North Dakota Personal Lines Insurance License Exam — All Questions

Which agency issues resident personal lines insurance producer licenses in North Dakota?

• a.North Dakota Insurance Department✓
• b.The North Dakota Bureau of Insurance Agents
• c.The National Association of Insurance Commissioners
• d.The federal Department of Insurance

Insurance in North Dakota is regulated at the state level by the North Dakota Insurance Department, which licenses and renews producers, reviews rates and forms, and enforces the state insurance code. The NAIC is a standards body, not a licensing agency, and there is no federal insurance department. Source: North Dakota Insurance Department (https://www.insurance.nd.gov).

After a producer is licensed in North Dakota, what generally must occur before he or she can transact business for a specific insurer?

• a.Nothing further — the license alone authorizes sales for any insurer
• b.The insurer must appoint the producer, with the appointment on file with the North Dakota Insurance Department✓
• c.The producer must post a personal surety bond with the state treasurer
• d.The producer must first sell to five clients on a temporary permit

A license lets a person act as a producer, but to represent a particular company that insurer must appoint the producer, with the appointment filed with the North Dakota Insurance Department. A producer may hold appointments from several insurers at once. This follows the NAIC producer-licensing model North Dakota uses.

Which statement about continuing education (CE) for resident personal lines producers in North Dakota is correct?

• a.Resident producers must complete state-approved CE, including ethics, each renewal cycle to keep the license active; confirm exact hours with the North Dakota Insurance Department✓
• b.CE is optional and only recommended for new producers
• c.CE is required once, in the first year, and never again
• d.Passing the licensing exam permanently exempts a producer from all CE

Like other states, North Dakota requires resident producers to complete approved continuing education each renewal cycle, typically including an ethics component, before renewing. Because specific hour totals change, verify the current CE requirement directly with the North Dakota Insurance Department (https://www.insurance.nd.gov).