North Dakota Life & Health Insurance Exam — Study Guide

Life and Health Insurance Producer — North Dakota state portion

North Dakota does not give you a separate national and state exam. Since March 2022 the Department has used PSI, and the exam is one part — North Dakota law is tested inside the same 110-item paper as the product content (N.D. Insurance Department, "Resident Producer"; PSI North Dakota Insurance Licensing Examination Candidate Information Bulletin 12/27/2024; checked 2026-09-05). Trap: there is also no combined "Life and Health" licence exam here — Life and Annuity (Product and Laws) and Accident and Health (Product and Laws) are two separate 110-item exams. What follows is what both of them test about North Dakota. Two sources control.

• North Dakota Century Code (NDCC), Title 26.1 — Insurance. Key chapters: 26.1-01 (Commissioner), 26.1-04 (Prohibited Practices), 26.1-26 (Insurance Producers and Consultants), 26.1-33 (Life Insurance), 26.1-34.2 (Annuity Transaction Practices), 26.1-38.1 (Life and Health Insurance Guaranty Association), 26.1-45 (Long-Term Care).
• North Dakota Administrative Code (NDAC), Title 45. Article 45-02 (producer licensing), 45-04 (life), 45-06 (accident and health), 45-11 (guaranty association), 45-14 (consumer privacy).

Rules are stable; numbers move. The Legislative Assembly meets in odd-numbered years and amends Title 26.1 nearly every session, and the Commissioner sets fees by rule. Read the flags below literally. A figure that carries a dated citation was read from that source on that date — it is as good as the source was that day, and no better. A figure still carrying a bracketed verify-current flag was not confirmed from a primary source and must be checked with the North Dakota Insurance Department before you rely on it. Learn the rule; confirm the number at insurance.nd.gov.

1. The Insurance Department and the Commissioner

North Dakota's chief insurance regulator is a separately elected statewide officer — the Insurance Commissioner, who heads the North Dakota Insurance Department in Bismarck. Not a governor's appointee, and not a "director." NDCC 26.1-01-01: "commissioner" throughout Title 26.1 means the insurance commissioner. The Department's scope now also encompasses securities regulation: the agency signs itself the North Dakota Insurance & Securities Department, and its published divisions are Insurance, Securities, and the State Fire Marshal, with consumer, producer-licensing, and company-licensing functions under them; the current Commissioner is Jon Godfread (insurance.nd.gov site footer and main navigation; N.D. Insurance Department Bulletin 2025-1, 31 July 2025; checked 2026-09-05).

Duties (NDCC 26.1-01-03). See that all insurance laws are faithfully executed; report violations to the attorney general; file insurers' articles of incorporation; keep a permanent record of each company or agency examined; report biennially to the governor; share information with other states' commissioners; and manage, control, and supervise the state fire marshal — in North Dakota the fire marshal reports to the Insurance Commissioner. Rulemaking, hearings, and appeals run through NDCC ch. 28-32.

Examinations. The Commissioner conducts financial examinations of insurers, billed to the insurer (26.1-01-07), and market conduct examinations testing how consumers were actually treated — claims, advertising, replacement, complaints. On a suspected violation of the licensing chapter, 26.1-26-48 lets the Commissioner examine all books and records of the insurer or producer, inside or outside the state, and examine officers, managers, and producers under oath.

Enforcement. Cease and desist (26.1-01-03.1) is available when it appears a person is engaged in an act that violates or may lead to a violation of Title 26.1: an aggrieved party has 30 days from the date of the order to request a hearing in writing, the hearing is held not later than 10 days after the application is received, and the Commissioner issues the final order within 30 days after the hearing; no written request means the order becomes permanent (N.D.C.C. §26.1-01-03.1; checked 2026-09-05). The Commissioner may sue to enjoin prohibited acts in the district court of Burleigh County (26.1-01-03.2). After hearing, 26.1-01-03.3 authorizes an administrative monetary fine of up to $10,000 for each violation plus or instead of restitution of direct financial loss (N.D.C.C. §26.1-01-03.3; checked 2026-09-05) — but the Commissioner may not adjudicate whether a claim is owed under a policy. A parallel civil fine sits in 26.1-26-50.

