Get Licensed: Auto Insurance Agent In North Carolina

If you're looking to become a licensed auto insurance agent in North Carolina, there are a few key steps you need to take. Firstly, you'll need to complete a pre-licensing education course, which will prepare you for the state licensing exam. This course must meet the minimum hour requirements set by the state. After completing the course, you can submit your insurance license application through the National Insurance Producer Registry (NIPR) and pay the associated fees. You will then need to complete a fingerprinting and background check process, which is required by the North Carolina Department of Insurance. Finally, you'll need to pass the relevant North Carolina insurance license exam, which will cover both general insurance product knowledge and state-specific insurance laws and regulations.

Complete a pre-licensing course

To become a licensed auto insurance agent in North Carolina, you'll need to complete a pre-licensing course. This is an important step as it will dramatically increase your chances of passing your exam on the first attempt, which will save you time and money.

There are a variety of pre-licensing courses available, and you can choose one based on your preferences and requirements. For example, if you want to sell auto insurance, you'll need a Property & Casualty (P&C) license. On the other hand, if you're interested in selling health insurance, you'll need to pass the Accident and Health or Sickness Agent exam.

When selecting a pre-licensing course, consider factors such as flexibility, price, and the course provider's reputation. The course duration will depend on the type of license you're pursuing. For most licenses, the pre-licensing course will be a minimum of 20 hours, while the Medicare Supplement/Long-Term Care line requires only 10 hours.

You can opt for online pre-licensing courses, which offer the convenience of studying from home. These courses are usually available 24/7, giving you the flexibility to study at your own pace. Online courses typically provide materials such as pre-licensing books, candidate guides, sectional quizzes, and access to instructors for support.

After completing the pre-licensing course, you will receive an Examination Admission Ticket, which is valid for 90 days. Make sure to schedule and attempt your licensing exam within this time frame.

Submit an insurance license application

To submit an insurance license application in North Carolina, you must first complete a pre-licensing course. This course must be approved by the state and cover a minimum of 20 hours of content. There are some exceptions to this requirement, such as if you are a Certified Financial Planner, Certified Insurance Counselor, or a Registered Health Underwriter.

Once you have completed the required pre-licensing course, you can submit your application online through the National Insurance Producer Registry (NIPR) for a fee of $82, plus a fee of $50 per line of authority. There is also a processing fee of $5.60 per application.

It is important to note that you must complete all subsequent steps and meet any licensing requirements within six months of submitting your application. Failure to do so will result in your application being canceled, and you will have to start the process again.

After submitting your application, you will need to complete a fingerprinting and background check process. Instructions for this will be sent to you via email, and you will need to submit your fingerprints electronically through Live Scan. This process costs $38 and will initiate a background check to ensure you meet the state's insurance agent regulations.

You will need to submit your fingerprints within 30 days of filing your application.

Pass the North Carolina insurance exam

Passing the North Carolina insurance exam is a pivotal part of becoming a licensed insurance agent in the state of North Carolina. Here is a comprehensive guide to help you pass the exam.

Exam Basics

The state of North Carolina uses Pearson VUE to administer its insurance agent licensing. You can register and book all of your licensing examinations through the Pearson VUE website. Your test can be carried out online or in person.

Each major insurance line examination is made up of multiple-choice questions and includes both general and state-specific material. The general questions test your federal insurance product and agent knowledge, while the state-specific questions cover North Carolina insurance regulations and laws that you need to know to operate as an insurance agent.

Each licensing examination has multiple versions, or "forms," which contain different questions. Consequently, your exam can be easier or more difficult than another candidate's, even if you are being tested on the same insurance line on the same day.

Pre-License Course

Getting a pre-license course is strongly recommended and is a legal requirement in North Carolina. It will help you familiarise yourself with the large amount of content you need to memorise.

Study Time

Make sure to allocate enough time to prepare for your exam. It is recommended to set aside one to two weeks to prepare, allowing you to go through all of the material at least twice.

Test Anxiety

• Establish a consistent pre-test routine by acclimating yourself to exam conditions through practice exams at home.
• Get plenty of sleep in the week leading up to your exam. Lack of sleep can increase anxiety and self-doubt.
• Tailor your studying to the exam. Remember, there are no critical thinking or common-sense questions involved; all questions are purely factual.
• Arrive early. If you plan to sit for the exam in person, arrive at least 30 minutes early to get used to your surroundings and check in with the centre's administrator.

