North Carolina Property & Casualty Course Notes

Property insurance questions reward classification first: identify the property, peril/cause of loss, coverage form, valuation method, and any endorsement or exclusion before calculating payment. Know DP-1 as Basic named-peril, DP-2 as broader named-peril, and DP-3 as open-peril on the dwelling/other structures with named-peril personal property. For homeowners, memorize A-D as Section I property and E-F as Section II liability. Standard homeowners policies exclude flood and earthquake, while NFIP flood policies generally have a 30-day waiting period. In commercial property, distinguish Building, Business Personal Property, and Property of Others; Basic/Broad are named-peril forms while Special is open-peril subject to exclusions. Coinsurance uses carried ÷ required × loss, not an invented percentage subtraction formula.

• Reversing DP-1 and DP-2; both are named-peril forms, with DP-2 broader.

• Property first, then cause of loss, then form, then exclusion/endorsement, then valuation/limit.

Casualty questions are driven by who was injured, whose property was damaged, what vehicle or operation was involved, and which liability trigger applies. North Carolina is a contributory-negligence state—do not use a 50/51 comparative-fault formula. Current NC auto minimum liability limits for 2026 policies subject to the July 1, 2025 changes are 50/100/50. On CGL, Coverage A is BI/PD, B is personal and advertising injury, and C is no-fault medical payments. Occurrence and claims-made forms use different timing triggers. Business Auto requires correct covered-auto symbols, especially 8 for hired and 9 for non-owned. Workers Compensation handles employee occupational injury; CGL handles third-party liability.

• Using modified/comparative negligence in North Carolina.

• Ask first: employee, customer, motorist, property owner, or insured?

State-law questions are number- and entity-heavy. For 2026, memorize producer appointment filing (15 days after first application), administrative-action reporting (30 days after final disposition), criminal-prosecution reporting (30 days after the initial pretrial hearing or similar proceeding), resident CE (generally 24 hours biennially plus mandatory topics as applicable), current auto minimums (50/100/50), general workers compensation threshold (3 employees), injured-worker notice (generally 30 days), and claim filing (generally 2 years). Distinguish the Rate Bureau (specified rates), DOI/Commissioner (regulator), Reinsurance Facility (auto residual market), FAIR Plan (property residual market), Coastal/NCIUA (Beach/coastal residual property), and Guaranty Association (insolvent member insurers).

• Confusing the Rate Bureau with the Department of Insurance.

• When a question names an entity, identify its job before considering the facts.