North Carolina Property & Casualty Exam Overview
Key Takeaways
House Bill 737 eliminated mandatory pre-licensing education for NC Property, Casualty, Personal Lines, and Life/A&H licenses effective October 1, 2025; applicants must still pass the state exam.
Pearson VUE delivers 55 Property + 55 Casualty scored questions (110 combined), 75 minutes each (150 minutes combined), and you need a scaled score of 70 on each exam; the fee is $45 per part ($90 combined).
North Carolina auto liability minimums are 50/100/50 ($50,000 per person, $100,000 per accident bodily injury, $50,000 property damage) for policies issued or renewed on or after July 1, 2025 under Session Law 2023-133 (SB 452); the old floor was 30/60/25.
North Carolina is a pure contributory negligence state — any plaintiff fault, even 1%, bars all recovery — joining only Alabama, Maryland, Virginia, and DC.
Resident renewal requires 24 hours of continuing education (including 3 ethics hours) every 2 years, plus 3 flood-insurance hours for property licensees in the first period and every 4 years thereafter.
The NC Beach Plan (NCIUA) is the wind/hail insurer of last resort for the 18 coastal counties; the NC Reinsurance Facility is the residual market for auto.
Welcome to OpenExamPrep's FREE North Carolina Property & Casualty (P&C) exam prep guide. This chapter orients you to the exam logistics, the licensing path, and the handful of North Carolina rules that show up on nearly every form of the test.
What the Exam Tests and How It Is Scored
The North Carolina Property & Casualty examination is delivered by Pearson VUE under contract with the North Carolina Department of Insurance (NCDOI). North Carolina splits P&C into two separate exams:
| Component | Scored Questions | Time | Fee | Pass |
|---|---|---|---|---|
| Property | 55 | 75 min | $45 | Scaled 70 |
| Casualty | 55 | 75 min | $45 | Scaled 70 |
| Both exams | 110 | 150 min | $90 | Scaled 70 on each exam |
A critical trap: because Property and Casualty are scored independently, you must reach a scaled score of 70 on each exam separately — a strong Property score will not rescue a failing Casualty score. A scaled score is neither the number nor the percentage of questions answered correctly. The test is multiple choice, computer-based, and you receive an immediate pass/fail result.
Content Blueprint
About 80–90% of items cover national insurance principles; the remainder is North Carolina law. Expect:
- General insurance: insurable interest, indemnity, utmost good faith, the four parts of an insurance contract
- Property: HO forms, dwelling (DP) policies, fire, commercial property, coinsurance, replacement cost vs. actual cash value
- Casualty: personal and commercial auto, general liability, workers' compensation, umbrella
- NC statute and rule: 50/100/50 auto minimums (effective July 1, 2025), contributory negligence, NCIUA Beach Plan, the Reinsurance Facility, unfair trade practices, and the Guaranty Association
Major 2025 Change: Pre-Licensing Eliminated (HB 737)
Effective October 1, 2025, House Bill 737 removed the state-mandated pre-licensing education (PE) requirement for Property, Casualty, Personal Lines, and Life/Accident & Health licenses. NCDOI no longer requires a minimum course-hour count and the previously mandatory proctored Certificate Exam at the end of a PE course is gone.
| Item | Before 10/1/2025 | On or After 10/1/2025 |
|---|---|---|
| PE hours (P&C) | 20 hours per line | 0 hours — none required |
| Course Certificate at test center | Required | Not required |
| State licensing exam | Required | Still required |
A frequently tested nuance: a candidate who applied through NIPR before October 1, 2025 must still present a course certificate at the Pearson VUE center, while anyone applying on or after that date does not. PE courses remain recommended as exam prep — they are simply no longer mandatory.
The Licensing Path Step by Step
With PE gone, the workflow is: study, apply through NIPR, schedule, pass, fingerprint, and receive your license.
- Study & prepare — master national P&C plus this NC guide.
- Apply through NIPR first — complete the resident application and pay all fees (including the $38 fingerprint fee) before you can book an exam.
- Schedule with Pearson VUE — after the authorization email arrives, pay $45 per exam and book an NC Pearson VUE test center.
- Pass — a scaled score of 70 on each exam; you leave with your score report, and Pearson VUE sends the result to NIPR.
- Fingerprint background check — Live Scan prints at a local law enforcement office, with the signed SBI forms uploaded to NIPR, for the state and FBI criminal history check.
- Licensing review — the license is issued once the exam result, fingerprints and criminal history are all received and approved.
Retake Policy
| Situation | Rule |
|---|---|
| Failed a part | Wait before re-scheduling; pay the $45 part fee again |
| Attempts | No statutory cap on attempts |
| Strategy | You only re-sit the part you failed, not both |
North Carolina-Specific Rules You Must Know Cold
These state rules are the highest-yield exam items because they differ sharply from the national defaults you learned first.
