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100+ Free North Carolina Surplus Lines Practice Questions

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65-75% Pass Rate
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2026 Statistics

Key Facts: North Carolina Surplus Lines Exam

65-75%

First-Time Pass Rate

Industry Data

70 (scaled)

Passing Score

Pearson VUE

~50

Exam Questions

Pearson VUE

1 hour

Exam Duration

Pearson VUE

$64

Exam Fee

Pearson VUE

Property Required

Prerequisite

NCDOI

North Carolina requires surplus lines brokers to pass a Pearson VUE exam and join the NC Surplus Lines Association. Candidates must hold an active Property license and demonstrate knowledge of E&S markets, diligent search, the 5% premium tax, and NC coastal property surplus lines practices.

About the North Carolina Surplus Lines Exam

The North Carolina surplus lines broker exam covers E&S markets, NCDOI regulations, diligent search requirements, non-admitted insurer eligibility, surplus lines taxation, NRRA provisions, and NC-specific requirements including mandatory membership in the NC Surplus Lines Association.

Questions

50 scored questions

Time Limit

1 hour

Passing Score

70 (scaled)

Exam Fee

$64 (Pearson VUE)

North Carolina Surplus Lines Exam Content Outline

30%

Surplus Lines Markets

Lloyd's of London, London market, alien insurers, wholesale brokers, MGAs, market cycles, and E&S industry structure

25%

North Carolina Surplus Lines Law

NCDOI regulations, Property license prerequisite, mandatory NC Surplus Lines Association membership, disclosure obligations, and penalties

20%

Diligent Search & Eligibility

Diligent search process, declination documentation, eligible insurer financial requirements, export lists, NC Beach Plan interaction

25%

Taxation & Compliance

NC 5% premium tax, Association tax processing, NRRA home-state taxation, recordkeeping, and filing obligations

How to Pass the North Carolina Surplus Lines Exam

What You Need to Know

  • Passing score: 70 (scaled)
  • Exam length: 50 questions
  • Time limit: 1 hour
  • Exam fee: $64

Keys to Passing

  • Complete 500+ practice questions
  • Score 80%+ consistently before scheduling
  • Focus on highest-weighted sections
  • Use our AI tutor for tough concepts

North Carolina Surplus Lines Study Tips from Top Performers

1Understand the mandatory NC Surplus Lines Association membership requirement — this is unique to NC
2Know NC's 5% surplus lines premium tax and Association filing procedures
3Study the NC Property license prerequisite and how it differs from other states requiring P&C
4Master the diligent search process and understand the NC Beach Plan as an alternative for coastal risks
5Learn the NRRA home-state taxation provisions and how they affect multi-state NC placements
6Review the financial requirements for non-admitted insurers to be eligible in North Carolina

Frequently Asked Questions

What does the North Carolina surplus lines broker exam cover?

The exam covers surplus lines markets, NCDOI regulations, diligent search, non-admitted insurer eligibility, the 5% premium tax, NRRA provisions, and NC-specific requirements including mandatory NC Surplus Lines Association membership.

What license do I need before taking the NC surplus lines exam?

You must hold an active North Carolina Property insurance license. Note that NC specifically requires the Property license, not just a general P&C license.

Do I have to join the NC Surplus Lines Association?

Yes. North Carolina uniquely requires all licensed surplus lines brokers to join the NC Surplus Lines Association after obtaining their license. This is mandatory, not optional.

What is the passing score for the NC surplus lines exam?

You need a scaled score of 70 or higher to pass the Pearson VUE exam. The scaled scoring adjusts for variations in exam difficulty across test forms.

What is the surplus lines premium tax rate in North Carolina?

North Carolina imposes a 5% premium tax on surplus lines transactions. The broker collects this and remits it through the NC Surplus Lines Association.

How long do I have to complete the NC surplus lines exam?

You have approximately 1 hour to complete the exam, which includes approximately 50 scored questions plus pretest questions that do not count toward your score.