Get Licensed: Become An Auto Insurance Agent In New Jersey

If you're looking to become an auto insurance agent in New Jersey, you'll need to obtain a New Jersey insurance license. This process involves six steps: figuring out which insurance license you need, completing a pre-licensing education course, passing the relevant New Jersey insurance license exam, completing a fingerprint and background check, submitting your insurance license application, and waiting for your application review. The type of insurance policies you want to sell will dictate the type of license you need. For example, to sell auto insurance, you would need a Property & Casualty (P&C) license.

Complete a pre-licensing course

To become an auto insurance agent in New Jersey, you'll need to complete a pre-licensing course. This is a requirement for all individuals looking to sell insurance in the state.

The pre-licensing course you take must be offered by an approved insurance education provider and meet certain mandatory pre-licensing education classroom hours. The number of hours will depend on the type of insurance lines of authority you're applying for. For example, a Combined Life and Health license requires 40 hours, while a Personal Lines license requires 20 hours.

When choosing a pre-licensing course, consider the course's flexibility, price, and the provider's reputation.

Doing a pre-licensing course will increase your chances of passing your licensing exam on the first attempt, which can save you time and money.

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Pass the New Jersey Insurance License Exam

To pass the New Jersey Insurance License Exam, you must first complete a pre-licensing education course. This is a requirement for all individuals looking to sell insurance in the state of New Jersey. The course must be offered by an approved provider and meet certain mandatory pre-licensing education classroom hours. The number of required hours will depend on the type of insurance line of authority you are applying for. For instance, a Combined Life and Health license requires 40 hours, while a Personal Lines license requires 20 hours.

The next step is to register for the state licensing exam. This is administered by PSI Services, LLC, and you can register online at www.psiexams.com or by calling (800) 733-9267. The exam fee 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 photo, as well as your certificate of completion from your pre-licensing course.

The New Jersey Insurance License Exam is a multiple-choice exam, and you will need a score of at least 70% to pass. The number of questions and the time limit will depend on the type of license you are applying for. For example, the Life Insurance Examination includes 83 questions and has a time limit of 3.5 hours, while the Casualty Insurance Examination includes 91 questions and allows 3.5 hours.

You will be notified of your results immediately after completing the exam. If you pass, you will receive a notification and score report. If you fail, you will receive a diagnostic report indicating your strengths and weaknesses. Your score will be reported to the National Insurance Producer Registry (NIPR) and the Department of Insurance.

It is important to note that you must apply for your insurance license within 12 months of passing the exam to avoid having to retake it. Additionally, you will need to complete a fingerprinting and background check requirement as part of the licensing process.

Submit to fingerprinting and a background check

To become an auto insurance agent in New Jersey, you'll need to complete a fingerprinting and background check as part of the licensing process. Here's a detailed guide on what you need to do:

Under PL2003, Chapter 199 of New Jersey Law, all applicants for an insurance license must undergo fingerprinting and a background check. This process is done through Live Scan, an electronic fingerprinting service provided by IDEMIA. The total cost for this process is $66.05, which you must pay directly to IDEMIA at the time of scheduling.

Scheduling Your Fingerprinting Appointment:

To schedule your fingerprinting appointment, go to the IdentoGO website (https://uenroll.identogo.com/) or call their toll-free number at (877) 503-5981. Online scheduling is available 24/7, and it is recommended to book your appointment online to avoid telephone holding times. During the booking process, you will be prompted to input a Service Code, which is 2F16Y3 for insurance producers in New Jersey. This code is essential for identifying the purpose of the background check and ensuring your check is valid.

Appointment Requirements:

When scheduling your appointment, keep in mind that cancellations or rescheduling must be done by 5 pm EST on the business day before your appointment to avoid a cancellation fee of $12.80. Additionally, you must present proper identification at your appointment. Acceptable ID must include your photo, name, address (home/employer), and date of birth. It must be issued by a federal, state, county, or municipal entity for identification purposes, such as a valid photo driver's license or passport.

Background Check Process:

Your fingerprints will be used to check your criminal history records with the FBI. You have the right to review and challenge the accuracy of the information in the FBI identification record if needed. The results of the background check will be reviewed as part of your license application, and any misdemeanors or felonies may impact the outcome of your licensing efforts. If you have concerns about this, you can contact the New Jersey Department of Banking and Insurance for guidance.

Timing:

It is recommended that you schedule your fingerprinting appointment immediately after passing your licensing exam. The appointment will typically be scheduled within 7 to 10 days of completing the scheduling process.

Who Needs Fingerprinting:

Individuals applying for a New Jersey resident producer license or public adjuster license are required to undergo fingerprinting and the background check. This includes officers, directors, partners, or owners of a controlling interest in a corporation or partnership applying as a resident business entity applicant. Non-resident applicants are not required to undergo this process.

Submit your insurance license application

With your exams and fingerprinting out of the way, you'll be ready to apply for your New Jersey insurance license. Applications are submitted online through the National Insurance Producer Registry.

The cost of applying for a license depends on the type of license you are applying for. For major line licenses (e.g. Life, Accident, & Health or Sickness, Variable Life, and Variable Annuity), the application fee is $170. For limited lines licenses (e.g. Car Rental, Group Mortgage Cancellation, or Bail Bond), the fee is $95. There is also a small transaction fee of $5.60.

If you have passed the New Jersey producer licensing exam for multiple lines of authority, you will need to submit an application (and pay the respective license fee) for each of these.

If you want to add any lines to your license later, you will need to pay a $20 amendment fee plus the NIPR's filing fee for each subsequent application.

After submitting your application, the New Jersey Department of Banking and Insurance will review it. If everything on your application has been filled out correctly, your license should be issued within a month—this is the typical amount of time it takes for a license application and background check to be reviewed.

It's important to be aware that the issuance of your insurance license can take longer than this if there are any items from your background check that need to be looked over. However, the state will likely get in touch with you to give some context if they run into any issues.

Once the review is complete, the state will send you an email regarding the status of your license.

Plan to complete required insurance continuing education credits

To maintain your insurance license in New Jersey, you must complete 24 credit hours of continuing education every two years, with a minimum of three credit hours dedicated to approved ethics instruction. This deadline falls on the last day of your birth month every two years.

New Jersey does not allow excess credits to be carried forward into the next licensing period. However, resident producers who complete more than 24 hours in one licensing term can carry over up to 12 credits to the next renewal term. Credit hours can only be carried over once, and ethics hours may not be carried over.

Public adjusters must complete a minimum of 15 hours of continuing education each two-year license renewal period. Non-residents may be exempt if the commissioner deems that they have satisfactorily completed equivalent continuing education requirements in their home state.

Producers selling annuities, LTC, or flood insurance have special training requirements. For example, before selling any annuity products, producers must complete a one-time, four-hour annuity suitability training course. Similarly, to sell or solicit Long-Term Care Insurance, producers must first complete an eight-hour state-approved course in Long-Term Care Training and then a four-hour ongoing training requirement every two years.

Frequently asked questions