Get A New Jersey Life Insurance License: A Step-By-Step Guide

Getting a New Jersey life insurance license involves several steps, and it's important to be aware of the requirements and procedures to ensure a smooth process. Here's an introduction to the topic, outlining the key steps and considerations for obtaining a life insurance license in the state of New Jersey.

First, you need to decide on the type of insurance license you require. This is because the type of insurance policies you plan to sell dictates the specific license needed. For instance, if you want to offer auto, home, or business insurance, you'll need a Property & Casualty (P&C) license.

The next step is to complete a pre-licensing education course. This requirement applies to all individuals selling insurance in New Jersey, and the course must be offered by an approved insurance education provider. The number of mandatory pre-licensing education hours varies depending on the type of insurance lines you're applying for.

After completing the pre-licensing course, you must pass the relevant New Jersey insurance license exam. Passing the exam requires a grade of at least 70%. It's worth noting that you may be exempt from this step if you previously held a resident license for an equivalent line in another state.

The third step is to complete a fingerprinting and background check process. This is done through IdentoGO, and it initiates a background check to ensure compliance with New Jersey's insurance producer regulations.

Once you've passed the exam and completed the fingerprinting, you can submit your insurance license application. In New Jersey, applications are typically submitted online through the National Insurance Producer Registry (NIPR). The application fee varies depending on the insurance line you're applying for.

Finally, after submitting your application, you'll need to wait for the review process to be completed. The review typically takes around a month, but it may take longer if there are any issues with your background check. The state will notify you via email once the review is finished.

Pre-licensing education requirements

To obtain a New Jersey life insurance license, you must complete a prelicensing education course. This requirement applies to all individuals looking to sell any type of insurance. The course must be offered by an approved insurance education provider and meet certain mandatory pre-licensing education classroom hours.

The exact number of required hours depends on the type of insurance lines of authority you're applying for. For instance, the Combined Life and Health insurance license requires 40 hours of prelicensing education, while the Personal Lines license only requires 20 hours.

It's important to choose a reliable prelicensing education course that offers flexible learning options and has a good reputation. The cost of the course should also be considered, but it's important to remember that cheaper options may not provide comprehensive resources.

After completing your prelicensing education course, you will need to pass the relevant New Jersey insurance license exam with a score of at least 70%. The exam will be multiple-choice and must be taken within 12 months of completing your course to avoid having to retake the course.

New Jersey licensing exam

The New Jersey licensing exam is the third step to getting your insurance license in the state. The exam is administered by PSI, and you must score 70% or higher to pass. The exam is made up of multiple-choice questions and costs $47 per attempt.

The number of questions on the exam will depend on the line of insurance you are testing for. For example, the Life Producer exam has 83 questions, while the Personal Lines Producer exam has 112 questions. The time limit for all exams is 3.5 hours.

To prepare for the exam, you must complete a prelicensing course that has been approved by the Department of Insurance. The number of required hours of prelicensing education will vary depending on the type of insurance lines of authority you're applying for. For example, the Combined Life and Health authority requires 40 hours of prelicensing education, while the Personal Lines authority requires 20 hours.

Once you have completed your prelicensing course, you can schedule your exam online with PSI or by calling (855) 579-4634. You can take the exam at a physical PSI examination center 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 contain your name and photograph. Acceptable forms of identification include a driver's license, passport, or military ID. You must also bring your certificate of completion from your prelicensing course. You will not be able to take the exam if these requirements are not met.

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

Fingerprinting and background checks

The State of New Jersey requires fingerprint impressions and background checks from all unlicensed applicants. This is a mandatory step in the process of obtaining a New Jersey life insurance license. The fingerprinting process is completed through Live Scan, an electronic fingerprinting system that replaces the use of ink and roll fingerprint cards.

To organise a fingerprinting appointment, you must go to the IdentoGO website or call (877) 503-5981. The booking process will prompt you to input a Service Code, which for insurance producers in New Jersey is 2F16Y3. This code is essential as it allows the fingerprinting agency to identify the reason for the background check and follow the relevant requirements. Your check will not be valid without it. The process costs $66.05 and will initiate a background check into your past conduct to confirm you meet New Jersey's insurance producer regulations.

Any misdemeanours or felonies may affect the outcome of your licensing efforts. If you are concerned about this, you can contact the New Jersey Department of Banking and Insurance by phone or email for more guidance on this topic.

Submitting your insurance license application

Once you have passed your state licensing exam, you are ready to submit your insurance license application. In New Jersey, applications are submitted online through the National Insurance Producer Registry (NIPR).

The cost of submitting your application will depend on the type of insurance 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 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 has been filled out correctly, your license should be issued within a month. However, if there are any items from your background check that need to be looked over, the process may take longer. The state will send you an email regarding the status of your license once the review has been completed.

Continuing education requirements

To get a New Jersey life insurance license, you must complete continuing education requirements to maintain your license. In New Jersey, every insurance license must be renewed every two years before its expiration date to be kept valid. This involves completing 24 hours of continuing education requirements, with three of these hours specifically in approved ethics modules. These requirements apply to both individuals and business entities equally.

License renewal involves keeping on top of any changes to New Jersey insurance statutes and continuing education requirements, which can be found on the New Jersey Department of Banking and Insurance (DOBI) website.

The cost of obtaining a life insurance license in New Jersey can vary depending on the insurance line you apply for and the number of attempts at the exam you need. However, it will normally be between $340 and $540. This should be enough to cover the fees for your pre-licensing education course, examination fees, and licensing application fees.

It is also worth noting that if you're looking to work as a public insurance adjuster, you'll need to obtain a separate license, which may have different continuing education requirements.

Frequently asked questions