Free North Carolina Property & Casualty Insurance License Exam Practice Test
Realistic 50-question practice exam with instant feedback and score reports.
About this practice exam
Free North Carolina Property & Casualty Insurance License Exam practice test with 50 realistic multiple-choice questions, instant grading, and explanations. Study with drill mode, category score reports, and a personalized review plan.
Exam format
- 50 multiple-choice practice questions
- Drill mode with instant feedback and explanations after each answer
Study tips
- Review the official exam content outline before your first practice run.
- Take the full practice exam once to establish a baseline score by category.
- Focus review on categories where you score below the passing threshold.
- Re-take missed questions in drill mode until you can explain each correct answer.
- Schedule the real exam only after consistent passing scores on practice tests.
Sample NC P&C practice questions
Try a few representative questions below. Each includes the correct answer and a short explanation — the same style you'll see in the full practice test.
- Question 1Commercial General Liability
A commercial general liability policy is written on an occurrence basis. An injury occurs on July 1, 2023, but the claim is not reported to the insurer until August 15, 2025. Assuming no policy extensions, what is the primary factor determining if the claim is covered?
- A.The date the claim was reported to the insurer.
- B.The date the injury occurred.(Correct)
- C.The date the policy was initially issued.
- D.The date the policy was in force when the claim was reported.
Explanation
For an occurrence-based policy, coverage is triggered by the date the loss or injury actually happened, regardless of when the claim is reported, as long as the policy was in effect on the date of the occurrence.
- Question 2Business Income Insurance
An insured has a Business Income with Extra Expense coverage form. A fire damages their manufacturing facility, halting production. The policy has a $1,000,000 limit and a 72-hour waiting period. The business incurs $150,000 in extra expenses to minimize the shutdown and resumes partial operations after 30 days, with full operations restored after 90 days. If the net income would have been $200,000 for the 90-day period, how much would the insurer pay for business income loss?
- A.$150,000
- B.$200,000
- C.$350,000(Correct)
- D.$300,000
Explanation
The insurer pays for the net income lost ($200,000) plus the extra expenses incurred ($150,000), totaling $350,000. The waiting period does not apply to extra expenses.
- Question 3Commercial Property Insurance
A commercial property policy covers a building with a replacement cost value of $500,000. The policy has a coinsurance clause requiring 80% coverage. The insured carries a policy with a limit of $300,000. A loss of $100,000 occurs. How much will the insurer pay?
- A.$100,000
- B.$60,000
- C.$75,000(Correct)
- D.$80,000
Explanation
The required insurance is 80% of $500,000 = $400,000. The formula for recovery is (Policy Limit / Required Insurance) * Loss Amount. So, ($300,000 / $400,000) * $100,000 = 0.75 * $100,000 = $75,000.
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Frequently asked questions
How many questions are on this NC P&C practice test?
This practice test includes 50 multiple-choice questions designed to mirror the format and difficulty of the real North Carolina Property & Casualty Insurance License Exam.
Is this NC P&C practice test free?
Yes. You can start practicing for free. Create an account to save progress, track weak categories, and retake the exam.
Do I get explanations after each question?
Yes. In drill mode you see why the correct answer is right, why distractors are wrong, and practical examples where relevant.
How should I use this practice test to prepare?
Take the full exam under timed conditions, review missed questions by category, then focus study on your weakest sections before scheduling the real exam.
Does this replace official exam materials?
No. Use this as a supplement alongside official candidate information bulletins, textbooks, and hands-on experience required for your license or certification.
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