October 19, 2022

New Jersey Insurance License Exam

Written by: Ethan Peyton

Cartoon woman holding New Jersey Insurance License Exam document

    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.

    Recommended Pre-License Course

    Before taking your insurance exam, we recommend completing a pre-license education course. This is actually a requirement in New Jersey, and can also go a long way in helping you learn all of the information that you will need to know during your exam.
    4.7 out of 5 starsKaplan Education Company

     

    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

    We recommend reading our in-depth How to Pass the Life Insurance Exam guide for a better overview.

     

    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

    We recommend reading our Property and Casualty Insurance exam article for a more in-depth overview.

     

    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 Kaplan’s course because it offers a variety of helpful features, including: 

    • Online exam simulations
    • Live online training
    • Printable study guides 
    • End of chapter reviews

    For more information, we recommend reading our Kaplan Insurance Course Review.

     

    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.

    For a more in-depth overview of how you can prepare for your New Jersey insurance exam, we recommend reading our How to Pass the Insurance Exam article.

     

    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

    Have a look at our How to Become an Insurance Agent in New Jersey review for more information on all the steps that you will need to take after passing your insurance exam.




    New Jersey Insurance Exams FAQ

    How often do I have to renew my New Jersey insurance license?

    You will need to renew your insurance license every two years in order to continue operating as a legitimate insurance agent in New Jersey. The deadline for this is the end of your birthday month.

    Example: Jane Doe was initially licensed in 2022 and her birthday is on September 23. Her renewal would be due September 30, 2024.

    For more information, see our guide on How to Renew Your Insurance License in New Jersey.

     

    How long is the New Jersey insurance exam?

    This will depend on the exam in question.

    Having said that, the Life, Accident & Health, Property, and Casualty Producer exams are all three and a half hours long.

     

    How many times can you take the New Jersey insurance exam?

    There is no limit to how many times applicants can sit an insurance license exam in New Jersey. Keep in mind that you will need to wait at least 24 hours between each attempt.

     

    How many questions are on the New Jersey insurance exam?

    This will depend on the exam that you are taking:

    • Property Producer: 79 questions
    • Casualty Producer: 91 questions
    • Life Producer: 83 questions
    • Accident & Health: 88 questions

    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




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