Life Insurance Test: Is New Jersey's Exam Tough?

The New Jersey Life Insurance test is a requirement for anyone wanting to become a licensed life insurance agent in the state. The test is administered by PSI Services LLC, an independent testing service, and contains 83 scored questions across 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, terms, rules, regulations, and practices specific to New Jersey. To pass, candidates need a score of 70% or higher, and they have 210 minutes to complete the exam. While the test is not considered overly difficult, especially with the help of a pre-license course, it is important to prepare thoroughly as it covers a wide range of topics and all questions are factual.

How to get your New Jersey life insurance license

The New Jersey Department of Banking and Insurance (DOBI) requires anyone selling insurance in the state to hold an insurance producer license. The type of license you need will depend on the type of insurance you want to sell. For example, if you want to sell life insurance, you will need a life insurance license.

The process of getting your New Jersey life insurance license involves five main steps:

• Complete a prelicensing course: Before taking the state licensing exam, you must complete a prelicensing course. The number of hours of prelicensing education you need will depend on the type of insurance license you are applying for. For a life insurance license, you will need 20 hours of prelicensing education, three of which must focus on ethics coursework. You can take the course online or in a classroom.
• Pass the state licensing exam: After completing your prelicensing course, you will need to pass the state licensing exam. The exam will cover both general insurance product knowledge and state-specific insurance laws, regulations, and practices. The exam is multiple-choice and you need a score of 70% or higher to pass. The exam costs $45 and you will need to pay by credit card, debit card, or voucher when making your reservation.
• Get fingerprinted: The State of New Jersey requires fingerprint impressions from all unlicensed applicants. You can schedule an appointment online or by calling (877) 503-5981. The cost of fingerprinting services is $66.05.
• Apply for your license: After passing the exam, you can submit your insurance application through the National Insurance Producer Registry (NIPR). The application fee is $170 plus a $5.60 transaction fee, and you must apply online. You must apply for your license within 12 months of passing the exam.
• Plan for continuing education: To renew your license, you will need to complete 24 credit hours of continuing education every two years, with at least three of these hours allocated to approved ethics instruction.

The New Jersey life insurance exam

The exam is divided 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. The exam fee is $45, which must be paid at the time of reservation by credit card, debit card, or voucher.

To prepare for the exam, it is recommended to complete a pre-license course, such as those offered by Kaplan Financial Education. These courses provide specific industry knowledge that will be tested during the exam and help you understand your duties as a life insurance agent. The cost of the course is $149 or more. It is also important to make enough time to study and prepare for the exam, as the content is purely factual.

On the day of the exam, you must bring two valid forms of government-issued identification, one of which must include your photo, and your certificate of completion from the pre-license course. The exam is proctored, meaning an official proctor will closely monitor you in a controlled environment. You will have 210 minutes to complete the 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. However, you will need to pay the exam fee again for each attempt.

The pre-license course

Course Requirements:

In New Jersey, individuals seeking a life insurance license must complete a pre-license course as a legal requirement. The course duration is 24 hours, including three hours focused on ethics coursework. The course can be completed online or in a traditional classroom setting, and it covers specific industry knowledge that will be tested during the exam.

Course Providers:

Several providers offer pre-license courses, including Kaplan Education Company and ExamFX. These companies provide comprehensive study packages with high pass rates. For example, Kaplan offers online exam simulations, live online training, printable study guides, and end-of-chapter reviews.

Course Content:

The course content will vary depending on the provider, but it generally covers the following topics:

• Types of Policies: Traditional whole life products, interest-sensitive life products, term life, annuities, and combination plans.
• Policy Riders, Provisions, Options, and Exclusions: Policy riders, provisions, exclusions, and other related topics.
• Completing the Application, Underwriting, and Delivering the Policy: This section covers the process of completing the application, underwriting, and delivering the policy to the client.
• Taxes, Retirement, and Other Insurance Concepts: Including third-party ownership, group life insurance, social security benefits, tax treatments, and accelerated death benefits.
• New Jersey Laws, Rules, and Regulations: Focusing on regulations specific to life insurance in New Jersey, including licensing, trade practices, and ethics.

Study Tips:

To make the most of your pre-license course, it is recommended to allocate sufficient time for studying, typically around one to two weeks. The exam questions are purely factual, so a thorough understanding of the course content is essential. Utilize the provided study materials, such as practice exams and flashcards, to reinforce your knowledge.

In conclusion, the pre-license course is an essential step in obtaining a life insurance license in New Jersey. By choosing a reputable course provider and dedicating sufficient time to studying, you can confidently approach the licensing exam and take the next step towards becoming a licensed life insurance agent in the state.

The application process

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

Before taking the New Jersey life insurance licensing exam, you must complete a 24-hour pre-license course on life insurance, including three hours of ethics coursework. This course will equip you with the knowledge and tools needed to prepare for the exam. Kaplan Education Company offers a course for $149+.

Step 2: Take the New Jersey Life Insurance Licensing Exam

The New Jersey life insurance licensing exam is administered by PSI and costs $45. It consists of 83 scored questions across two sections: general and state-specific knowledge. You will have 210 minutes to complete the exam. 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.

Step 3: Get a Fingerprint-Based Background Check

After taking the exam, you must obtain a fingerprint-based background check from IdentoGO for a fee of $66.05. Schedule an appointment on their website or by calling 877-503-5981, and use service code 2F16Y3. Keep the original receipt for your records and attach a copy to your license application.

Step 4: Complete a New Jersey Life Insurance License Application

Once you have passed the exam and completed the background check, you can apply for your New Jersey life insurance license online via the National Insurance Producer Registry (NIPR). The application fee is a $170 fee, plus a $5.60 transaction fee. Submit your completed license application within 12 months of passing the exam.

Step 5: Watch for Your Application Results

After submitting your application, the New Jersey Department of Banking & Insurance will review it, usually within one to five business days. They will then email you with their decision or request additional information. You can print your license from the NIPR website once it has been approved.

Maintaining your license

Once you have passed your exams and your licensing application has been approved, you will be a qualified insurance agent in New Jersey. However, there are a few steps you will need to take to maintain your license.

Firstly, you will need to complete 24 credit hours of continuing education every two years, with at least three of these hours allocated to approved ethics instruction. This applies to both individuals and business entities.

Secondly, you will need to renew your insurance license every two years to continue operating as a legitimate insurance agent in New Jersey. The deadline for this is the end of your birthday month. For example, if your birthday is on 23 September, your renewal would be due on 30 September.

To avoid delays in renewing your license, it is recommended that you 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 and Insurance.

There is a $150 renewal fee to pay, with a late fee of $250.

Frequently asked questions