Exam Content

The North Carolina insurance exam will cover the following content areas:

• Types of individual life insurance (e.g., whole life insurance, combination policies, the annuity principle)
• Policy provisions, options, and other features (e.g., nonforfeiture values, beneficiary provisions, additional rights or optional benefits)
• Other life topics (e.g., types of group contracts, tax-qualified retirement plans, business uses of life insurance)
• Accident & Health Insurance Policies (e.g., disability income insurance, basic medical expense insurance, accidental death and dismemberment coverage)
• Accident & Health Insurance Provisions (e.g., individual policy mandatory provisions, approaches related to group insurance)
• Other Accident & Health Topics (e.g., Social Security disability, federal income taxation, misrepresentation and concealment)
• Terms and Concepts related to property and casualty insurance (e.g., economic loss, indemnity, insurable interest, direct loss vs. indirect loss)
• Personal Insurance Coverages (e.g., standard fire policy, homeowner's policies, national flood insurance program)
• Commercial Insurance Coverages (e.g., building and personal property coverage, business income coverage, equipment breakdown)
• North Carolina Statutes and Regulations pertinent to property and casualty insurance (e.g., contract of insurance, commissioner of insurance, general regulations for insurance)

Exam Format

The North Carolina insurance exam consists of multiple-choice questions and is administered via a computer. The number of questions will depend on the specific exam you are taking. For example, the Life, Accident & Health or Sickness, Property, and Casualty exams all consist of 55 questions, while the Personal Lines Insurance Examination has 80 scored questions and 16 pre-test questions.

You will have a time limit of 75 minutes for the Life, Accident & Health or Sickness, Property, and Casualty exams, and 1 hour and 45 minutes for the Personal Lines Insurance Examination.

To pass the exam, you will need to achieve a score of 70% or higher.

Retakes

If you do not pass the exam on your first attempt, you will be able to retake it up to 90 days after the completion of your pre-licensing education or up to 5 total attempts, depending on which comes first.

Complete a fingerprint and background check

To become a licensed auto insurance agent in North Carolina, you must complete a fingerprint and background check. This is a crucial step in the process, as it helps ensure that only qualified and reputable individuals are licensed to sell insurance in the state. Here's a detailed guide on how to complete this step:

After submitting your insurance license application through the National Insurance Producer Registry (NIPR), you will receive an email with instructions on completing your fingerprinting and background check. This process is required by the state of North Carolina under 11 NCAC 06A.0418 of its Administrative Code.

In the email, you will find a link to access and print the most recent Insurance Producer Fingerprint Criminal Background Packet. This packet contains important information and forms that you need to complete the process.

Your fingerprints are typically submitted electronically through Live Scan. Live Scan is a digital fingerprinting service offered by law enforcement agencies in North Carolina. You can find a list of Live Scan locations provided by the NC Department of Insurance if you are unsure where to go.

When you visit the designated law enforcement agency, bring a photo ID and ensure that you have completed pages 1 and 3 of the packet. A law enforcement officer will take your fingerprints and sign page 2 of the packet. The agency may charge a small fee for this service.

After your fingerprints have been taken, submit the completed fingerprint form to the NC Licensing Office of Pearson VUE. You can send the form by fax, email, or mail. This step costs $38 and initiates a comprehensive background check into your past conduct, ensuring you meet North Carolina's insurance agent regulations.

It is important to note that you must submit your fingerprints within 30 days of filing your application for an Insurance Producer License through NIPR. Failure to do so may result in delays or complications with your license application.

Apply for relevant securities licenses

Once you've passed your exams and your licensing application has been approved, you'll need to obtain any relevant securities licenses. This is necessary if you plan on selling advanced life insurance products. To do this, you'll need to pass the Securities Industry Essentials (SIE) exam and obtain the relevant securities licenses. These include the Series 6, 7, and 63 licenses.

The SIE exam is designed to assess your knowledge of basic securities industry information, including knowledge of core securities products, the structure and function of the securities industry markets, the regulatory agencies and their functions, and regulated and prohibited practices.

The Series 6 license, also known as the Investment Company and Variable Contracts Products Limited Representative license, allows you to sell a wide range of securities products, such as mutual funds, variable annuities, and variable life insurance.

The Series 7 license, known as the General Securities Representative license, is more comprehensive and allows you to sell a broader range of securities products, including stocks, bonds, options, and other investments, in addition to the products covered by the Series 6 license.

The Series 63 license, or the Uniform Securities Agent State Law Examination, is required for individuals who wish to act as securities agents in their state. It focuses on the laws, regulations, and ethical practices related to the sale of securities products.

It's important to note that these licenses have specific requirements and qualifications that must be met before you can apply. Be sure to review the details of each license and the process for obtaining them. Additionally, there may be ongoing continuing education requirements to maintain these licenses.

By obtaining these relevant securities licenses, you'll be able to offer a wider range of products and services to your clients, particularly in the area of advanced life insurance products.

Frequently asked questions