New Jersey Life and Health Updated
Actual Question and Answer (2026/2027)
| Practice Questions
• Commissioner of Insurance -✓✓ The Commissioner of Insurance has the power
to conduct investigations, administer oaths, interrogate licensees, issue subpoenas,
regulate insurers for insolvency, suspend and revoke licenses for just cause, issue
cease and desist orders, regulate most insurance rates, make a report each year
concerning the department's operations and submit to the Governor, create
regulations to enforce insurance laws, impose penalties for violations of the
insurance code, amend insurance rules and regulations, and establish continuing
education requirements.
• Public Hearing Notice -✓✓ Any public hearing required shall be held by the
Commissioner, and the notice must be delivered by registered or certified mail,
scheduled at least 10 days after the notice is delivered.
• Penalties -✓✓ The Commissioner may place on probation, suspend, or refuse to
issue or renew an insurance producer's license or may levy a penalty of up to
$5,000 for the first violation and up to $10,000 for each subsequent violation.
• Certificate of Authority -✓✓ The Commissioner will examine the financial
affairs of all insurers before issuing a certificate of authority to transact business in
New Jersey.
• Solvency -✓✓ The Commissioner will suspend the certificate of authority of any
insurer that becomes insolvent, is threatened with insolvency, or is delinquent in
claims payment.
,• Insurance Producer -✓✓ Insurance producer is a term commonly applied to an
agent, broker, personal producing agent, or general agent that produces business
for the insurer.
• Insurance Agent -✓✓ An insurance agent is an insurance producer authorized by
an insurance company to act as its agent to solicit, negotiate, or sell insurance
contracts on its behalf or to collect insurance premiums and countersign insurance
policies on its behalf.
• Sell, Solicit, and Negotiate -✓✓ The insurance code defines solicitation of
insurance as the attempt to sell insurance to a person from a particular insurer. The
sale of insurance is the exchange of an insurance contract on behalf of an insurer
for any valuable consideration. The negotiation of insurance involves any act that
provides a prospective buyer with information about the benefits, terms, or
conditions of a policy.
• Insurance Consultant -✓✓ An insurance consultant is any person who, for a fee,
offers to examine any policy for the purpose of giving advice or recommendations
with respect to the benefits provided by the contract. A consultant must be licensed
in the State of New Jersey.
• Consultant Fee Agreement -✓✓ In order to receive fees other than commissions
from an insurance prospect, an insurance producer acting as a consultant would
first obtain a signed written memorandum from the prospect stating the amount of
compensation.
• Fee Relationship -✓✓ For a New Jersey insurance producer to charge a
prospective insured for analyzing insurance coverages, there must be a reasonable
relationship between the fee and the nature of the services performed.
,• Insurance Broker -✓✓ An insurance broker is an insurance producer who
represents the insured (for a fee) and places insurance with an insurance company
that he does not represent as an agent.
• Business Entity -✓✓ A business entity that acts as an insurance producer in any
manner (sells, solicits, negotiates, advertises, collects commission) must be
licensed in New Jersey.
• Limited lines authority -✓✓ This includes bail bonds, credit insurance, ticket
insurance, group mortgage coverage, legal insurance, self-storage and personal
property insurance, title insurance, and surplus lines insurance.
• Reinsurance -✓✓ Reinsurance is a contract under which an originating insurer,
called the ceding insurer, buys insurance for itself from another insurer called the
assuming insurer, with respect to part or all of the insurance of the originating
(ceding) insurer.
• Retrocession -✓✓ Retrocession (or retroceding) occurs when a reinsurer accepts
too many risks and has to reinsure some of those with another reinsurance
company.
• Controlled business -✓✓ Controlled business can be defined as policies written
on people that the licensed producer has direct influence over: including family,
employers, and/or any company to which the producer has stock control.
• Commissioner's authority on controlled business -✓✓ The Commissioner may
revoke a producer's license if it is found that the commissions earned on controlled
business during any 12-month period exceeds 50% of the producer's aggregate
commissions on all business written.
, • Licensing Process -✓✓ An applicant for a resident producer license in New
Jersey must be at least 18 years of age, has not committed any act that is ground
for denial, suspension, or revocation, meet the prelicensing education requirements
required by New Jersey law, have passed the state exam for the lines of authority
in which licensure is sought, and submit the application with fees.
• Prelicensing requirements for Life insurance -✓✓ The time requirements for
prelicensing education courses for Life insurance is 20 hours.
• Prelicensing requirements for Accident and health insurance -✓✓ The time
requirements for prelicensing education courses for Accident and health insurance
is 20 hours.
• License renewal -✓✓ As of January 1, 2007, producer licenses are renewable
every two years with fee, renewal application, and proof of completing continuing
education (CE).
• Nonresident producers -✓✓ A producer who holds a resident license in a
different state may apply for a nonresident license in New Jersey, as long as both
states have a reciprocal agreement.
• Temporary license -✓✓ A temporary license may be issued in cases where a
producer has become disabled or dies, requiring a replacement to service the
producer's business, and is valid for a maximum of 180 days.
• Continuing education requirements -✓✓ Resident producers must complete 24
hours of continuing education every 2 years to keep their license active, with 3
hours in ethics.
