Get Licensed To Sell Auto Insurance In New Jersey

If you're looking to sell auto insurance in New Jersey, you'll need to get a license. Here's a step-by-step guide to help you get started:

First, you'll need to decide which type of insurance license you need. For selling auto insurance, you'll typically need a Property & Casualty (P&C) license. This will allow you to sell insurance for cars, homes, or businesses.

Next, complete a pre-licensing education course. This is a requirement for anyone looking to sell insurance in New Jersey, and the course must be offered by an approved provider. The number of hours required will depend on the type of insurance license you're seeking. For a P&C license, you'll need to complete 40 hours of pre-licensing education.

After that, you'll need to pass the relevant New Jersey insurance license exam. The exam will depend on the type of insurance you want to sell, and it will cost $47 per attempt.

Once you've passed your exam, you'll need to complete a fingerprinting and background check. This is done through IdentoGO and will cost $66.05.

Finally, submit your insurance license application online through the National Insurance Producer Registry. The cost of the application will depend on the type of license you're applying for. For major line licenses, the fee is $170, while limited lines licenses cost $95. There is also a small transaction fee of $5.60.

Complete a pre-licensing education course

To sell auto insurance in New Jersey, you'll need to obtain a New Jersey insurance license. The process of getting your license will involve five steps, one of which is to complete a pre-licensing education course.

The pre-licensing education course is a mandatory requirement for all individuals looking to sell insurance in the state of New Jersey. The course must be offered by an approved insurance education provider, and it must meet certain classroom hour requirements. The number of required hours will depend on the type of insurance license you're applying for:

• Combined Life and Health: 40 hours
• Combined Property and Casualty: 40 hours
• Personal Lines: 20 hours
• Limited Lines – Bail Bonds: 10 hours

When choosing a pre-licensing education course, consider the following factors:

• Flexibility: Does the course allow for flexible learning, or does it require completion within a short time frame?
• Price: While cost is an important consideration, remember that you often get what you pay for.
• Reputation: How reliable is the provider? Do they have a track record of providing sufficient and complete resources for the exam?

Over 81% of readers use ExamFX's online courses, which come with a money-back guarantee, to prepare for their insurance license exams. You can also refer to StateRequirement's in-depth overview of the five best pre-license education courses in 2024 for more information.

Pass the New Jersey Insurance License Exam

Passing the New Jersey Insurance License Exam is a pivotal part of becoming a licensed insurance agent in the state. Here is a comprehensive guide to help you pass the exam:

New Jersey Insurance Exam Basics

The state of New Jersey uses PSI to administer its insurance agent licensing. You can register and book all your licensing examinations through the PSI website. The test can be carried out online or in person. Each major insurance line examination is in a multiple-choice format and includes both general and state-specific material. The general questions test your federal insurance product and agent knowledge, while the state-specific questions assess your understanding of New Jersey insurance regulations and laws, which are essential for operating as an insurance agent.

Exam Content

The content of your New Jersey Insurance License Exam will depend on the type of insurance license you are pursuing. Here is an overview of the content outlines provided by PSI for each license type:

Life and Health Insurance Exam

• Types of Policies: This section covers different types of life insurance policies, such as traditional whole life products, interest-sensitive life products, and combination plans.
• Policy Riders, Provisions, Options, and Exclusions: Here, you will be tested on various provisions and options related to life insurance policies.
• Completing the Application, Underwriting, and Delivering the Policy: This section focuses on the process of applying for and delivering life insurance policies.
• Taxes, Retirement, and Other Insurance Concepts: It includes topics like third-party ownership, group life insurance, social security benefits, and tax treatment of insurance premiums.
• New Jersey Laws, Rules, and Regulations: This part of the exam will test your knowledge of state-specific regulations pertaining to life, accident, health, property, and casualty insurance.
• New Jersey Laws and Regulations Pertinent to Life and Health Insurance: Here, you will be assessed on your understanding of marketing methods, the insurance contract, and other regulations specific to life and health insurance in New Jersey.

Property and Casualty License Exam

• Types of Policies: You will need to know the different types of property and casualty insurance policies.
• Insurance Terms and Related Concepts: This section covers important insurance concepts, such as coinsurance/insurance to value and vacancy and un-occupancy.
• Policy Provisions and Contract Law: Here, you will be tested on the definition of the insured, duties of the insured, obligations of the insurance company, and other related topics.
• New Jersey Laws, Rules, and Regulations: This part focuses on state-specific regulations common to life, accident, health, property, and casualty insurance.
• New Jersey Laws and Regulations Pertinent to Property Insurance: Here, you will need to know about the New Jersey Insurance Underwriting Association, cancellation/nonrenewal, coastal properties, and hurricane risk.
• Casualty Producer Content: This section covers types of policies, bonds, and related terms, including commercial general liability, automotive insurance, workers' compensation insurance, and professional liability.
• Insurance Terms and Related Concepts: You will be tested on concepts like mysterious disappearance, bodily injury liability, property damage liability, and personal injury liability.
• Policy Provisions: This section includes exclusions and limitations, definition of the insured, duties of the insured after a loss, and cancellation and nonrenewal provisions.
• New Jersey Laws, Rules, and Regulations: As with the other sections, this part focuses on state-specific regulations common to all types of insurance.
• New Jersey Laws and Regulations Pertinent to Casualty Insurance: Here, you will need to know about workers' compensation, commercial insurance deregulation, cancellation and nonrenewal, and certificates of insurance in the context of casualty insurance.

