New Jersey Insurance License Exam

Passing your New Jersey insurance license exam is a pivotal part of becoming a licensed insurance agent in the state of New Jersey.

In this guide, we’ll break down the general information that you need to know in order to pass your exam, outline the differences between each examination line, and offer tips on both: how to prepare for your New Jersey insurance licensing exam, and on what to do after you pass.

New Jersey Insurance Exam Basics

General Information

The state of New Jersey uses PSI to administer its insurance agent licensing. This means you can register and book all of your licensing examinations through the PSI website. Your test can be carried out online or in person.

Each major insurance line examination is made up of multiple-choice questions and includes both general and state-specific material.

The general questions test your federal insurance product and agent knowledge, whereas the state-specific questions test you on the New Jersey insurance regulations and laws that you will need to know in order to operate as an insurance agent.

Score Explanation

At the end of the examination, your score will be displayed on screen. It will also be emailed to you.

If you fail your examination, you will receive a score report that will also contain a diagnostic report that can be used to determine your strengths and weaknesses. This will be very helpful if you end up attempting the examination again in the future.

You can request a duplicate score report by reaching out to PSI at scorereport@psionline.com. You will need to include your name, candidate ID number, and confirmation number.

Note: You will need to obtain a score of 70% or higher in order to pass the Life, Health, Property, or Casualty Producer exams in New Jersey.

Cost

Your New Jersey insurance license exam cost will depend on the number of examinations that you take:

Examination	Cost	Time Allowed
Life Producer	$38	210 Minutes
Accident & Health Producer	$38	210 Minutes
Property Producer	$38	210 Minutes
Casualty Producer	$38	210 Minutes

Note: You should focus on one exam at a time. This will likely increase the amount of time and effort you can allocate to each examination and should allow you to feel more prepared when you sit your exam.

New Jersey Life and Health Insurance Exam

Below you can find the content outline offered by PSI.

We recommend using it as a checklist when working through your pre-license education course. This way, you’ll be absolutely sure that you haven’t missed any topic that you will be tested on later on.

Life Producer Content Outline

83 questions.

I. Types of Policies

1. Traditional Whole Life Products
2. Interest-Sensitive Life Products
3. Term life
4. Annuities
5. Combination Plans and Variations

II. Policy Riders, Provisions, Options, and Exclusions

1. Policy Riders
2. Policy Provisions and Options
3. Policy Exclusions

III. Completing the Application, Underwriting, and Delivering the Policy

1. Completing the Application
2. Underwriting
3. Delivering the Policy
4. Do Not Call List

IV. Taxes, Retirement, and Other Insurance Concepts

1. Third-Party Ownership
2. Group Life Insurance
3. Retirement Plans
4. Business Insurance
5. Social Security Benefits and Taxes
6. Tax Treatment of Insurance Premiums, Proceeds, Dividends
7. Accelerated Death Benefits — Living Benefits
8. Endowments

V. New Jersey Laws, Rules, and Regulations Common to Life, Accident and Health, Property, and Casualty Insurance

1. State Regulatory Jurisdiction
2. Definitions
3. Licensing
4. Trade Practices
5. Guaranty Associations
6. Ethics

VI. New Jersey Laws, Rules, and Regulations Pertinent to Life and Regulations

1. Credit Life
2. Group Life
3. Marketing Methods and Practices
4. The Insurance Contract

Accident & Health Producer Content Outline

88 questions.

I. Types of Policies

1. Disability Income
2. Accidental Death and Dismemberment
3. Medical Expense Insurance 
4. Medicare Supplement Policies
5. Group Insurance 
6. Long Term Care
7. Cancer Plans
8. Critical Illness Plans
9. Worksite Plans

