State RegulationsNC specificDifficulty 1/5
Under North Carolina law, how does the license term of a licensed business entity differ from that of an individual producer's license?
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under G.S. 58-33-125(a) and G.S. 58-33-26(j), a business entity license carries a $100 fee and expires on March 31 each year unless the renewal fee is paid. An individual producer's license, by contrast, has no fixed expiration under G.S. 58-33-26(l) - it remains in force until suspended or revoked, with compliance maintained through continuing education and insurer appointments.
Why the other options are wrong
- A) The entity's license does have a renewal requirement - it lapses each March 31 unless the fee is paid - unlike the producer's license.
- C) The comparison is backwards: the entity license is the one with the annual expiration, and no two-year producer renewal exists.
- D) Continuing education sustains the producer's compliance but does not create an annual renewal deadline for either license.
Memory hook
Entity licenses die each March 31; producer licenses never expire.