Get A Life Insurance License: North Carolina Requirements

Getting a life insurance license in North Carolina is a straightforward process, but it requires dedication and commitment. The North Carolina Department of Insurance (NCDOI) has outlined a set of steps that aspiring life insurance agents must follow to obtain their license and start their journey in the insurance industry. This includes completing a pre-licensing course, passing the state licensing exam, and fulfilling various requirements, such as fingerprint-based background checks and applications. The process is designed to ensure that individuals are well-equipped with the necessary knowledge and skills to effectively serve their clients and navigate the complexities of life insurance in the state of North Carolina.

Complete a pre-licensing course

To obtain a life insurance license in North Carolina, you must complete a pre-licensing course. This is a mandatory step before you can take the state licensing exam. The pre-licensing course will prepare you to pass the state exam on your first try.

The pre-licensing course covers all the material that will be on the state licensing exam. The topics for the life insurance course include but are not limited to:

• Basic Principles of Life Insurance and The Insurance Industry
• Life Insurance Policies, Provisions, Options, and Riders
• Life Insurance Premiums, Proceeds, and Beneficiaries
• Life Insurance Underwriting and Policy Issue
• North Carolina Statutes and Regulations

The course is at least 20 hours long and is easy to follow. It concludes with a final exam comprising 165 questions. To pass, you must correctly answer at least 70% of the questions. There is no limit to the number of times you can retake the test. Once you pass, you will receive a Certificate of Completion, also known as an Exam Admission Ticket, which you need to sit for the state licensing exam.

The Exam Admission Ticket is valid for 90 days or five exam attempts, whichever comes first. You must pass the state exam within this 90-day period. If you do not pass within the allotted time or attempts, you will need to retake the pre-licensing course and obtain a new Exam Admission Ticket.

The pre-licensing course can be taken online, offering flexibility and convenience. Some providers also offer supplementary web classes, flashcards, and study manuals to enhance your learning experience.

Register for the state licensing exam

Registering for the state licensing exam is the next step after completing a pre-licensing course. This is done through the Pearson VUE website, where you can make an exam reservation by selecting "Make an Exam Reservation" and following the on-screen prompts.

The Exam Admission Ticket, which is required to sit for the state licensing exam, is obtained by passing the pre-licensing course with a score of at least 70%. This ticket is valid for 90 days or five exam attempts, whichever comes first. The state exam must be passed within this 90-day timeframe.

The state licensing exam must be taken in person at a Pearson VUE testing site and may include an additional provider fee. The exam fee must be paid at the time of reservation by credit or debit card, voucher, or electronic check. It cannot be paid at the testing centre.

It is important to arrive at the testing centre 30 minutes before your exam time to allow for check-in procedures. Arriving late will result in forfeiture of your exam fee and you will not be admitted to the test.

You will be required to present a valid government-issued ID, a secondary ID, your National Producer Number (NPN), and your Exam Admission Ticket. No personal items are allowed into the testing centre, and all electronic devices must be left in your vehicle or checked into provided storage space. Food, chewing gum, and tobacco products are prohibited, but you are allowed to bring a beverage.

The exam will be taken on a computer and will be in a multiple-choice format. It will cover a general section with basic insurance product knowledge and a state-specific section with insurance laws, rules, regulations, and practices unique to North Carolina.

The exam length and number of questions will depend on the type of insurance license being obtained. For example, the Life Agent exam is 1 hour and 15 minutes long with 60 questions, while the Company Independent Adjuster exam is 2 hours and 15 minutes long with 120 questions.

To pass the exam, you must score at least 70%. You will receive a pass or fail notification immediately after completing the exam. If you fail, you can reschedule a new exam after 24 hours. After five attempts or 90 days, whichever comes first, you will need to retake the pre-licensing course.

Take and pass the state examination

Taking and passing the state examination is the most crucial step in obtaining your life insurance license in North Carolina. Here's a detailed guide to help you prepare for and pass this exam:

Preparation:

Before you take the state examination, it is essential to complete a pre-licensing course. This requirement is mandatory for everyone seeking a life insurance license in North Carolina, unless they are specifically exempt. The pre-licensing course will provide you with the knowledge and skills needed to pass the state exam. The course typically covers important topics such as basic principles of life insurance, types of life insurance policies, annuities, life insurance underwriting, and North Carolina-specific statutes and regulations related to life insurance.

The pre-licensing course for life insurance in North Carolina requires a minimum of 20 hours of study. You must pass the final exam for the pre-licensing course with a score of at least 70%. Upon successful completion, you will receive a Certificate of Completion, also known as an Exam Admission Ticket, which is required to sit for the state licensing exam.

Scheduling:

Once you have your Exam Admission Ticket, you can schedule your state licensing exam. In North Carolina, the state licensing exams are administered by Pearson VUE. You can make your exam reservation on the Pearson VUE website or by calling them at (800) 274-0668. Remember to schedule your exam within the validity period of your Exam Admission Ticket, which is typically 90 days or 5 exam attempts, whichever comes first.