Pure Contributory Negligence
North Carolina follows pure contributory negligence, one of only four states plus the District of Columbia to do so. If the plaintiff is found even 1% at fault, they recover nothing.
| Aspect | Detail |
|---|---|
| Bar to recovery | Any plaintiff fault = $0 recovery |
| Other jurisdictions | Alabama, Maryland, Virginia, Washington DC |
| Contrast | Most states use comparative negligence (recovery reduced by fault %) |
| Claims impact | Liability adjusters scrutinize even minor claimant fault |
Worked example: A driver suffers $100,000 in damages but is found 5% at fault for not signaling. In a 51% modified-comparative state she would collect $95,000. In North Carolina she collects $0 — her 5% fault completely bars recovery.
Auto Liability Minimums (50/100/50, effective July 1, 2025)
Every NC driver must carry minimum liability limits, and Uninsured/Underinsured Motorist (UM/UIM) coverage must be carried. Session Law 2023-133 (Senate Bill 452) raised the minimums for all policies issued or renewed on or after July 1, 2025; the prior floor was 30/60/25.
| Coverage | Old Minimum (pre-7/1/2025) | Current Minimum |
|---|---|---|
| Bodily Injury per person | $30,000 | $50,000 |
| Bodily Injury per accident | $60,000 | $100,000 |
| Property Damage | $25,000 | $50,000 |
| Uninsured Motorist | Must equal liability limits; cannot reject UM | |
| Underinsured Motorist | Mandatory when limits exceed the statutory minimum |
Trap: UM cannot be rejected in North Carolina; UIM applies when the at-fault driver carries less than the injured party's limits. Memorize the current digits as 50/100/50 — if an answer choice shows 30/60/25, that is the pre-2025 limit.
Residual Market & Coastal Programs
North Carolina runs two distinct residual markets — do not confuse them.
- NC Beach Plan / NC Insurance Underwriting Association (NCIUA) — the property insurer of last resort providing wind and hail coverage in the 18 coastal counties; funded by assessments on property insurers.
- NC Reinsurance Facility — the auto residual mechanism. Every auto insurer must participate; high-risk policies are ceded to the Facility while "clean risk" business stays in the voluntary market, guaranteeing all drivers can obtain coverage.
Continuing Education & License Maintenance
Resident producers renew on a 2-year cycle tied to the last day of the birth month (odd/even year by birth year).
| Requirement | Detail |
|---|---|
| Total CE | 24 hours every 2 years |
| Ethics | 3 of the 24 hours must be Ethics |
| Flood (property licensees) | 3 hours flood insurance in the first period, then every 4 years |
| Renewal fee | None; $75 late fee with up to a 4-month grace period |
High-Yield Numbers to Memorize
| Topic | Value |
|---|---|
| Pre-license hours | 0 (HB 737, 10/1/2025) |
| Questions | 55 Property + 55 Casualty |
| Time per part | 75 minutes |
| Passing score | Scaled score of 70 on each exam |
| Exam fee | $45 per part ($90 combined) |
| Fingerprint fee | $38 |
| Auto minimums | 50/100/50 (eff. 7/1/2025; was 30/60/25) |
| Beach Plan counties | 18 coastal |
| Contributory negligence states | 4 + DC |
| CE | 24 hrs / 2 yrs (3 ethics) |
Reminder: This guide covers North Carolina-specific law. Complete the national Property & Casualty exam prep first for the foundational insurance principles that make up most of the test.
How is the combined North Carolina Property & Casualty exam scored?
A single 70% score across all 110 questions combined
A scaled score of 75 on the combined 110 questions
60% on Property and 70% on Casualty
A scaled score of 70 must be achieved separately on each exam
A North Carolina driver sustains $80,000 in injuries but is found 10% at fault. Under NC law, how much can she recover from the other driver?
$72,000 — reduced by her 10% fault
$80,000 — fault under 50% does not reduce recovery
$40,000 — split evenly between the parties
$0 — any plaintiff fault bars recovery
Which statement about North Carolina pre-licensing education is correct as of 2026?
House Bill 737 eliminated mandatory pre-licensing education but the state exam is still required
Candidates must complete 40 hours of pre-licensing before scheduling the exam
The proctored course Certificate Exam is still required at the test center for all applicants
Pre-licensing education was eliminated along with the state licensing exam
Which program is North Carolina's residual market for high-risk AUTO insurance?
The NC Beach Plan (NCIUA)
The NC Guaranty Association
The Federal FAIR Plan
The NC Reinsurance Facility
What are North Carolina's minimum auto liability limits, and what is the rule for Uninsured Motorist coverage?
25/50/25, and UM may be rejected in writing
30/60/25, and UM must be rejected in writing
20/40/15, and UM is optional
50/100/50, and UM cannot be rejected
What continuing education must a North Carolina resident property producer complete?
24 hours every 2 years including 3 ethics hours, plus a 3-hour flood course in the first period and every 4 years
40 hours every year including 5 ethics hours
12 hours every 2 years with no ethics requirement
24 hours every 4 years including 6 ethics hours
Sections you finish are checked off in the contents.