2. Producer licensing

License required — with felony teeth. NDCC 26.1-26-03: no person may act as or hold out to be a producer, consultant, or surplus lines producer without a license, and no person may sell, solicit, or negotiate insurance for any class without being licensed for that line of authority. Willful violation is a class C felony.

Whom you represent. A producer who sells, solicits, or negotiates an application represents the insurer in a controversy between insured and insurer (26.1-26-06); a producer not appointed by the insurer where business is placed represents the insured (26.1-26-07).

Prelicensing education: not required. NDCC 26.1-26-15.1 was repealed in 2001. North Dakota mandates no prelicensing course for a resident Life and Health license — which makes a disciplined self-study plan more important, not less.

Examination (26.1-26-13.2, -27). A resident applicant must pass a written exam unless exempt under 26.1-26-25; it must test the lines applied for, the duties of a producer, and the insurance laws and rules of this state. The vendor is PSI. Both Life and Annuity and Accident and Health are 110 scored items, 150 minutes, $64, and the passing standard is 70 percent — 77 correct answers (5 to 10 unscored experimental items may be added). Retakes are unlimited, and a passing score is valid for one year (PSI North Dakota Insurance Licensing Examination Candidate Information Bulletin, 12/27/2024, pp. 2 and 10; checked 2026-09-05). On the Life and Annuity exam 40 of the 110 items are North Dakota material — 12 on Insurance Regulation and 28 on North Dakota life and annuity law; on Accident and Health it is 40 as well, 10 plus 30 (PSI North Dakota content outlines LifeAnn.pdf and acchea.pdf; checked 2026-09-05).

Application (26.1-26-13.3). The uniform application, filed through NIPR under penalty of refusal, suspension, or revocation. The Commissioner must find the applicant is at least 18, has committed no ground for denial under 26.1-26-42, has paid the fees set in 26.1-01-07 — $100 for issuing an insurance producer's license (N.D.C.C. §26.1-01-07(1)(l); N.D. Insurance Department, "Resident Producer" FAQ; checked 2026-09-05), and has passed the exams for the lines applied for. A fingerprint-based statewide and nationwide criminal history record check is required at the applicant's expense: 26.1-26-13.3(2) routes resident applicants to N.D.C.C. §12-60-24, which takes two sets of fingerprints and sends them through the Bureau of Criminal Investigation to the FBI (N.D.C.C. §§26.1-26-13.3(2)–(3), 12-60-24(1); N.D. Insurance Department, "Resident Producer" FAQ; checked 2026-09-05) — but not for biennial continuation, and not for a person applying within 12 months after cancellation or expiration of a valid resident license unless it was suspended or revoked. Convictions must be disclosed, and 26.1-26-15 lets the Commissioner deny anyone not competent, trustworthy, financially responsible, and of good reputation. No response within 20 days about an incomplete application may deem it withdrawn, fees not refundable. Business entities need their own license and a designated principal producer, and business may first be transacted the date the Department approves the application (NDAC 45-02-02-05).

Appointment (26.1-26-13.1). A producer may not act as an insurer's agent unless appointed. The insurer files notice of appointment within 30 days from the later of contract execution or submission of the first application, and pays an appointment fee and a renewal appointment fee of $25 each (N.D.C.C. §§26.1-26-13.1(2)–(4), 26.1-01-07(1)(n); checked 2026-09-05). Timing trap: appointments — and the licenses of surplus lines producers and consultants — terminate on failure to pay annual renewal fees before May 1 (26.1-26-32).

Term and continuation. North Dakota licenses have no fixed expiration date: under 26.1-26-31 a license continues in perpetuity unless it is suspended, revoked, or refused; the licensee consents, dies, or ceases to exist; residency fails (26.1-26-19 — reside here or maintain a principal place of business here); the individual fails CE; or the individual fails to file the biennial continuation and fee. Biennial continuation keeps it alive: 26.1-26-13.4 requires the filing and fee with not less than 60 days' notice of the deadline, and NDAC 45-02-02-05.1 sets the date at the last day of the licensee's birth month following the two-year anniversary of issuance, then every two years, fee $25, with CE compliance on file first (N.D.A.C. §45-02-02-05.1; N.D.C.C. §26.1-01-07(1)(s); checked 2026-09-05). Failure to continue and pay = license canceled.