Exam Day:

On the day of your state licensing exam, make sure to arrive at the Pearson VUE testing centre at least 30 minutes early to allow for the check-in process. Bring two valid forms of government-issued identification, with one being a primary ID that includes your photograph and signature, and the other being a secondary ID with your signature. Additionally, you must present your Exam Admission Ticket and know your National Producer Number (NPN). Personal items, electronic devices, and food are not allowed in the testing centre, so plan accordingly.

Exam Format and Content:

The life insurance state licensing exam in North Carolina consists of 60 multiple-choice questions, including 55 scored questions and 5 pre-test questions that will not be counted toward your final score. The time limit for this exam is 75 minutes, and you must achieve a passing score of at least 70%, which means correctly answering at least 39 out of the 55 scored questions.

The exam will cover both a general section with basic insurance product knowledge and a state-specific section focusing on insurance laws, rules, regulations, and practices unique to North Carolina. The pre-licensing course should have provided you with the necessary knowledge to tackle these topics effectively.

Results and Retakes:

Immediately after completing your exam, you will receive a pass or fail notification. If you pass, your score will be electronically submitted to the National Insurance Producer Registry (NIPR) to match your pending license application. If you fail, you will receive a score report with a numeric score and diagnostic information. You can use this information to guide your preparation for your next attempt. Remember, you have a limited number of attempts (usually 5) and a time frame (often 90 days) within which you must pass the exam. If you exhaust all attempts or fail to pass within the given time, you will need to retake the pre-licensing course before being eligible to retake the state exam.

Get fingerprinted

North Carolina requires fingerprint impressions for all unlicensed applicants. If you are applying for a license as an individual, a $38 fingerprint fee is required.

After submitting your license application, print the Fingerprint Submission Packet-Release forms from the NIPR email link. Contact your local law enforcement agency to find out their operating hours for fingerprinting services and whether they offer Livescan fingerprints for non-criminal reasons. Note that fingerprint cards will not be accepted.

Take the form packet, including the cover page, to your local law enforcement agency for digital fingerprints. You will need to bring a photo ID. Complete pages 1 and 3 of the packet, and have the local law enforcement person taking the prints sign page 2. The local law enforcement agency may charge a fee for taking your fingerprints.

Finally, send the completed SBI forms (pages 1 through 3) to the North Carolina Licensing Office of Pearson VUE by fax, email, or mail. The SBI Release Form must be signed and sent to the North Carolina Licensing Office of Pearson VUE.

If you are applying for a Public Adjuster License, you will need to submit your fingerprints within 30 days of applying for a license.

Apply for a North Carolina Insurance License

To get a North Carolina Insurance License, you must complete a pre-licensing course, pass the state licensing exam, and submit an electronic application. Here is a step-by-step guide to help you through the process:

Step 1: Complete a Pre-Licensing Course

The first step to obtaining your North Carolina Insurance License is to complete a pre-licensing course. This course will prepare you for the state licensing exam. The pre-licensing course requirement can be waived for certain individuals holding specific designations or certifications, such as Certified Employee Benefits Specialist (CEBS), Certified Financial Planner (CFP), or a degree in insurance. However, if they fail the exam, they must meet the pre-licensing education requirements before retaking it.

The pre-licensing course covers various insurance concepts, definitions, insurance laws, and agent regulations. It is typically a 20-hour course, depending on the specific line of authority you choose (health insurance, life insurance, property and casualty insurance, or any combination). You must pass a final exam at the end of the course, monitored by a disinterested third party, with a score of 70% or higher to receive your Examination Admission Ticket, which is required to take the state licensing exam.

Step 2: Register for the State Licensing Exam

Once you have completed the pre-licensing course and received your Examination Admission Ticket, you can register for the state licensing exam. The exam is administered by Pearson VUE, and you can make a reservation on their website or by calling them. There is an exam fee that must be paid at the time of reservation.

Step 3: Take and Pass the State Licensing Exam

The state licensing exam will cover both general insurance product knowledge and specific insurance laws, regulations, and practices unique to North Carolina. The exam is multiple-choice and taken on a computer. The exam fee is $45 per line of authority, and you must score 70% or higher to pass.

Step 4: Complete an Electronic Application

After passing the state licensing exam, you must complete an electronic application through the National Insurance Producer Registry website. There is an application fee, and you may also need to submit fingerprints after completing the application. You will be assigned a National Producer Number (NPN) during the application process, which is used to track individuals and business entities nationally.

Step 5: Get Fingerprinted

As part of the licensing process, North Carolina requires fingerprint impressions for all unlicensed applicants. You can print the Fingerprint Submission Packet-Release forms from the email you receive after submitting your license application. Contact your local law enforcement agency to schedule an appointment for fingerprinting and ensure they offer Livescan fingerprints for non-criminal reasons. There may be a fee for this service.

Step 6: Print Your License

After receiving notification that your application has been processed, you can print your license from the SBS Connect website. The first print is free, so it is recommended to save a copy for your records.

Additional Considerations:

• It is important to stay on top of any continuing education requirements to maintain your license. In North Carolina, insurance producers must complete 24 hours of continuing education every two years, including three hours focusing on ethics.
• There is also a renewal fee of $84 to keep your license valid.

Frequently asked questions