Tips for Passing the New Jersey Insurance Exam

Passing the New Jersey Insurance Exam depends on your mindset and degree of preparation. Here are some tips to help you succeed:

• Get a Pre-License Course: Enrolling in a pre-license course can significantly enhance your understanding of the exam content. It is also a legal requirement in New Jersey. ExamFX's course is highly recommended due to its variety of helpful features and impressive pass rate.
• Make Enough Time to Study: Allocating sufficient time to study is crucial. Aim for around one to two weeks of preparation, allowing you to go through the material at least twice.
• Control Test Anxiety: To reduce exam anxiety, establish a consistent pre-test routine, get plenty of sleep, study effectively, and arrive early on exam day to familiarize yourself with the surroundings.

Remember, the key to passing the New Jersey Insurance License Exam is thorough preparation, effective study strategies, and a calm mindset on exam day. Good luck with your exam!

Complete a fingerprint and background check

To sell auto insurance in New Jersey, you must obtain a New Jersey insurance license. One of the requirements for this is to complete a fingerprint and background check. This process is completed through IdentoGO and costs $66.05. It will initiate a background check into your past conduct to confirm you meet New Jersey’s insurance producer regulations.

To organise a fingerprinting appointment, you can go to the IdentoGO website or call (877) 503 5981. During the booking process, you will be prompted to input a Service Code, which, for insurance producers in New Jersey, is 2F16Y3. It is essential that you input the correct code when booking an appointment, as this 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 background check will involve a search of your criminal and non-criminal history. This will include biographic information, such as your full name, date of birth, and Social Security number, as well as arrest information, including felonies, misdemeanours, and infractions, and their outcomes. Fingerprint background checks can help create safer workplaces, improve security, reduce risk, and safeguard customer data.

In addition to the fingerprint background check, it is important to conduct other searches, such as criminal record checks at the county level, employment verification, and education verification.

Submit your insurance license application

With your exams and fingerprinting out of the way, you can now apply for your license. In New Jersey, applications are submitted online through the National Insurance Producer Registry.

The cost of applying for a license varies depending 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 a 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. This is the typical amount of time it takes for a license application and background check to be reviewed.

However, it's important to note that the issuance of your insurance license may take longer if there are any items from your background check that need further review. In such cases, the state will likely contact you to provide more context.

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

Apply for any relevant securities licenses

If you're planning to sell advanced life insurance products in New Jersey, you'll need to pass the Securities Industry Essentials (SIE) exam and obtain the relevant securities licenses. This includes the Series 6, 7, and 63 licenses. Here are the steps to obtain these licenses:

• Take the SIE Exam: The SIE exam is a basic test introduced in October 2018 to assess your knowledge of the securities industry. You don't need to be sponsored or employed in the financial services sector to take this exam. Passing the SIE exam will make your resume stand out when applying for jobs in the financial industry.
• Join a FINRA-Member Firm: To register for the Series 6 or 7 exams, you need to be sponsored by a firm, company, or organization that is a member of the Financial Industry Regulatory Authority (FINRA). If you already work in the financial industry, discuss registration for the exam with your employer. Many companies will cover the costs associated with the exam.
• Register for a FINRA License Exam: To register, submit the Form-U4 through FINRA's Web Central Registration Depository (CRD). The firm's human resources or professional development office can assist with the required registration forms. You will need to provide your name, the firm's name and details, and disclose any legal actions against you. The application can be completed online or by submitting a hard copy.
• Study for the FINRA License Exam: Preparation is key to passing any licensing exam. The Series 6 and 7 exams cover a lot of material, so it's essential to master the content. Enrolling in a study course will help ensure you're ready for the test. Practice exams are also beneficial to gauge your preparation and familiarize yourself with the exam format.
• Pass the FINRA License Exam: Get a good night's rest before the exam, and eat a healthy breakfast on the day. The testing center will provide directions, check-in instructions, and a list of prohibited items. Only bring approved items to the test center, such as eyeglasses, required medications, and light outerwear. Leave all prohibited items, including study materials, personal electronic devices, and watches, at home or in your vehicle.

By following these steps, you can obtain the necessary securities licenses to sell advanced life insurance products in New Jersey.

Frequently asked questions