New Jersey Life and Health Updated Actual
Question and Answer (2026/2027) | Final
Review
• Commissioner hearing notice requirement -✓✓ At least 10 days' notice delivered
by registered or certified mail.
• NJ insurance code violation penalties -✓✓ Up to $5,000 for the first violation; up
to $10,000 for subsequent violations.
• Insurance Consultant -✓✓ A licensed person who offers policy advice for a fee.
• Requirement for consultant to charge non-commission fees -✓✓ Must obtain a
signed written memorandum from the prospect first.
• Insurance Broker -✓✓ A producer who represents the insured for a fee.
• Reinsurance -✓✓ Contract where a ceding insurer buys insurance from an
assuming insurer.
• Retrocession -✓✓ When a reinsurer reinsures its accepted risks with another
reinsurer.
• Controlled Business -✓✓ Policies written on the producer's family, employers, or
owned companies.
,• Controlled business commission limit -✓✓ Cannot exceed 50% of aggregate
commissions in any 12-month period.
• Domestic vs. Foreign vs. Alien Insurer -✓✓ Domestic is in-state; Foreign is
another state; Alien is another country.
• Stock Insurance Company -✓✓ Owned by stockholders; issues nonparticipating
policies.
• Mutual Insurance Company -✓✓ Owned by policyowners; issues participating
policies.
• Mixed Plan -✓✓ A stock insurer that issues both participating and
nonparticipating policies.
• NJ Resident Producer age requirement -✓✓ Must be at least 18 years of age.
• Prelicensing education hour requirements -✓✓ 20 hours per line of authority
(Life, Health, Property, Casualty).
• Prelicensing course validity period -✓✓ Must be completed no more than 2 years
before filing application.
• Time limit to apply for license after passing exam -✓✓ Within 12 months of
passing.
• Temporary License maximum duration -✓✓ Valid for a maximum of 180 days.
, • Temporary Work Authority expiration -✓✓ Expires after 60 days.
• Producer license renewal frequency -✓✓ Every two years on the last day of the
birth month.
• Continuing Education (CE) requirements -✓✓ 24 hours every 2 years, including
3 hours of ethics.
• Timeframe to reinstate a lapsed license -✓✓ Within one year of the suspension
date.
• Notice of Agency Contract filing deadline -✓✓ Within 15 days of entering the
contract.
• Reporting window for address or name changes -✓✓ Within 30 days of the
change.
• Reporting window for administrative actions or felonies -✓✓ Within 30 days of
the occurrence.
• Producer record-keeping requirement -✓✓ Must maintain transaction records for
5 years.
• Branch office registration deadline -✓✓ Within 30 days before business is first
conducted there.
Question and Answer (2026/2027) | Final
Review
• Commissioner hearing notice requirement -✓✓ At least 10 days' notice delivered
by registered or certified mail.
• NJ insurance code violation penalties -✓✓ Up to $5,000 for the first violation; up
to $10,000 for subsequent violations.
• Insurance Consultant -✓✓ A licensed person who offers policy advice for a fee.
• Requirement for consultant to charge non-commission fees -✓✓ Must obtain a
signed written memorandum from the prospect first.
• Insurance Broker -✓✓ A producer who represents the insured for a fee.
• Reinsurance -✓✓ Contract where a ceding insurer buys insurance from an
assuming insurer.
• Retrocession -✓✓ When a reinsurer reinsures its accepted risks with another
reinsurer.
• Controlled Business -✓✓ Policies written on the producer's family, employers, or
owned companies.
,• Controlled business commission limit -✓✓ Cannot exceed 50% of aggregate
commissions in any 12-month period.
• Domestic vs. Foreign vs. Alien Insurer -✓✓ Domestic is in-state; Foreign is
another state; Alien is another country.
• Stock Insurance Company -✓✓ Owned by stockholders; issues nonparticipating
policies.
• Mutual Insurance Company -✓✓ Owned by policyowners; issues participating
policies.
• Mixed Plan -✓✓ A stock insurer that issues both participating and
nonparticipating policies.
• NJ Resident Producer age requirement -✓✓ Must be at least 18 years of age.
• Prelicensing education hour requirements -✓✓ 20 hours per line of authority
(Life, Health, Property, Casualty).
• Prelicensing course validity period -✓✓ Must be completed no more than 2 years
before filing application.
• Time limit to apply for license after passing exam -✓✓ Within 12 months of
passing.
• Temporary License maximum duration -✓✓ Valid for a maximum of 180 days.
, • Temporary Work Authority expiration -✓✓ Expires after 60 days.
• Producer license renewal frequency -✓✓ Every two years on the last day of the
birth month.
• Continuing Education (CE) requirements -✓✓ 24 hours every 2 years, including
3 hours of ethics.
• Timeframe to reinstate a lapsed license -✓✓ Within one year of the suspension
date.
• Notice of Agency Contract filing deadline -✓✓ Within 15 days of entering the
contract.
• Reporting window for address or name changes -✓✓ Within 30 days of the
change.
• Reporting window for administrative actions or felonies -✓✓ Within 30 days of
the occurrence.
• Producer record-keeping requirement -✓✓ Must maintain transaction records for
5 years.
• Branch office registration deadline -✓✓ Within 30 days before business is first
conducted there.
