NC Life & Health study guide
NC Life & Health · Work through your exam, one topic at a time.
The North Carolina Life & Health agent license is the credential that allows a producer to solicit, negotiate, and sell life, accident, and health insurance products in North Carolina. It is issued by the North Carolina Department of Insurance (NCDOI), which also sets the licensing rules, continuing-education obligations, and market-conduct standards tested on the exam; the test itself is delivered through Pearson, which now brands its testing business as Pearson Professional Assessments. Candidates come from career-change backgrounds as often as from agencies, call centers, and employee-benefits roles, and no prior insurance experience is assumed. The exam is multiple choice and is organized around three content areas. Topics on this exam: Insurance Regulation, Licensing and North Carolina Insurance Law, Life Insurance Principles, Products and Policy Provisions, and Health Insurance Principles, Products and Policy Provisions. The NC Life & Health study guide has 3 sections and about 2,402 words.
01Insurance Regulation: Purpose, Structure, and the North Carolina Department of Insurance
Insurance is treated as a business affected with a public interest. Buyers pay in advance for a promise they may not test for decades, and that promise is worthless if the insurer becomes insolvent.
385 words, about 2 min02Life Insurance Principles, Products and Policy Provisions
To be licensed in North Carolina a producer must be at least 18 , complete an approved prelicensing course for each line requested, pass the state exam, submit fingerprints for a criminal background check, and pay the fee. The license must be appointed by an insurer before the producer can submit business for it.
811 words, about 4 min03Health Insurance Principles, Products and Policy Provisions
Insurance handles pure risk (loss or no loss) - never speculative risk (gain or loss, such as gambling). Insurers pool exposures so that the law of large numbers makes losses predictable, and they guard against adverse selection (the sick buying coverage) through underwriting.
1,206 words, about 6 min