Becoming A Life Insurance Agent In New Jersey

If you're looking to become a life insurance agent in New Jersey, there are a few steps you need to take. Firstly, you'll need to obtain a New Jersey life insurance license by completing a pre-licensing course, passing the licensing exam, getting a fingerprint-based background check, and submitting your license application. You'll also need to be at least 18 years old and pass a background check. The entire process can take a few weeks, so it's important to plan accordingly. Once you have your license, you can start selling life insurance policies and annuities in the state of New Jersey.

Complete a pre-licensing course

To become a life insurance agent in New Jersey, you must complete a pre-licensing course. This is the first step in the process of obtaining your license.

The pre-licensing course will equip you with the knowledge and tools to prepare for and pass your licensing exam. In New Jersey, you must take a 24-hour pre-license course on life insurance, with three of those hours focusing on ethics coursework.

You can choose to complete your pre-licensing course in a classroom or online. Online courses offer flexibility and convenience, while classroom courses provide a more traditional learning environment. The cost of pre-licensing courses varies, but it is important to remember that you tend to get what you pay for.

It is recommended to choose a course based on its flexibility, price, and the reputation of the provider. Reviews and pass rates can be helpful indicators of a course's quality and effectiveness.

Once you have completed your pre-licensing course, you will need to pass a Certification Exam monitored by a disinterested third party. This exam must be passed with a score of 70% or higher, and you will receive a Certificate of Completion that does not expire.

Keep in mind that the pre-license course certificate is only valid for 12 months, so it is important to complete your licensing exam within that timeframe.

Pass the New Jersey Life Insurance Licensing Exam

To pass the New Jersey Life Insurance Licensing Exam, you must score a minimum of 70%. The exam will cost $45 (or $47, according to another source) and consists of 83 multiple-choice questions, which you will have 210 minutes to answer. 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.

You can take the exam at a PSI testing site or remotely. Remote exams require a computer or laptop that is compatible with the PSI Bridge remote testing platform. If you do not have a compatible computer, you must schedule an in-person exam. You can schedule your exam through PSI, and it is recommended that you do so at least two days in advance.

To prepare for the exam, you can take a pre-licensing course. These courses are self-paced and include study materials such as practice exams and flashcards. In New Jersey, you must take a 24-hour pre-license course on life insurance, with three of those hours focusing on ethics coursework. After completing the course, you will need to present a valid photo ID and an original certificate of completion from the approved pre-licensing education provider when you arrive to take your licensing exam.

If you fail the exam, you can retake it as soon as 24 hours later, and there is no limit to the number of attempts you can make.

Get a fingerprint-based background check

To become a life insurance agent in New Jersey, you must complete a fingerprint-based background check. This is a mandatory step in the process and can be done before taking the licensing exam to prevent any delays in obtaining your license.

The State of New Jersey requires fingerprint impressions from all unlicensed applicants. The background check can be completed through IdentoGO, an approved fingerprint capturing site. The fee for this service is $66.05, which covers the cost of comparing your fingerprints against criminal history records.

To set up a fingerprinting appointment, you can visit the IdentoGO website or call 877-503-5981. Use the service code 2F16Y3 when making your appointment. It is important to note that you will need to bring proper identification with the home address the appointment was scheduled with, as outlined on the IdentoGO website.

At your fingerprinting appointment, you will receive a receipt, which should be kept for your records. A copy of this receipt should also be attached to the license application that you will submit to the New Jersey Department of Banking & Insurance.

After completing your fingerprint-based background check, you must submit your license application within one year of passing the licensing exam. If you do not submit your application within this timeframe, you will need to retake the exam.

Apply for a New Jersey Life Insurance License

The New Jersey Department of Banking and Insurance requires you to complete a five-step process to become a life insurance agent in New Jersey. Here's a detailed breakdown of each step:

Step 1: Complete a New Jersey Insurance Pre-license Course

Before taking the New Jersey life insurance licensing exam, it's advisable to enrol in a pre-license course to prepare for the exam adequately. In New Jersey, you must take a 24-hour pre-license course on life insurance, with three of those hours focusing on ethics. After completing the course, you'll need to present a valid photo ID and an original certificate of completion from the approved prelicensing education provider.

Step 2: Take the New Jersey Life Insurance Licensing Exam

The New Jersey life insurance exam is administered by PSI, the official testing service, and costs $45. The exam consists of 83 multiple-choice questions, covering general and state-specific knowledge. You'll have 210 minutes to complete it. If you fail, you can retake the exam as soon as 24 hours later, with no limit on the number of attempts.

Step 3: Get a Fingerprint-Based Background Check

After the exam, you must get a fingerprint-based background check from IdentoGO, which costs $66.05. This check is required by the state of New Jersey for all unlicensed applicants. You can schedule an appointment online or by calling their service line.

Step 4: Complete a New Jersey Life Insurance License Application

Once you've 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, and you must apply online via the National Insurance Producer Registry (NIPR). The New Jersey Department of Banking and Insurance will issue a life insurance license to individuals aged 18 or over who have passed the licensing exam.

Step 5: Await Your Application Results

After submitting your application, the New Jersey Department of Banking and Insurance will review it, usually within one to five business days. They will then email you with their decision or request further information. If your application is approved, you can print your license from the NIPR website at no charge.

Additional Considerations:

• Securities Licenses: If you plan to sell advanced life insurance products, you may need to pass the Securities Industry Essentials (SIE) exam and obtain relevant securities licenses.
• Means of Selling: Decide whether you want to work as a captive agent for a company or run your own business as an independent agent.
• Marketing Approach: Develop a marketing strategy that suits your style and attracts clients.
• License Renewal: To keep your license valid, you must complete 24 hours of continuing education every two years, with at least three hours dedicated to ethics/consumer protection.

Plan for continuing education

To maintain your life insurance license in New Jersey, you must complete 24 hours of continuing education (CE) every two years to renew your license. Three of those hours must focus on ethics/consumer protection.

If you have a non-resident license and are in good standing in your home state, you are exempt from this requirement.

To avoid delays in renewing your license, complete the required CE hours at least 30 days before your license expires. This will give your CE provider enough time to report your successful completion to the New Jersey Department of Banking & Insurance.

A $150 renewal fee will need to be paid (the late fee is $250).

You can find more information on the New Jersey DOBI website.

Frequently asked questions