10 exam-style questions with answers and explanations, straight from our 1,030-question bank. Tap an answer to check yourself. When you're ready, take the scored version in the free practice test.
The NCPL exam has 60 questions and runs 1 hour 15 minutes.
These 10 free NCPL questions are organized by exam domain, so you can see how each part of the North Carolina Property & Liability Insurance Exam blueprint is tested. Reveal the answer and explanation under each question.
A restaurant keeps oily cleaning rags beside a furnace. A fire starts in the rags, damages the building, and forces the restaurant to close during repairs. Identify the only accurate classification.
Correct answer: B - The rags are a physical hazard, the fire is the peril, and the lost income is an indirect loss
An owner-occupant wants open-peril protection on the dwelling, other structures, and personal property. Select the homeowners form that fulfills all three requirements.
Correct answer: D - HO-5 Comprehensive Form
After intense surface runoff, water covers only 0.7 acre but enters the insured dwelling and two neighboring homes. No sewer backup is involved. Under the NFIP definition, the event:
Correct answer: A - Can qualify as flood because at least two properties are affected and one is insured
During a dry week, a municipal sewer backs through a basement drain and damages finished walls. The HO-3 has no water-backup endorsement, and no surface water or general flooding occurred. The sound coverage conclusion is:
Correct answer: C - The base HO water exclusion applies; HO-04-84 would add limited backup coverage
A landlord insures a tenant-occupied one-family dwelling. The requested form should cover the dwelling and detached structures on an open-peril basis, keep personal property on broad named perils, and leave theft and personal liability to separate additions. The appropriate form is:
Correct answer: B - DP-3 Special
A kitchen fire is covered by a Standard Fire Policy. After firefighters declare the dwelling safe to enter, a roof opening leaves the interior exposed to rain forecast that evening. The insured should:
Correct answer: D - Arrange reasonable temporary protection, keep the expense records, and notify the insurer promptly
A covered fire damages a building one-half mile from an insured store. Because the damaged building creates a dangerous condition, civil authorities prohibit access to the store for 10 days, although the store itself is undamaged. The standard Business Income civil-authority provision responds:
Correct answer: C - After 72 hours, for up to 4 weeks
A commercial building is worth $1,000,000 at the time of loss. The policy carries a $600,000 limit, an 80% coinsurance clause, and a $5,000 deductible. A covered loss totals $200,000. Calculate the insurer's payment.
Correct answer: A - $145,000
On August 10, 2026, a 19-year-old North Carolina resident applies for the Property line and has completed no prelicensing course. All other application requirements are met. Current North Carolina law allows the applicant to:
Correct answer: A - Proceed once authorized; producer prelicensing coursework is no longer required
An otherwise eligible homeowner in a designated North Carolina coastal area cannot obtain essential wind/property coverage in the voluntary market. The proper residual-market destination is:
Correct answer: B - Coastal Property Insurance Pool
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