II. Policy Provisions, Clauses, and Riders

1. Mandatory Provisions
2. Optional Provisions
3. Other Provisions and Clauses
4. Riders
5. Rights of Renewability

III. Social Insurance

1. Medicare
2. Medicaid
3. Social Security Benefits

IV. Other Insurance Concepts

1. Total, Partial, and Residual Disability
2. Owner’s Rights
3. Dependent Children Benefits
4. Primary and Contingent Beneficiaries
5. Modes of Premium Payments 
6. Nonduplication and Coordination of Benefits 
7. Occupational vs. Nonoccupational
8. Tax Treatment of Premiums and Proceeds of Insurance Contracts 
9. Managed Care
10. Workers Compensation
11. Subrogation

V. Field Underwriting Procedures

1. Completing application and obtaining necessary signatures
2. Explaining sources of insurability information 
3. Initial premium payment and receipt and consequences of the receipt 
4. Submitting application (and initial premium if collected) to company for underwriting 
5. Assuring delivery of policy and related documents to client
6. Explaining policy and its provisions, riders, exclusions, and ratings to clients
7. Replacement
8. Contract law

VI. New Jersey Laws, Rules, and Regulations Common to Life, Accident and Health, Property, and Casualty Insurance

1. State Regulatory Jurisdiction
2. Definitions
3. Licensing
4. Trade Practices
5. Guaranty Associations
6. Ethics
7. Fraud
8. Information Privacy

VII. New Jersey Laws, Rules, and Regulations Pertinent to Accident and Health Insurance Only

1. Marketing Methods and Practices
2. Policy Clauses and Provisions 
3. Medicare supplement plans
4. Temporary disability law
5. Health Insurance Reform Markets
6. The Health Care Claims Authorization Processing and Payment Act
7. Group Health Coverage

New Jersey Property and Casualty License Exam

Below you can find the content outline offered by PSI.

You should use this outline as a checklist when working through your pre-license education course in order to ensure that you haven’t missed any topic that you will be tested on later on.

Property Producer Content Outline

79 questions.

I. Types of Policies

1. Personal Lines
2. Commercial Lines
3. Inland Marine
4. Others

II. Insurance Terms and Related Concepts

1. Insurance
2. Insurable Interest
3. Risk
4. Hazard
5. Peril
6. Loss
7. Proximate Cause
8. Deductible
9. Indemnity
10. Actual Cash Value
11. Replacement Cost
12. Limits of Liability
13. Coinsurance/Insurance to Value 
14. Accident
15. Occurrence
16. Cancellation
17. Nonrenewal 
18. Vacancy and Un-occupancy
19. Liability
20. Negligence

III. Policy Provisions and Contract Law

1. Declarations
2. Insuring agreement
3. Conditions
4. Exclusions
5. Definition of the insured
6. Duties of the insured
7. Obligations of the insurance company
8. Mortgagee rights
9. Proof of loss
10. Notice of claim
11. Appraisal 
12. Other Insurance Provision
13. Assignment
14. Subrogation
15. Elements of contract
16. Warranties, representations, and concealment
17. Binders
18. Sources of Insurability Information
19. Fair Credit Reporting Act

IV. New Jersey Laws, Rules, and Regulations Common to Life, Accident and Health, Property, and Casualty Insurance

1. State Regulatory Jurisdiction
2. Definitions
3. Licensing
4. Trade Practices
5. Fraud
6. Ethics
7. Information Privacy

V. New Jersey Laws, Rules, and Regulations Pertinent to Property Insurance Only

1. New Jersey Insurance Underwriting Association 
2. Cancellation/Nonrenewal
3. Surplus Lines 
4. Coastal properties and hurricane risk
5. Commercial Insurance Deregulation

Casualty Producer Content Outline

91 questions.

I. Types of Policies, Bonds, and Related Terms

1. Commercial General Liability
2. Automotive: Personal Auto and Business Auto
3. Workers Compensation Insurance, Employers Liability Insurance, and Related Issues
4. Crime
5. Surety Bonding
6. Professional Liability
7. Umbrella/Excess Liability

II. Insurance Terms and Related Concepts

1. Risk
2. Hazard
3. Indemnity
4. Insurable Interest
5. Actual Cash Value
6. Negligence 
7. Liability
8. Accident
9. Occurrence
10. Burglary 
11. Robbery
12. Theft
13. Mysterious Disappearance
14. Binders
15. Warranties
16. Representations
17. Concealment
18. Bodily Injury Liability
19. Property Damage Liability
20. Personal Injury Liability
21. Limits of Liability
22. Deductibles
23. Insured Contract
24. Deposit Premium/Audit
25. Certificate of Insurance