Actual Question and Answer (2026/2027)
| Practice Questions
• Commissioner of Insurance -✓✓ The Commissioner of Insurance has the power
to conduct investigations, administer oaths, interrogate licensees, issue subpoenas,
regulate insurers for insolvency, suspend and revoke licenses for just cause, issue
cease and desist orders, regulate most insurance rates, make a report each year
concerning the department's operations and submit to the Governor, create
regulations to enforce insurance laws, impose penalties for violations of the
insurance code, amend insurance rules and regulations, and establish continuing
education requirements.
• Public Hearing Notice -✓✓ Any public hearing required shall be held by the
Commissioner, and the notice must be delivered by registered or certified mail,
scheduled at least 10 days after the notice is delivered.
• Penalties -✓✓ The Commissioner may place on probation, suspend, or refuse to
issue or renew an insurance producer's license or may levy a penalty of up to
$5,000 for the first violation and up to $10,000 for each subsequent violation.
• Certificate of Authority -✓✓ The Commissioner will examine the financial
affairs of all insurers before issuing a certificate of authority to transact business in
New Jersey.
• Solvency -✓✓ The Commissioner will suspend the certificate of authority of any
insurer that becomes insolvent, is threatened with insolvency, or is delinquent in
claims payment.
,• Insurance Producer -✓✓ Insurance producer is a term commonly applied to an
agent, broker, personal producing agent, or general agent that produces business
for the insurer.
• Insurance Agent -✓✓ An insurance agent is an insurance producer authorized by
an insurance company to act as its agent to solicit, negotiate, or sell insurance
contracts on its behalf or to collect insurance premiums and countersign insurance
policies on its behalf.
• Sell, Solicit, and Negotiate -✓✓ The insurance code defines solicitation of
insurance as the attempt to sell insurance to a person from a particular insurer. The
sale of insurance is the exchange of an insurance contract on behalf of an insurer
for any valuable consideration. The negotiation of insurance involves any act that
provides a prospective buyer with information about the benefits, terms, or
conditions of a policy.
• Insurance Consultant -✓✓ An insurance consultant is any person who, for a fee,
offers to examine any policy for the purpose of giving advice or recommendations
with respect to the benefits provided by the contract. A consultant must be licensed
in the State of New Jersey.
• Consultant Fee Agreement -✓✓ In order to receive fees other than commissions
from an insurance prospect, an insurance producer acting as a consultant would
first obtain a signed written memorandum from the prospect stating the amount of
compensation.
• Fee Relationship -✓✓ For a New Jersey insurance producer to charge a
prospective insured for analyzing insurance coverages, there must be a reasonable
relationship between the fee and the nature of the services performed.
,• Insurance Broker -✓✓ An insurance broker is an insurance producer who
represents the insured (for a fee) and places insurance with an insurance company
that he does not represent as an agent.
• Business Entity -✓✓ A business entity that acts as an insurance producer in any
manner (sells, solicits, negotiates, advertises, collects commission) must be
licensed in New Jersey.
• Limited lines authority -✓✓ This includes bail bonds, credit insurance, ticket
insurance, group mortgage coverage, legal insurance, self-storage and personal
property insurance, title insurance, and surplus lines insurance.
• Reinsurance -✓✓ Reinsurance is a contract under which an originating insurer,
called the ceding insurer, buys insurance for itself from another insurer called the
assuming insurer, with respect to part or all of the insurance of the originating
(ceding) insurer.
• Retrocession -✓✓ Retrocession (or retroceding) occurs when a reinsurer accepts
too many risks and has to reinsure some of those with another reinsurance
company.
• Controlled business -✓✓ Controlled business can be defined as policies written
on people that the licensed producer has direct influence over: including family,
employers, and/or any company to which the producer has stock control.
• Commissioner's authority on controlled business -✓✓ The Commissioner may
revoke a producer's license if it is found that the commissions earned on controlled
business during any 12-month period exceeds 50% of the producer's aggregate
commissions on all business written.
, • Licensing Process -✓✓ An applicant for a resident producer license in New
Jersey must be at least 18 years of age, has not committed any act that is ground
for denial, suspension, or revocation, meet the prelicensing education requirements
required by New Jersey law, have passed the state exam for the lines of authority
in which licensure is sought, and submit the application with fees.
• Prelicensing requirements for Life insurance -✓✓ The time requirements for
prelicensing education courses for Life insurance is 20 hours.
• Prelicensing requirements for Accident and health insurance -✓✓ The time
requirements for prelicensing education courses for Accident and health insurance
is 20 hours.
• License renewal -✓✓ As of January 1, 2007, producer licenses are renewable
every two years with fee, renewal application, and proof of completing continuing
education (CE).
• Nonresident producers -✓✓ A producer who holds a resident license in a
different state may apply for a nonresident license in New Jersey, as long as both
states have a reciprocal agreement.
• Temporary license -✓✓ A temporary license may be issued in cases where a
producer has become disabled or dies, requiring a replacement to service the
producer's business, and is valid for a maximum of 180 days.
• Continuing education requirements -✓✓ Resident producers must complete 24
hours of continuing education every 2 years to keep their license active, with 3
hours in ethics.