Nonresident licensing (26.1-26-20). No North Dakota exam if the person is licensed and in good standing at home, has paid the fees, has transmitted the home-state or uniform application, and the home state licenses North Dakota residents on the same basis. A producer changing legal residence files a change of address plus home-state certification within 30 days — no fee, no new application — and home-state CE satisfies North Dakota's, reciprocally (26.1-26-47.1). A nonresident license may be suspended or revoked without notice and hearing when the home-state license is suspended or revoked, or 60 days after the Commissioner receives notification that the producer's licence is past the renewal deadline in the home state (N.D.C.C. §26.1-26-42.1; checked 2026-09-05).

Temporary license (26.1-26-26). No exam, not to exceed 180 days (N.D.C.C. §26.1-26-26; checked 2026-09-05), only to service an existing business: on a producer's death or disability (to the spouse, next of kin, executor, employee, or legal guardian), on the death or disability of an entity's principal producer, to the designee of a producer entering active military service, or where the public interest is best served.

Grounds for denial, suspension, revocation, or probation (26.1-26-42), after notice and hearing: a materially untrue application statement or a license obtained by fraud; cheating on the exam; a felony conviction, or an offense the Commissioner finds directly bears on serving the public; fraudulent, coercive, or dishonest practices, or being incompetent, untrustworthy, or financially irresponsible; misrepresenting contract terms; knowingly selling unnecessary or excessive coverage; forgery on an application; converting money of policyholders, insurers, or beneficiaries; any unfair trade practice in Title 26.1, or fraud; violating any insurance law or lawful order, or discipline in another jurisdiction; failing to respond within 20 days to the Commissioner's inquiry; contacting a complainant without prior written approval to get a complaint dismissed; accepting business from an unlicensed person; ignoring a child support order; and failing to pay state taxes.

Rules add teeth: NDAC 45-02-02-14.1 bars soliciting or accepting a loan from a client or business contact of the past ten years (excepting financial institutions, immediate family, and pre-approved loans), and 45-02-02-14 presumes excessive coverage where a producer knowingly sells a Medicare supplement policy with both A and B coverage to someone who already holds one, absent a written, understood replacement.

Other duties. Report administrative action in another jurisdiction within 30 days of final disposition and any criminal conviction within 30 days (26.1-26-45.1); report address, email, and legal-name changes within 30 days (26.1-26-33). An agency is answerable where a partner, officer, or manager knew of a violation and neither reported nor corrected it (26.1-26-43). Variable life and annuity applicants must first be licensed as securities salesmen (NDAC 45-02-02-11).

3. Marketing and sales conduct: the Prohibited Practices Act

North Dakota has a full unfair trade practices statute for insurance — NDCC ch. 26.1-04. Section 26.1-04-02 forbids any practice the chapter defines as an unfair method of competition or unfair or deceptive act; 26.1-04-03 defines them. Structural point the exam likes: North Dakota has no separate unfair claims act — unfair claim settlement practices are enumerated inside 26.1-04-03.

• Misrepresentation and false advertising of policy contracts — any illustration, statement, sales presentation, omission, or comparison misrepresenting policy terms, benefits, dividends, or surplus; misstating a person's financial condition; a policy name misrepresenting its true nature; and any misrepresentation tending to induce the lapse, forfeiture, exchange, conversion, or surrender of any policy — North Dakota's twisting prohibition. Churning falls under the same language and under 26.1-26-42(8).
• False information and advertising generally — untrue, deceptive, or misleading statements about the insurance business in any medium.
• Defamation — false or maliciously critical statements about a person's financial condition, calculated to injure someone in the insurance business.
• Boycott, coercion, and intimidation — concerted action restraining or monopolizing the business of insurance. Separately, 26.1-04-04 prohibits coercing a purchaser or borrower to insure with a particular company or producer.
• False financial statements and false entries to deceive an examiner or official; stock operations and advisory board contracts promising returns as an inducement to insurance.
• Unfair discrimination — between individuals of the same class and equal expectation of life in life or annuity rates, dividends, or benefits; between individuals of the same class and hazard in accident and health premiums or benefits, expressly including discrimination based on history or status as a subject of domestic abuse; and refusing or rate-differentiating solely because of blindness. NDCC 26.1-04-05.1 separately bars visual acuity as a factor.
• Unfair claim settlement practices — misrepresenting facts or policy provisions to claimants; failing to acknowledge and act promptly on claim communications; failing to adopt reasonable standards for prompt investigation; failing to attempt in good faith a prompt, fair settlement where liability is reasonably clear; compelling insureds to litigate by offering substantially less than amounts ultimately recovered; and appealing arbitration awards as a policy to force lower settlements. Most carry a frequency element — such frequency as to indicate a general business practice — so one late letter is not a violation, a pattern is.

