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North Carolina Life & Health Insurance Practice Test
Practice with 2,180 national questions and 450 North Carolina-specific questions. Every question is free to answer and includes a full explanation.
Use North Carolina law questions alongside the national Life & Health bank. When an answer depends on a state rule, keep that rule in your notes instead of applying it to every jurisdiction.
Try a free 10-question North Carolina practice set
National concepts and North Carolina rules, with explanations after each answer. No signup or timer.
Review North Carolina practice questions
Read the reasoning behind each answer, then try the practice set above.
How many continuing education credit hours must a North Carolina life producer complete in each biennial compliance period, and what subject-matter requirement applies?
Answer: C. Twenty-four credit hours, including three hours of ethics
Why C is correct
Under 11 NCAC 6A .0802(a), together with G.S. 58-33-130, a licensee must complete 24 credit hours of continuing education in each biennial compliance period, of which 3 hours must be ethics. The requirement applies to life, accident and health, property, casualty, personal lines, variable, and adjuster licensees alike.
Why the other options are wrong
- A) Fifteen credit hours is a figure from other jurisdictions' regimes; North Carolina requires 24 with three hours of ethics.
- B) Thirty hours with five of ethics overstates the rule on both counts; the North Carolina totals are 24 and 3.
- D) Twelve hours with no subject requirement understates the mandate and omits the mandatory three-hour ethics component.
Memory hook
CE every two years: 24 hours, and 3 of them are ethics.
Under the ethical standards the Commissioner enforces for North Carolina producers, which conduct is expected of a producer serving a client?
Answer: D. Acting honestly and fairly balancing the interests of the client and the insurer.
Why D is correct
Under the ethical standards rule, 11 NCAC 4 .0423, a North Carolina producer is expected to act with honesty and integrity and to deal fairly with both the client and the insurer. The producer occupies a position of trust, so the rule requires balanced judgment rather than self-dealing, disclosure breaches, or unsupported promises about future results.
Why the other options are wrong
- A is wrong because placing business based on the producer's commission rather than the client's needs is a conflict of interest, not ethical conduct.
- B is wrong because disclosing one client's confidential information to another violates the duty of confidentiality.
- C is wrong because guaranteeing future dividends or policy performance is a misrepresentation; dividends and results are not guaranteed.
Memory hook
Ethics rule in one line: honest, fair, and balanced between client and insurer.
An insured in Greensboro held several individual life insurance policies from a failed member insurer, with total contractual obligations far above the statutory cap. What is the maximum the North Carolina Life and Health Insurance Guaranty Association provides for all benefits for this one life, regardless of the number of policies?
Answer: C. $300,000 for all benefits, including cash values
Why C is correct
Under G.S. 58-62-21(d)(2),(6), the Association's aggregate obligation for any one life is the lesser of the contractual obligations or $300,000 for all benefits, including cash values, no matter how many policies the person held with the insolvent insurer. North Carolina folds cash values into the single $300,000 aggregate cap; there is no separate cash-value sublimit and no percentage-based payment formula.
Why the other options are wrong
- A) North Carolina has no separate lower cash-value sublimit; cash values count inside the $300,000 aggregate limit.
- B) $500,000 is the cap for health benefit plans under G.S. 58-62-21(d)(2a), not the aggregate life cap.
- D) North Carolina uses fixed dollar caps, not a proportional or percentage recovery rule.
Memory hook
One life, one cap: three hundred thousand, cash values included.
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Check your North Carolina exam requirements
Use our state guide for exam formats, fees, registration, pre-licensing requirements and official sources. Guide facts last verified: 2026-09-02.
Read the North Carolina exam guide →This free practice set is a study aid. It is not the official exam, a full-length simulation, or a prediction of your result.
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