State RegulationsNC specificDifficulty 3/5
A nonresident producer licensed in North Carolina allows his home-state license to lapse. What is the consequence under North Carolina law?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under G.S. 58-33-30(h)(2), a nonresident must hold a like license in the home state, and if that license lapses, the North Carolina license automatically lapses 30 days later. It can be reinstated within 30 days of the lapse upon proof of home-state reinstatement, so the producer has a short grace window but not an indefinite right to keep selling.
Why the other options are wrong
- A is wrong because the North Carolina license does not terminate immediately; it lapses automatically 30 days after the home-state loss.
- C is wrong because the 60-day window applies to a producer who relocates and must file a new home-state license and address change, not to a home-state lapse.
- D is wrong because continuing education compliance does not substitute for holding a like license in the home state.
Memory hook
Home state lapses - NC follows suit in 30 days, reinstate in 30 more.