Rebating (26.1-04-03(8), 26.1-04-05). No contract on terms other than plainly expressed in it, and no giving or offering — directly or indirectly, as an inducement to the insurance or annuity — any rebate of premium, special favor in dividends or benefits, securities, or "any valuable consideration or inducement whatsoever not specified in the contract." NDCC 26.1-04-06 makes it unlawful for the insured or applicant to knowingly accept a rebate — in North Dakota both sides violate the law.

The permitted-marketing safe harbor. A producer may give a gift, prize, promotional article, meal, or entertainment activity to market the business if the aggregate retail value does not exceed $100 per person per year (N.D.C.C. §26.1-04-03(8)(c); checked 2026-09-05). "Person" means the named insured, policy owner, or prospective client, or that person's spouse — not a certificate holder, child, or employee. Gift cards for specific merchandise or services are allowed; cash, cash cards, currency, and any premium refund or discount are never allowed at any amount, and the gift may not be conditioned on getting a quote or contract. Raffles are permitted if entry is free, prizes are reasonable, and the drawing is public and not contingent on purchase. Donations to a 501(c)(3) may be any amount if not an inducement. North Dakota also codifies the NAIC value-added products and services exception.

Procedure. The chapter supplies hearings, cease and desist orders, judicial review, and penalties: for a willful unfair-practice violation, up to $1,000 per act, capped at $10,000 in the aggregate, rising to up to $5,000 per act, capped at $50,000 in any six-month period, where the person knew or reasonably should have known of the violation (26.1-04-13(1)(a)); and for violating a final cease and desist order while it is in effect, a court-imposed forfeiture of up to $10,000 for each act or violation (26.1-04-14) (N.D.C.C. §§26.1-04-13, 26.1-04-14; checked 2026-09-05), and referral of certain violations to the state's attorney; it is additional to existing law, so one act can draw both a fine and license discipline.

Advertising rules. NDAC 45-04-10 (life advertising), 45-06-04 (accident and health advertising), 45-04-01.1 (life illustrations), 45-04-14 (military sales practices). Under NDAC 45-04-01-04 the insurer must provide a Buyer's Guide and Policy Summary before accepting the initial premium, unless the policy or the policy summary carries an unconditional refund provision of at least 10 days, in which case both must be delivered with or before the policy (N.D.A.C. §45-04-01-04(1); checked 2026-09-05).

Commissions and fees. NDCC 26.1-26-04: no paying and no accepting commissions for selling, soliciting, or negotiating where the person must be licensed and is not; renewal or deferred compensation may be paid to someone licensed at the time of the sale. NDCC 26.1-26-04.1 allows a service fee, but not on personal lines accounts, including personal life and health, and requires a Commissioner-approved written disclosure signed by both parties, retained not less than 5 years after completion of the service (N.D.C.C. §26.1-26-04.1(1)(c)–(d); checked 2026-09-05), with no refund of the fee as an inducement. Controlled business is prohibited: the Commissioner may not grant, renew, or continue a licence deemed to be used for writing it, and it is deemed so used if in any twelve-month period commissions from controlled business exceeded 35 percent of the licensee's total commissions (N.D.C.C. §26.1-26-53; checked 2026-09-05). Trap: the old controlled-business section, 26.1-26-38, was repealed in 2001 — the live section is 26.1-26-53.