fund (Workforce Safety & Insurance)
- Mandatory coverage for most employers
- No private carrier options
- Self-insurance limited to qualified employers
3. Auto Insurance (25%)
North Dakota Auto Insurance Requirements:
| Coverage | Minimum Limit |
|---|---|
| Bodily Injury (per person) | $25,000 |
| Bodily Injury (per accident) | $50,000 |
| Property Damage | $25,000 |
Additional Auto Topics:
- Personal Auto Policy (PAP) coverage parts
- North Dakota financial responsibility law
- Uninsured motorist coverage (required in ND)
- Underinsured motorist coverage
- SR-22 requirements
- Commercial auto insurance
- No-fault provisions
4. North Dakota Insurance Code and Regulations (10%)
Title 26.1 Key Provisions:
- Producer licensing requirements
- Unfair trade practices
- Unfair claims settlement practices
- Policy cancellation and nonrenewal rules
- Advertising guidelines
Licensing Requirements:
- Pre-licensing education: 20 hours (lower than most states)
- Continuing education: 24 hours every 2 years
- Ethics requirement: 3 hours included in CE
- Background check required
5. Ethics and Professional Conduct (5%)
- Fiduciary duties to insureds
- Premium handling requirements
- Claims reporting obligations
- Privacy and confidentiality
Study Timeline for Success
| Week | Focus Area | Hours |
|---|---|---|
| Week 1 | Property insurance fundamentals | 10-12 |
| Week 2 | Liability insurance | 10-12 |
| Week 3 | Auto insurance and ND requirements | 10-12 |
| Week 4 | North Dakota regulations (Title 26.1) | 8-10 |
| Week 4-5 | 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 Dakota P&C exam.
North Dakota-Specific Exam Tips
1. Know North Dakota Auto Minimums
North Dakota requires 25/50/25 liability coverage:
- $25,000 per person bodily injury
- $50,000 per accident bodily injury
- $25,000 property damage
2. Master Severe Weather Coverage
North Dakota's extreme weather is critical:
- Hail damage — Major property claim type
- Tornado coverage — Significant exposure across the state
- Winter weather — Snow load, ice dams, frozen pipes
- Wind damage — Common claim in rural areas
3. Understand Agricultural Coverage
North Dakota's agricultural economy requires specialized knowledge:
- Farm and ranch policies — Combined property and liability
- Crop insurance — Federal programs and private options
- Livestock coverage — Mortality and theft protection
- Equipment coverage — Farm machinery and implements
4. Key Numbers to Remember
| Topic | North Dakota Requirement |
|---|---|
| Auto minimums | 25/50/25 |
| WC coverage | Exclusive state fund |
| Pre-licensing | 20 hours |
| CE requirement | 24 hours/2 years |
| Passing score | 70% |
Common Mistakes to Avoid
- Ignoring severe weather coverage — Critical in North Dakota
- Not knowing auto minimums — North Dakota is 25/50/25
- Skipping agricultural topics — Major market segment in ND
- Forgetting state fund WC — ND has exclusive state fund
- Not practicing timed exams — 2 hours for 100 questions
- Cramming last minute — Spread study over 4-5 weeks
After Passing Your Exam
- Apply for license through North Dakota Insurance Department
- Complete background check — Required for all applicants
- Pay license fee — Resident license fee applies
- 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 Dakota Updates
For 2026, be aware of:
- Severe weather coverage rate changes
- Agricultural insurance modifications
- Energy sector coverage updates
- Enhanced consumer protection regulations
Start Your North Dakota P&C Insurance Career Today
The North Dakota P&C license opens doors to a unique market where agricultural expertise and severe weather knowledge are highly valued. With proper preparation, you can pass the exam on your first attempt.
Our free study materials include:
- Complete topic coverage
- Practice questions with explanations
- North Dakota-specific regulations (Title 26.1)
- Study guides and summaries
- AI-powered study assistance
Don't pay for expensive prep courses when everything you need is available FREE.