Life In New Jersey: Examining Insurance Exam Challenges

The New Jersey Life and Health Insurance Exam is a pivotal step towards becoming a licensed insurance agent in the state. The exam is administered by PSI Services LLC, and consists of 83 multiple-choice questions, with a time limit of 3.5 hours and a passing score of 70%. The exam covers a range of topics, including types of policies, policy provisions, underwriting procedures, taxes, retirement plans, and New Jersey-specific insurance laws and regulations. While the exam is not considered extremely difficult, it requires a thorough understanding of the material and dedicated preparation time. Candidates are advised to complete a pre-license course, such as those offered by Kaplan, which have a high pass rate. Obtaining a life and health insurance license in New Jersey can lead to profitable career opportunities, but it is important to be aware of the challenges and responsibilities associated with the role, including sales pressure and the need for continuous learning to maintain one's license.

Pre-licensing education

The pre-licensing education curriculum covers various topics, including types of policies, policy provisions, completing the application, underwriting, delivering the policy, taxes, retirement, and insurance concepts. The course also covers New Jersey-specific laws, rules, and regulations related to insurance.

The pre-licensing education can be completed through online or instructor-led courses, webinars, or self-study materials. These courses are designed to provide a thorough understanding of the insurance industry and the specific regulations in New Jersey.

It is recommended to allocate sufficient time, typically around 40 hours or more, for studying and preparing for the licensing exam. This includes reading textbooks or study materials and taking practice exams to gain familiarity with the exam format and types of questions.

One popular provider of pre-licensing education is Kaplan, which offers online courses with a 93% pass rate. Their courses include features such as online exam simulations, live online training, printable study guides, and end-of-chapter reviews.

Exam format

The New Jersey Life and Health Insurance Exam is administered by PSI Services LLC, an independent testing service. The exam is multiple-choice and taken on a computer. It is proctored, meaning an official will closely monitor you in a controlled environment. The exam is three and a half hours long and consists of 83 questions for the Life Producer exam and 88 questions for the Accident and Health Examination. The passing score for both is 70%.

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 and terms, rules, regulations, and practices specific to New Jersey.

Life Producer Examination

• Types of Policies (e.g. Traditional Whole Life Products, Interest-Sensitive Life Products, Combination Plans)
• Policy Riders, Provisions, Options, and Exclusions
• Completing the Application, Underwriting, and Delivering the Policy
• Taxes, Retirement, and Other Insurance Concepts (e.g. Third-Party Ownership, Social Security Benefits and Taxes, Tax Treatment of Insurance Premiums)
• New Jersey Laws, Rules, and Regulations Common to Life, Accident and Health, Property, and Casualty Insurance
• New Jersey Laws, Rules, and Regulations Pertinent to Life and Regulations (e.g. Marketing Methods and Practices, The Insurance Contract)

Accident and Health Examination

• Types of Policies (e.g. Accidental Death and Dismemberment, Medical Expense Insurance, Medicare Supplement Policies)
• Policy Provisions, Clauses, and Riders (e.g. Mandatory Provisions, Rights of Renewability)
• Social Insurance (e.g. Social Security Benefits)
• Other Insurance Concepts (e.g. Total, Partial, and Residual Disability, Dependent Children Benefits)
• Field Underwriting Procedures (e.g. Completing application, Explaining sources of insurability information)
• New Jersey Laws, Rules, and Regulations Common to Life, Accident and Health, Property, and Casualty Insurance
• New Jersey Laws, Rules, and Regulations Pertinent to Accident and Health Insurance Only (e.g. Marketing Methods and Practices, Medicare supplement plans, The Health Care Claims Authorization Processing and Payment Act)

Registration

To register for the New Jersey Life, Accident, and Health Insurance Producer Exam, you must complete and submit an application form to the Department of Banking and Insurance. The application form can be downloaded from the department's website or obtained in person at their offices.

Along with the completed application form, you will need to submit the following documents:

• Proof of identity: This can include a valid driver's license, passport, or other government-issued ID.
• Proof of residency: You must provide proof of your New Jersey residency, such as a utility bill or lease agreement with your name and address.
• Fingerprint cards: The state of New Jersey requires fingerprint-based criminal background checks for all insurance producer applicants. You will need to submit two completed fingerprint cards, which can be obtained from the Department of Banking and Insurance or your local police department.
• Application fee: There is a non-refundable application fee, which must be paid at the time of submission. The fee can be paid by check or money order made payable to the "State of New Jersey."

Once your application is received, the Department of Banking and Insurance will review it and conduct a background check. This process can take several weeks, so it is important to plan ahead and submit your application in a timely manner.

If your application is approved, you will receive a notice of eligibility and instructions for scheduling your exam. The exam is administered by a third-party testing provider, and you will need to register with them to select your exam date and location. The exam fee is typically paid directly to the testing provider at the time of registration.

It is important to ensure that you meet all the requirements and provide the necessary documentation to be eligible to take the exam. Incomplete applications or those missing required documents may be rejected or delayed, so carefully review the application instructions and checklist before submitting your registration.

Background checks

To become a licensed life and health insurance agent in New Jersey, you must pass a fingerprint-based background check. This is a mandatory step in the process and must be completed after taking the New Jersey life insurance exam. The background check is carried out by IdentoGO, and the fee for fingerprinting services is $66.05 to cover the cost of comparing your prints against criminal history records.

To set up a fingerprinting appointment, you can visit the IdentoGO website or call 877-503-5981. You will need to use the service code 2F16Y3 when making your appointment. At the appointment, you will receive a receipt, which must be kept and attached to the license application sent to the New Jersey Department of Banking & Insurance.

It is important to note that you must submit your license application within one year of passing the licensing exam. If you fail to do so, you will need to retake the exam.

Application process

To apply for the New Jersey Life and Health Insurance Exam, you must be at least 18 years old, be a resident of New Jersey, and complete prelicensing education. You must also complete a fingerprinting requirement and register, pay fees, and pass the examination before applying for the license.

The application process for the New Jersey Life and Health Insurance Exam involves several steps, including:

• Complete Prelicensing Education: New Jersey requires candidates to complete a prelicensing course before taking the state licensing exam. The prelicensing course will provide you with the necessary knowledge and tools to prepare for the exam. In New Jersey, you must take a 24-hour pre-license course on life insurance, including three hours of ethics coursework. You can find a list of approved education providers on the New Jersey Department of Banking and Insurance website.
• Register for the Exam: The New Jersey Life and Health Insurance Exam is administered by PSI Services, LLC. You can register for the exam on the PSI website or by calling their telephone number. The exam fee is $45, which must be paid at the time of reservation.
• Take the Exam: The New Jersey Life Insurance Exam contains 83 scored questions covering 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. You will have 210 minutes to complete the exam.
• Get a Fingerprint-Based Background Check: After taking the exam, you must obtain a fingerprint-based background check from IdentoGO. The fee for this service is $66.05. Schedule an appointment on the IdentoGO website or by calling their phone number.
• Complete the License Application: Once you have passed the exam and completed the background check, you can apply for your New Jersey life insurance license. The application fee is $170, plus a $5.60 transaction fee. You must apply online via the National Insurance Producer Registry (NIPR).
• Wait for Application Results: After submitting your application, the New Jersey Department of Banking & Insurance will review it, which typically takes one to five business days. They will then notify you of their decision or request additional information. You can print your license from the NIPR website once it is approved.

Frequently asked questions