Life Insurance Exam: Is New Jersey's Tough?

The New Jersey Life Insurance Licensing Exam is a pivotal step in becoming a licensed life insurance agent in the state. The exam is administered by PSI Services, LLC, and consists of 83 scored questions that need to be completed within 210 minutes. The exam covers two sections: general and state-specific knowledge. The general section deals with basic life insurance product knowledge, while the state-specific section covers insurance concepts, terms, rules, regulations, and practices specific to New Jersey. To pass the exam, candidates need a score of 70% or higher. While the exam is not considered overly difficult, preparation is key to success. Candidates are advised to complete a pre-license course, which provides essential industry knowledge and helps them become familiar with the exam format.

Exam structure

The New Jersey Life Insurance Licensing Exam is administered by PSI, an independent testing service. The exam contains 83 scored multiple-choice questions, which are divided into two sections: general and state-specific knowledge. The general section covers basic life insurance product knowledge, while the state-specific section focuses on insurance concepts, terms, rules, regulations, and practices specific to New Jersey.

Candidates are given 210 minutes (3.5 hours) to complete the exam. The exam fee is $45, payable at the time of reservation by credit card, debit card, or voucher. It is a proctored test, meaning an official proctor will closely monitor candidates in a controlled environment.

The passing score for the New Jersey Life Insurance Licensing Exam is 70%. Candidates will receive their scores on-screen immediately after completing the exam. Additionally, the score will be emailed to them. In case of failure, candidates will receive a score report and a diagnostic report to help them identify areas for improvement.

There is no limit to the number of attempts a candidate can make. If a candidate fails the exam, they can retake it as soon as 24 hours after their first attempt.

Registration process

To register for the New Jersey Life and Health Insurance Exam, you must be at least 18 years old and be a resident of New Jersey. You must also complete prelicensing education, which is required for life and health insurance producers.

You can find a list of requirements and approved education providers by visiting the New Jersey Department of Banking and Insurance website. Once you have completed your prelicensing education, you can register for the exam. The exam is administered by the independent testing service, PSI Services, LLC.

Registration and examination information can be found in the New Jersey Candidate Information Bulletin, which should be reviewed thoroughly before registering for the exam. PSI recommends that candidates register via their website for the fastest and most convenient scheduling process. Telephone, fax, and mail registration are also available.

When registering, you must use the same personally identifiable information that appears on your government-issued ID to avoid delays in the licensing process.

After registering, you will need to schedule your exam. This can be done online or by phone. Your exam may be taken at a physical PSI examination centre or via a remote online proctored exam. Exam fees must be paid at the time of reservation.

On the day of your exam, you must bring two valid forms of government-issued identification, one of which must include your name and photograph. You will also need to bring your certificate of completion.

Additional Notes

• You will need to obtain a score of 70% or higher to pass the Life, Health, Property, or Casualty Producer exams in New Jersey.
• New Jersey law requires all individual applicants for an insurance license to submit fingerprints and written consent for a criminal history check.
• You can apply for your license up to 12 months after completing your exam.

Test day requirements

On the day of your New Jersey Life Insurance exam, you must bring two valid forms of government-issued ID, one of which must be photo ID, such as a driver's license or passport. You must also bring your certificate of completion from your pre-licensing course. You will not be able to take the exam without these documents.

The exam will be multiple-choice and taken on a computer. You will have 210 minutes to answer 83 questions, and you must achieve a score of 70% or higher to pass. The exam will cover two sections: general and state-specific knowledge. The general section deals with basic life insurance product knowledge, while the state-specific section covers insurance concepts and terms, rules, regulations, and practices specific to New Jersey.

At the end of the examination, your score will be displayed on the screen. It will also be emailed to you. If you pass, you will immediately receive a successful notification and a score report. If you fail, you will receive a diagnostic report indicating your strengths and weaknesses, which can be helpful if you need to retake the exam. You can also request a duplicate score report by contacting PSI and providing your name, candidate ID number, and confirmation number.

If you need to cancel your exam, you must contact PSI Exams at least two days in advance or you will forfeit your registration fee. You can retake the exam as soon as 24 hours after your first attempt, and there is no limit to the number of attempts you can make.

Passing score

The passing score for the New Jersey Life Insurance Exam is 70%. This is a standard passing score for insurance exams, with the Life, Health, Property, and Casualty Producer exams all requiring a score of 70% or higher.

The exam contains 83 scored questions, and you will have 210 minutes to complete it. This equates to roughly 2.5 minutes per question. The questions are multiple choice and are delivered via a computer.

The exam is split into two sections: general and state-specific knowledge. The general section covers basic life insurance product knowledge, while the state-specific section covers insurance concepts, terms, rules, regulations, and practices specific to New Jersey.

If you fail the exam, you will receive a score report that will also contain a diagnostic report. This will help you to determine your strengths and weaknesses and allow you to focus your studies if you decide to retake the exam. There is no limit to the number of times you can retake the exam, and you only need to wait 24 hours between attempts.

The overall pass rate for all insurance exams is 60%. To be part of this majority, it is recommended to take a study course and prepare. Kaplan's online courses are a popular choice, with an 81% usage rate among readers and a 93% pass rate.

Post-exam steps

Once you've taken the New Jersey Life Insurance Licensing Exam, there are a few more steps to becoming a fully licensed life insurance agent in the state. Here's what you need to do:

• Get a fingerprint-based background check: After taking the exam, schedule an appointment for a fingerprint-based background check with IdentoGO. This will cost $66.05, and you'll need to bring the receipt to attach to your license application.
• Complete a New Jersey Life Insurance License Application: The application fee is $170 plus a $5.60 transaction fee, and you must apply online via the National Insurance Producer Registry (NIPR). You will need to submit your completed license application within 12 months of passing the exam.
• Wait for your application results: The New Jersey Department of Banking & Insurance will review your application and background check. This process usually takes one to five business days, and they will email you with their decision or ask for more information.
• Maintain your license: To maintain your license in good standing, you must complete 24 hours of continuing education (CE) every two years. Three of those hours must focus on ethics/consumer protection. The renewal fee is $150, and there is a $250 late fee if you don't renew on time.

Additional steps for selling advanced life insurance products

If you plan on selling advanced life insurance products, there are a few more steps you'll need to take:

• Obtain relevant securities licenses: You'll likely need to pass the Securities Industry Essentials (SIE) exam and obtain additional securities licenses (such as Series 6, 7, and 63).
• Choose your means of selling: Decide whether you want to work as a captive agent for a single company or run your own business as an independent agent.
• Develop your marketing approach: Adopt a marketing strategy that suits you, such as finding a niche market or organizing client appointments at the start of the week.

Frequently asked questions