III. Policy Provisions

1. Declarations
2. Insuring Agreement
3. Conditions
4. Exclusions and Limitations
5. Definition of the Insured
6. Duties of the Insured After a Loss 
7. Cancellation and Nonrenewal Provisions
8. Additional Payments
9. Proof of Loss
10. Notice of Claim
11. Arbitration
12. Other Insurance
13. Subrogation
14. Compliance with Provisions of Fair Credit Reporting Act
15. Claims Made Policy Form
16. Salvage
17. Loss Settlement Provisions Including Consent to Settle a Loss

IV. New Jersey Laws, Rules, and Regulations Common to Life, Accident and Health, Property, and Casualty Insurance

1. State Regulatory Jurisdiction 
2. Definitions
3. Licensing
4. Trade Practices
5. Fraud 
6. Ethics
7. Information Privacy

V. New Jersey Laws, Rules, and Regulations Pertinent to Casualty Insurance Only

1. Auto Insurance
2. Workers’ Compensation 
3. Commercial Insurance Deregulation
4. Cancellation and Nonrenewal
5. Surplus Lines
6. Certificates of Insurance

How to Pass the New Jersey Insurance Exam

Passing your New Jersey insurance exam ultimately comes down to your mindset and degree of preparation.

We have composed a few helpful exam tips and tricks that should help you perform as well as you can during your exam day.

Get a Pre-License Course

Getting a pre-license course can go a long way in helping memorize the prolific amount of content that you will have to learn for your exam. It is also a legal requirement in the state of New Jersey.

We recommend ExamFX’s course because it offers a variety of helpful features, including:

• More course options than any other provider
• Impressive 93% overall licensing exam pass rate
• Generous money-back guarantee

Make Enough Time to Study

Not leaving enough time to prepare is one of the easiest ways to ensure that you do not pass your exam on your first attempt.

Remember, there are zero questions on your exam that are based on common sense or critical thinking. All questions are purely factual, and so will relate to how well you understand and remember the content that you have learned.

We recommend allocating around one to two weeks to prepare for your exam, as this should allow you to go through all of the material at least twice.

Control Test Anxiety

Even though you cannot control whether you get exam anxiety or not, you can take a few steps when preparing to limit its effect on your performance:

• Establish a consistent pretest routine — Acclimate yourself to exam conditions by following a specific routine on each practice exam at home. This should help you feel less anxious during your exam day.
• Get plenty of sleep — Lack of sleep can exacerbate your anxiety and increase your self-doubt. Make sure you are consistently getting a good night’s sleep in the week leading up to your exam.
• Study effectively — This sounds obvious, but make sure you are actually tailoring your studying to the exam that you are taking. Remember, there are no critical thinking or common sense questions involved.
• Arrive early — If you are planning to sit your exam in person, we recommend you arrive at least 30 minutes before it’s due to start in order to get used to your surroundings and have time to check in with your center’s administrator.

Getting Your New Jersey Insurance License

Your next steps will depend on whether you actually passed your exam, as well as on whether you plan to get licensed for any additional lines.

You can apply for your license up to 12 months after you complete your exam, so if you would like to attempt passing additional insurance line exams before filing your licensing application, you are totally free to do that.

After you have passed your insurance licensing exam, you will need to:

• Complete a fingerprint and background check
• File your licensing application
• Wait for your application to be reviewed

New Jersey Department of Insurance Contact Information

Mailing Address:

New Jersey Department of Banking and Insurance
20 West State Street
P.O. Box 327
Trenton, New Jersey 08625

Phone: (609) 292-5316 x 50552

Fax: (609) 984-5263

Email: inslic@dobi.nj.gov

Website: http://www.nj.gov/dobi

License Search: New Jersey Insurance License Search and Lookup