Get Licensed To Sell Auto Insurance In New Jersey

If you're looking to sell auto insurance in New Jersey, you'll need to obtain a license. The process involves six steps, starting with figuring out which insurance license you need. This is followed by completing a pre-licensing education course, passing the relevant New Jersey Insurance License Exam, undergoing a fingerprint and background check, and submitting your insurance license application. Finally, you'll need to wait for your application to be reviewed and approved by the New Jersey Department of Banking and Insurance.

Complete a pre-licensing education course

To sell auto insurance in New Jersey, you must obtain a New Jersey insurance license. One of the steps to obtaining this license is to complete a pre-licensing education course. This is a requirement for all individuals looking to sell insurance in the state of New Jersey.

The pre-licensing education course must be offered by an approved insurance education provider and meet certain mandatory pre-licensing education classroom hours. The number of required hours will depend on the type of insurance license you are applying for. For example, a Combined Life and Health license and a Combined Property and Casualty license each require 40 hours, while a Personal Lines license requires 20 hours, and a Limited Lines – Bail Bonds license requires 10 hours.

When choosing a pre-licensing education course, it is recommended to consider the course's flexibility, price, and the provider's reputation. Additionally, it is important to ensure that the course covers the relevant exam content, as completing a pre-licensing education course can increase your chances of passing the licensing exam on your first attempt.

To earn a certificate of completion for your pre-licensing education course, you will need to read each chapter and take an end-of-chapter quiz, scoring at least 70% before progressing to the next chapter. After completing all the chapters, you will need to pass a Certificate Exam with a minimum score of 70%.

It is important to note that the pre-licensing education course is just one step in the process of obtaining a New Jersey insurance license. Other steps include passing the relevant licensing exam, completing a fingerprint and background check, and submitting your license application.

Pass the relevant New Jersey Insurance License Exam

To pass the relevant 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 example, the Combined Life and Health course is 40 hours, while the Personal Lines course is 20 hours.

After completing your pre-licensing education course, you can register for your licensing exam. This can be done through the PSI website, and the exam can be taken online or in person. The exam will consist of multiple-choice questions and will cover both general insurance knowledge and New Jersey-specific insurance regulations and laws. You will need to achieve a score of 70% or higher to pass.

To prepare for the exam, it is recommended to allocate one to two weeks of study time, as this will allow you to go through all the material at least twice. It is also beneficial to take a pre-license course, which can help you memorise the large amount of content that will be covered in the exam.

On the day of the 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.

If you pass the exam, you will receive a successful notification and a score report. If you fail, you will receive a diagnostic report indicating your strengths and weaknesses.

Complete a fingerprint and background check

To sell auto insurance in New Jersey, you must obtain a New Jersey insurance license. As part of the licensing process, you are required to complete a fingerprint and background check. Here is a detailed guide on how to complete this process:

Firstly, understand the relevant laws. Under PL2003, Chapter 199 of New Jersey Law, all applicants for a New Jersey insurance license must submit their fingerprints and provide written consent for a criminal record check. This legal requirement ensures that all insurance producers meet the necessary standards and regulations.

Next, initiate the fingerprinting process by scheduling an appointment with IdentoGO, either through their website or by calling (877) 503 5981. Remember to use the correct Service Code, which is 2F16Y3 for insurance producers in New Jersey. This code is crucial, as it allows the fingerprinting agency to identify the purpose of your background check and follow the relevant procedures. Omitting or using an incorrect code may invalidate your check.

At your fingerprinting appointment, your fingerprints will be captured and processed. This typically involves rolling your fingers on an electronic scanner or a traditional ink pad. Ensure that you follow the instructions provided by the fingerprinting agency to ensure accurate results.

After submitting your fingerprints, the background check will be conducted. This process involves a review of your criminal history, including any misdemeanors or felonies. The background check ensures that you meet the ethical standards required of insurance producers in New Jersey. Any criminal record may impact your licensing application, so if you have concerns, you can contact the New Jersey Department of Banking and Insurance for guidance.

Finally, wait for the results of your background check. The processing time may vary, but it typically takes around a month for the New Jersey Department of Banking and Insurance to review your application and background check. They will notify you via email once the review is complete, and they will contact you if they require additional information or if there are any issues with your application.

Remember, the fingerprinting and background check are essential components of obtaining your New Jersey insurance license. This process helps ensure the integrity and professionalism of the insurance industry in the state. By following the outlined steps, you can complete this requirement and move closer to becoming a licensed insurance agent in New Jersey.

Submit your insurance license application

Once you've completed your pre-licensing education course, passed the relevant New Jersey Insurance License Exam(s), and completed your fingerprinting and background check, you'll be ready to submit your application for an insurance license in New Jersey.

In New Jersey, applications are submitted online through the National Insurance Producer Registry (NIPR). The cost of submitting your application 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 application fee is $95. There is also a small transaction fee of $5.60.

If you've passed the New Jersey producer licensing exam for multiple lines of authority, you'll need to submit a separate application (and pay the respective license fee) for each of these.

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

After you've submitted your application, all that's left to do is wait for it to be reviewed. 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 into further. However, the state will likely get in touch with you to provide 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 sell auto insurance in New Jersey, you must obtain a New Jersey insurance license. This requires completing an insurance prelicensing course, passing a state licensing exam, and applying for a license. After obtaining your license, you must complete 24 credit hours of continuing education every two years, with at least three credits in ethics instruction, to keep your license valid.

To maintain your New Jersey insurance license, you must complete 24 credit hours of continuing education every two years. At least three of these credit hours must be in approved ethics instruction. The deadline for license renewal is the last day of your birth month every two years.

You can complete your continuing education credits through online courses, webinars, or Total Access CE Libraries. These courses provide a safe and convenient learning environment and allow you to take all the courses you want for one price.

When choosing a continuing education course, consider the course's flexibility, price, and reputation of the provider. It is important to select a course that is approved by the New Jersey Department of Banking and Insurance and meets the required number of credit hours.

By planning and completing the required insurance continuing education credits, you can stay compliant with the regulations and maintain your license to sell auto insurance in New Jersey.

Frequently asked questions