MEMORIZE THESE NUMBERS!
18
Minimum age
20 hrs
Prelicensing per line
1 year
Exam validity
2 years
License term
24 hrs
CE (3 ethics)
10 days
Before expiration to renew
30 days
Notify address change
60 days
Temp work authority
90 days
Change to resident
180 days
Temp license (death)
$20
Renewal fee
$100
Late renewal fee
5 years
Wait after revocation
10 years
Business entity ban
15 days
Appointment notice
1. Types of Licensees
Lines of Authority
A person cannot sell, solicit, or negotiate insurance unless licensed for the appropriate line(s):
Major Lines:
- •Life
- •Accident and Health or Sickness
- •Variable Life and Variable Annuity*
- •Property
- •Casualty
- •Personal Lines
- •Surplus Lines
- •Title Insurance
*Requires securities license too!
Limited Lines:
- •Bail bonds
- •Car rental insurance
- •Credit insurance
- •Ticket insurance
- •Travel insurance
- •Group mortgage cancellation
- •Legal insurance
- •Self-storage personal property
Producer License Requirements
Be 18 years of age or older
Submit NAIC uniform application + fees
Complete prelicensing education (unless exempt)
Pass exam within 1 year of application
Be NJ resident OR plan to work at NJ office
No controlled business (not just for self/family)
Example: Getting licensed just to write your own policies or your spouse's business = NOT allowed
Good reputation, no crimes of moral turpitude
Examples: Fraud, theft, forgery, perjury = moral turpitude. Traffic tickets = NOT moral turpitude
Submit fingerprints + background check consent
Types of Producer Licenses
Resident Producer
Individual domiciled in NJ or working at NJ office
Must pass NJ exam & complete prelicensing
Business Entity
Corporation, LLC, partnership licensed as producer
Must have at least 1 licensed partner/officer
Nonresident Producer
Licensed in another state, wants to transact in NJ
Must appoint Commissioner as agent for legal process
Example: A PA-licensed agent with NJ clients can get a NJ nonresident license
Surplus Lines Producer
Writes business for unauthorized insurers
Must be NJ resident + hold P&C license
Example: Client needs coverage no NJ-admitted insurer will write (high-risk property) → surplus lines producer places it with Lloyd's of London
Business Entity Ban:
A producer license will NOT be issued to a business entity operated by a person who had their license revoked within the past 10 years.
Real-World Licensing Scenarios
Scenario 1: Resident vs. Nonresident
Maria (Newark, NJ)
Maria lives and works in Newark. She needs a Resident Producer License. She must complete 20 hours prelicensing, pass the NJ exam, and submit fingerprints.
Tom (Philadelphia, PA)
Tom lives in PA but has clients in NJ. He needs a Nonresident Producer License. He must be licensed in PA first, then apply to NJ and appoint the Commissioner as his agent for service of process.
Scenario 2: Controlled Business Violation
The Setup: Jake gets his P&C license and immediately sells policies only to his family members and his own business properties.
The Problem: If Jake's commissions from family/self (controlled business) exceed what he earns from the general public, he's violating the "no controlled business" rule. His license can be denied or revoked.
The Rule: A producer can't primarily exist to write insurance on themselves, their family, or their employer's property.
Scenario 3: Moral Turpitude Examples
License DENIED:
- - Convicted of insurance fraud
- - Convicted of embezzlement
- - Convicted of forgery
- - Convicted of perjury (lying under oath)
License NOT Affected:
- - Speeding tickets
- - Parking violations
- - Minor traffic infractions
- - Non-dishonesty misdemeanors
Key: "Moral turpitude" = crimes involving dishonesty, fraud, or breach of trust
2. Obtaining a License
Prelicensing Education
20 Hours
Per line of authority
Must include NJ regulations
Self-study & online courses count
After completing prelicensing, must pass state exam.
Professional Designation Waivers
Commissioner may waive prelicensing if applicant holds approved designation:
For Life, A&H, Variable:
For Property, Casualty, Surplus:
Temporary Work Authority
60 Days
Maximum duration
After completing all required procedures, applicant can begin working immediately with temporary work authority while waiting for actual license.
Expires when actual license is issued or after 60 days (whichever is first)
Who Does NOT Need a License?
Key: Not directly involved in sales + no commission received
3. Maintenance and Duration of License
License Duration & Renewal
Years Valid
Expiration
Expires on last day of producer's birth month
$20
Renewal Fee
$100
Late Renewal Fee
12 months
Late Renewal Window
Continuing Education (CE) Requirements
24
Total Hours
21
General Hours
3
ETHICS Hours
Nonresident producers who satisfy CE in home state are exempt from NJ CE requirements (if home state has reciprocity).
Renewal Checklist
Nonresident Moving to NJ
30 days
Notify address change
90 days
Request resident status
+ Fingerprints
Submit form
4. License Refusal and Termination
Cancellation
Voluntary termination by licensee
Return license to Department
Cannot avoid disciplinary hearing!
Suspension
Temporary loss of license
Can reapply immediately after suspension ends
Revocation
Permanent loss of license
Must wait 5 YEARS to reapply!
Grounds for Revocation or Suspension
Important Rules:
- • All licenses are property of the State of NJ - must be returned upon suspension/revocation
- • Person with revoked license cannot work in any capacity with a licensed producer
- • After revocation, must submit affidavit describing how character has improved during the 5 years
- • Surplus lines: Failure to maintain bond = void authority
5. Contractual Relationships
Company Appointing Producer
Contract signed OR first application submitted
Insurer notifies Commissioner of appointment
Agency Contract Must Specify:
- • Lines of authority the producer may represent
- • Duties, responsibilities, and limitations
Insurer cannot accept business produced before individual was licensed!
Termination of Agency Contract
15 Days
To notify Commissioner
If insurer cancels agency contract, must notify Commissioner in writing. Failure implies contract still exists.
Temporary License (Death/Disability)
180 Days
Maximum
No examination required for temporary license in special circumstances.
May Be Issued To:
- • Death/disability: Surviving spouse, personal representative, or business entity member
- • Military service: Designee of the licensed agent
- • Public interest: Any person when Commissioner deems necessary
Commissioner may require temporary licensee to have a licensed sponsor.
Exam Trap Alerts
Variable products: Require BOTH insurance license AND securities license.
Surplus lines: Must be NJ RESIDENT + hold P&C license.
24 CE hours: 3 must be in ETHICS - not optional!
Canceling to avoid discipline: Doesn't work - disciplinary action continues.
15 days: Both for appointment notice AND termination notice to Commissioner.
After revocation: Cannot work in ANY capacity with licensed producer for 5 years.
Quick Reference Summary
| Time Period | What It's For |
|---|---|
| 10 days | Submit renewal before expiration / Appeal Commissioner's retake order |
| 15 days | Insurer notifies Commissioner of appointment OR cancellation |
| 30 days | Notify address change / Notify of conviction |
| 60 days | Temporary work authority maximum |
| 90 days | Request resident status after moving to NJ / Apply from another state |
| 180 days | Temporary license for death/disability/military |
| 1 year | Exam validity / Late renewal window / Public employment exemption |
| 2 years | License term / CE period |
| 4 years | Certification of license status history |
| 5 years | Wait after revocation to reapply |
| 10 years | Business entity ban if operated by revoked person |