North Carolina Insurance Pre-Licensing FAQs
NOTE: Unless indicated otherwise, the information below pertains to both the Life Insurance and Accident and Health Insurance Pre-Licensing Courses.
Who is required to take these courses?
Anyone wishing to obtain a North Carolina Life Insurance license or Health (Accident and Health or Sickness) Insurance license must successfully complete the appropriate course. Successfully completing the course involves going through 20 hours of the material and passing the final exam with at least a 70% score. Note that the 20-hour requirement is a minimum — you can always spend more time in the course, and most do to successfully prepare for the state examination.
Are these courses approved by the state of North Carolina?
Yes. Both the Life Insurance Pre-licensing course and the Health (Accident and Health or Sickness) Pre-licensing course have been approved by the North Carolina Department of Insurance.
Are there exemptions to taking these courses?
Yes, there are specific qualifications that allow a licensing candidate to be exempted from completing the pre-license course. However, those exempted from the study requirements must still take the state insurance examinations.
Exempt from the Life Insurance pre-licensing course:
- Certified Employee Benefits Specialist (CEBS)
- Certified Financial Planner (CFP)
- Certified Insurance Counselor (CIC)
- Holder of a degree in insurance (associate or bachelor's)
- Chartered Life Underwriter (CLU)
- Chartered Financial Consultant (ChFC)
- Life Underwriter Training Council Fellow (LUTCF)
- Fellow Life Management Institute (FLMI)
Exempt from the Accident and Health or Sickness Insurance pre-licensing course:
- Certified Employee Benefits Specialist (CEBS)
- Health Insurance Associate (HIA)
- Registered Employee Benefits Counselor (REBC)
- Registered Health Underwriter (RHU)
- Holder of a degree in insurance (associate or bachelor's)
How long are the courses?
Each course requires at least 20 hours of study.
Can I complete this course as quickly as I want?
Due to state regulation, students will only be able to spend eight hours per calendar day on the course. Once you have used your allotted eight hours, you will be locked out and be unable to re-enter the course for another 24 hours.
What topics are covered?
Both the Life Insurance and Health Insurance pre-licensing courses are designed to present students with important information related to the field, including:
- Basic principles of life insurance, the insurance industry, and types of life insurance policies, including term and permanent insurance policies
- Annuities, including annuity principles and annuity features
- Life insurance policies, provisions, and other features, including life insurance premiums, proceeds, and beneficiaries
- Life insurance underwriting and policy issue
- Other life topics, such as group insurance and conversion, tax-qualified retirement plans, Social Security, federal taxation, cost comparison methods, formation of the life insurance contracts, and variable life insurance
- North Carolina statutes and regulations pertinent to life insurance
The Accident and Health Insurance pre-licensing course is designed to present students with important information related to the field, including:
- Accident and health insurance policies, including disability income, basic and major medical expense plans, managed care environments, and more
- Accident and health insurance policy provisions, including mandatory, optional, and other provisions
- Other accident and health topics, including group insurance, Social Security, federal taxation issues, misrepresentation and concealment, and more
- North Carolina statutes and regulations pertinent to accident and health insurance
How do these courses help me understand all of the information?
There is a lot of information to go over, and the material has been presented in a clear manner. Quizzes at the end of each lesson will familiarize you with the concepts from each section and help prepare you for the final exam.
Are the quizzes scored?
The incremental quizzes that appear at the end of each lesson are scored, and you must successfully pass them with a score of at least 70% in order to continue in the course.
Are there any other prompts during the course?
Yes. At three points in the course — in the introduction, halfway through the course, and at the end of the course — North Carolina requires that students correspond with their instructor. Students must enter their name, e-mail address, and a question or comment for their course instructor before moving forward in the course.
How long is the final exam?
The final exam for each course contains 165 multiple choice questions.
What is the score needed to pass the final exam?
You must answer at least 70% of the questions correctly in order to pass.
What if I don't pass the final exam?
You will have unlimited attempts to pass the final exam. You will not be able to take the state licensing exam until you have successfully passed this course.
What happens once I pass the final exam?
Upon successful completion of the course, you'll be able to download a Certificate of Completion, also called an Exam Admission Ticket.
What do I do with the Exam Admission Ticket?
You will need to take your Exam Admission Ticket with you to the testing center when you sit for the state insurance examination. This ticket is valid for 90 days after successful completion of the course or five exam attempts, whichever happens first.
What happens if I don't pass the state exam within 90 days or after 5 attempts?
Per North Carolina state regulations, if you do not pass the exam within 90 days of earning your Exam Admission Ticket or in five attempts, you must retake the pre-licensing education course before you are eligible to sit for the state exam again.
Once I complete the course, will I still have access to the content?
Yes. You will be able to review the course content at your leisure to review and prepare as much as you need for the state exam.
How do I make a reservation for my state examination?
Candidates who successfully complete this 20-hour pre-licensing course may make their reservation online by visiting the Pearson VUE website and selecting "Make an Exam Reservation." Candidates must make a reservation at least 24 hours before the desired examination date. Candidates who wish to change or cancel their appointment must do so at least 48 hours before the examination.
Candidates who change or cancel a reservation with proper notice may either transfer the fee to a new reservation or request a refund. Candidates who change or cancel a reservation without proper notice will forfeit the examination fee.
How long is the state licensing exam?
The state examination for both the Life Insurance license and Accident and Health or Sickness Insurance license is 1 hour and 15 minutes. North Carolina’s insurance exams include those that are structured as two-part exams and one-part exams. Both the Life Insurance and Accident and Health Insurance examinations are two-part tests.
Each exam consists of 55 scored test questions and 5 additional questions that are referred to as “pre-test” questions and will not be scored or counted toward your final score.
Please note that the time allotted covers both parts. The two parts are scored together, not individually, and candidates must achieve an overall passing score of at least 70% rather than a passing score for each part. This means that at least 39 of the 55 scored questions must be answered correctly. Candidates should monitor their time to ensure they have adequate time for the second part.
What do I do once I pass the state examination?
Once you pass the state licensing exam, you must complete an electronic application on the National Insurance Producer Registry website. If required, fingerprints must be submitted after completing the license application.