1.2 North Carolina Producer Licensing Requirements
Key Takeaways
As of October 1, 2025 (HB 737 / SL 2025-45), North Carolina no longer mandates a minimum number of pre-licensing education hours and eliminated the proctored course-completion certificate exam
The state licensing exam is administered by Pearson VUE (not PSI), with a passing scaled score of 70 and a 1 hour 15 minute time limit per major line
Life and Accident & Health are separate exams; each runs about 60 questions and the exam fee is roughly $45 per attempt paid to Pearson VUE
Applicants apply through NIPR (about $82 base, which includes a $38 fingerprint fee, plus $50 per line of authority and a small NIPR processing fee)
Applicants must be at least 18, apply and pay through NIPR before scheduling, pass the exam within the six-month application window, and complete a fingerprint-based criminal background check
A Major 2025 Change: Pre-Licensing Education
For years North Carolina required 20 hours of pre-licensing education for Life and another 20 for Accident & Health (40 hours combined), capped by a proctored certificate exam. That changed on October 1, 2025. Under House Bill 737 (Session Law 2025-45), North Carolina no longer mandates a minimum number of pre-licensing course hours and removed the proctored end-of-course certificate exam. Education is now optional preparation, not a legal prerequisite.
| Item | Before Oct 1, 2025 | On/After Oct 1, 2025 |
|---|---|---|
| Minimum course hours | 20 Life + 20 A&H | None required |
| Course certificate exam | Required, proctored | Eliminated |
| Certificate at test center | Required | Not required for new applicants |
| State exam | Required | Still required |
Exam trap: Older study materials still say "20 hours of pre-licensing is mandatory." That is now outdated. The state licensing exam itself was not changed — only the course mandate was dropped.
Basic Eligibility
To be licensed as a resident producer you must:
- Be at least 18 years old
- Be a North Carolina resident (for a resident license)
- Pass the relevant Pearson VUE state exam(s)
- Complete a fingerprint-based criminal background check
- Apply through NIPR and pay the required fees
The Licensing Examination (Pearson VUE)
North Carolina's licensing exam is delivered by Pearson VUE on behalf of NCDOI — not PSI, a common mistake in older guides.
| Exam Detail | Requirement |
|---|---|
| Vendor | Pearson VUE (test centers) |
| Passing score | Scaled score of 70 |
| Time limit | 1 hour 15 minutes per major-line exam |
| Questions | 55 scored (plus 5 unscored pretest = 60 total), multiple-choice, per line |
| Exam fee | ~$45 per attempt, paid to Pearson VUE |
| Results | Pass/fail on screen immediately after submission |
| Retakes | Allowed; reschedule and pay a new fee |
Life and Accident & Health (or Sickness) are separate exams. To sell both lines, you take and pass both, paying the exam fee each time.
What the Exam Covers
| Content Area | Notes |
|---|---|
| General insurance concepts | Risk, contract law, policy provisions |
| Life insurance | Types, riders, settlement options |
| Annuities | Fixed, variable, indexed |
| Health insurance | Major medical, disability, LTC, Medicare supplement |
| North Carolina statutes & rules | Chapter 58 / 11 NCAC — heavily weighted |
Steps to Sit the Exam
- Apply through NIPR first — you cannot schedule until Pearson VUE emails an eligibility/authorization notice.
- Schedule at a Pearson VUE test center.
- Bring valid government photo ID (the first and last name must match the registration).
- Take the exam; receive immediate results.
Background Check and Suitability
North Carolina requires a fingerprint-based criminal history check (the $38 fingerprint fee is bundled into the NIPR application). Applicants must disclose all criminal history.
- Felonies and crimes involving fraud, dishonesty, or breach of trust are the most serious red flags.
- Under federal 18 U.S.C. 1033/1034, anyone convicted of a felony involving dishonesty or breach of trust is barred from the insurance business without written consent (a 1033 waiver) from the Commissioner.
- A record does not automatically disqualify — NCDOI weighs the offense, time elapsed, and rehabilitation.
Fees and Lines of Authority
Applications go through the National Insurance Producer Registry (NIPR):
| Fee | Amount |
|---|---|
| NIPR base application | ~$82 (includes the $38 fingerprint fee for first-timers) |
| Per line of authority | $50 each |
| NIPR transaction fee | $5 per application |
| Pearson VUE exam | ~$45 per attempt |
Lines of Authority
| Line | What You May Sell |
|---|---|
| Life | Life insurance and annuities |
| Accident & Health or Sickness | Health, disability income, and long-term-care insurance |
| Life + A&H | All life and health products (two lines, two exams, two $50 fees) |
Resident vs. Non-Resident
- A resident license is for producers domiciled in North Carolina.
- A non-resident license is for producers already licensed in good standing in their home state; under NAIC reciprocity, they apply through NIPR without retaking the NC exam.
- If a resident producer moves out of state, they must notify NCDOI and typically convert to a non-resident license.
Worked example: Maria wants to sell both life policies and disability income coverage. She must pass two Pearson VUE exams (Life and Accident & Health), pay two $50 line fees plus the NIPR base, and clear one fingerprint background check. Total exam attempts: at least two, at ~$45 each.
Appointments: License vs. Authority to Represent an Insurer
A license lets you sell a line; an appointment authorizes you to represent a specific insurer. After hiring a producer, the insurer files an appointment with NCDOI (a per-appointment fee applies). A producer may hold appointments with many carriers at once, and an insurer that terminates a producer must report the termination — including the reason, if for cause — to NCDOI. Selling a carrier's product without an active appointment is a Chapter 58 violation, so candidates should keep the license-then-appointment sequence straight on the exam.
As of October 1, 2025, what is true about North Carolina pre-licensing education for insurance producers?
It increased to 40 hours for every line
It is required only for non-resident applicants
It now must be completed in a classroom only
A minimum number of course hours is no longer required
Who administers North Carolina's insurance licensing examinations?
Prometric
PSI Services LLC
NCDOI proctors the exam in person at its Raleigh office
Pearson VUE
What is the passing score and time limit for a North Carolina major-line licensing exam?
65% in 2 hours
80% in 1 hour
75% in 90 minutes
A scaled score of 70 in 1 hour 15 minutes
A producer is convicted of a felony involving breach of trust. Under federal law applied in North Carolina, the producer:
Is barred from the insurance business absent a written 1033 consent waiver from the Commissioner
Is permanently barred with no possible exception
May continue working with no restriction
Only loses the right to sell annuities
Sections you finish are checked off in the contents.