North Carolina Property and
Casualty State Exam | Latest
2025/2026 Edition | Verified
Questions and Answers | A+ Graded
Section 1: Introduction
This document provides a complete and updated study resource for the North Carolina
Property and Casualty State Licensing Exam, tailored to the 2025/2026 testing standards. It
features verified exam-style questions with 100% correct answers, covering core topics such
as property and casualty fundamentals, homeowners and dwelling policies, auto insurance,
commercial package policies, workers’ compensation, general liability, state regulations, and
licensing laws. Graded A+ and reviewed for accuracy, this guide is ideal for insurance
candidates preparing for state licensure in North Carolina.
Section 2: Exam Questions and Answers
Format: Multiple-choice questions
Four answer choices per question (A–D)
Correct answer highlighted
Explanations reference North Carolina Department of Insurance guidelines, where
applicable
1. What is the primary purpose of property insurance in North Carolina?
(a) To cover medical expenses
(b) To protect against financial loss from property damage
(c) To provide liability for auto accidents
(d) To fund business operations
Explanation: North Carolina Department of Insurance (NCDOI) defines property
insurance as protection against physical damage or loss.
2. Which policy covers personal property and liability for homeowners in NC?
(a) Commercial Package Policy
(b) HO-3 Homeowners Policy
(c) Auto Policy
(d) Workers’ Compensation
Explanation: NCDOI recognizes the HO-3 as the standard homeowners policy in
North Carolina.
, 3. What is the minimum auto liability coverage required in North Carolina?
(a) 25/50/15
(b) 30/60/25
(c) 50/100/50
(d) 100/300/50
Explanation: NCDOI mandates 30/60/25 (bodily injury/property damage) as
minimum coverage.
4. Which coverage protects against damage to another person’s property in an auto
accident?
(a) Collision
(b) Property Damage Liability
(c) Comprehensive
(d) Medical Payments
Explanation: NCDOI includes property damage liability in auto insurance
requirements.
5. What is a key feature of a Commercial Package Policy (CPP)?
(a) Covers only personal vehicles
(b) Combines multiple property and liability coverages
(c) Excludes business property
(d) Limits to workers’ compensation
Explanation: NCDOI notes CPPs as customizable for business needs.
6. Which insurance is mandatory for employers with three or more employees in NC?
(a) General Liability
(b) Workers’ Compensation
(c) Auto Insurance
(d) Homeowners Insurance
Explanation: NCDOI requires workers’ compensation for employers with three or
more employees.
7. What does general liability insurance typically cover?
(a) Employee injuries
(b) Bodily injury and property damage to third parties
(c) Auto repairs
(d) Home structural damage
Explanation: NCDOI defines general liability as protection against third-party claims.
Casualty State Exam | Latest
2025/2026 Edition | Verified
Questions and Answers | A+ Graded
Section 1: Introduction
This document provides a complete and updated study resource for the North Carolina
Property and Casualty State Licensing Exam, tailored to the 2025/2026 testing standards. It
features verified exam-style questions with 100% correct answers, covering core topics such
as property and casualty fundamentals, homeowners and dwelling policies, auto insurance,
commercial package policies, workers’ compensation, general liability, state regulations, and
licensing laws. Graded A+ and reviewed for accuracy, this guide is ideal for insurance
candidates preparing for state licensure in North Carolina.
Section 2: Exam Questions and Answers
Format: Multiple-choice questions
Four answer choices per question (A–D)
Correct answer highlighted
Explanations reference North Carolina Department of Insurance guidelines, where
applicable
1. What is the primary purpose of property insurance in North Carolina?
(a) To cover medical expenses
(b) To protect against financial loss from property damage
(c) To provide liability for auto accidents
(d) To fund business operations
Explanation: North Carolina Department of Insurance (NCDOI) defines property
insurance as protection against physical damage or loss.
2. Which policy covers personal property and liability for homeowners in NC?
(a) Commercial Package Policy
(b) HO-3 Homeowners Policy
(c) Auto Policy
(d) Workers’ Compensation
Explanation: NCDOI recognizes the HO-3 as the standard homeowners policy in
North Carolina.
, 3. What is the minimum auto liability coverage required in North Carolina?
(a) 25/50/15
(b) 30/60/25
(c) 50/100/50
(d) 100/300/50
Explanation: NCDOI mandates 30/60/25 (bodily injury/property damage) as
minimum coverage.
4. Which coverage protects against damage to another person’s property in an auto
accident?
(a) Collision
(b) Property Damage Liability
(c) Comprehensive
(d) Medical Payments
Explanation: NCDOI includes property damage liability in auto insurance
requirements.
5. What is a key feature of a Commercial Package Policy (CPP)?
(a) Covers only personal vehicles
(b) Combines multiple property and liability coverages
(c) Excludes business property
(d) Limits to workers’ compensation
Explanation: NCDOI notes CPPs as customizable for business needs.
6. Which insurance is mandatory for employers with three or more employees in NC?
(a) General Liability
(b) Workers’ Compensation
(c) Auto Insurance
(d) Homeowners Insurance
Explanation: NCDOI requires workers’ compensation for employers with three or
more employees.
7. What does general liability insurance typically cover?
(a) Employee injuries
(b) Bodily injury and property damage to third parties
(c) Auto repairs
(d) Home structural damage
Explanation: NCDOI defines general liability as protection against third-party claims.
