New Jersey Life & Health Insurance Producer Exam — Complete Study Guide (2026)

Everything in the preceding national chapters is tested the same way in every state. What follows is the material tested only in New Jersey, and it is where most repeat test-takers lose their points.

A note on numbers first. New Jersey's rules are stable: the state has a guaranty association, a replacement regulation, unfair trade practices statutes, and a best-interest standard for annuities. Those facts do not move, and this chapter states them flatly. What moves is the arithmetic — credit hours, fees, day counts, dollar caps. Every such figure is marked. The authority is the New Jersey Department of Banking and Insurance (DOBI), and "verify current with the New Jersey Department of Banking and Insurance" means exactly that.

1. The New Jersey Department of Banking and Insurance

1.1 Structure and the Commissioner

New Jersey has no stand-alone insurance department. Banking and insurance regulation are combined in one cabinet-level agency, the New Jersey Department of Banking and Insurance, in Trenton. Insurance is regulated through its Division of Insurance, which handles producer licensing, continuing education, and enforcement.

The Department is headed by the Commissioner of Banking and Insurance, appointed by the Governor with the advice and consent of the Senate. On the exam, "the Commissioner" always means this officer. New Jersey questions sometimes use "Director" loosely for the head of a division inside the Department; the person with statutory authority over insurers and producers is the Commissioner.

1.2 Powers of the Commissioner

Drawn from Title 17 and Title 17B, including the general grants at N.J.S.A. 17:1-8.1 and 17:1-15:

• Rulemaking. Regulations are codified in N.J.A.C. Title 11 — Chapters 2, 4, 16, 17, 17A, 17B, and 17C carry nearly every producer rule you will study.
• Licensing. Issue, renew, deny, suspend, revoke, and place on probation producer licenses.
• Examination. Examine the affairs, transactions, accounts, and records of insurers and licensed producers; a producer's books must be produced on request.
• Investigation and hearings. Investigate violations, issue subpoenas, compel testimony and documents, hold contested-case hearings, and issue orders (published as Orders to Show Cause and final orders).
• Cease and desist and penalties. Order a person to stop a prohibited practice; levy civil penalties; order restitution and reimbursement of investigation costs.
• Form authority. Individual life, annuity, and health forms must meet DOBI standards before delivery or issuance for delivery in New Jersey.
• Approval of CE courses and providers, and administration of the licensing examination through a contracted vendor.

Exam tip. New Jersey often asks what the Commissioner may do in addition to revoking a license. The answer includes a civil penalty — the Producer Licensing Act lets the Commissioner levy a fine instead of, or in addition to, suspension or revocation. Penalty amounts are statutory and have been amended; verify current amounts with the New Jersey Department of Banking and Insurance.

1.3 Insurance fraud

New Jersey treats fraud as a separate enforcement track under the New Jersey Insurance Fraud Prevention Act, N.J.S.A. 17:33A-1 et seq., which creates civil liability and civil penalties for false or misleading statements made in connection with an application or claim and allows recovery of attorneys' fees and costs. Criminal insurance fraud is prosecuted by the Office of the Insurance Fraud Prosecutor, in the Division of Criminal Justice under the Attorney General — not by DOBI. New Jersey also requires fraud-warning language on applications and claim forms. Knowingly assisting a false application or claim is both a fraud violation and an independent ground for license discipline.

2. Producer Licensing

2.1 Governing law

Licensing is governed by the New Jersey Insurance Producer Licensing Act of 2001, N.J.S.A. 17:22A-26 et seq. (P.L. 2001, c. 210), implemented by N.J.A.C. 11:17 (licensing), 11:17A (marketing conduct), 11:17B (commissions), and 11:17C (management of funds). The 2001 Act replaced "agent" and "broker" with the single term insurance producer and conformed New Jersey to the NAIC Producer Licensing Model Act.

Licenses are issued by line of authority; here, Life and Accident and Health (or Sickness). Variable life and variable annuities require the life line plus the applicable federal/FINRA securities registration.

2.2 Who must be licensed

N.J.A.C. 11:17A-1.3 governs. A person who sells, solicits, or negotiates insurance in New Jersey must be licensed. Purely clerical employees who do not discuss coverage terms, do not advise on the merits of a policy, and are not paid based on sales volume are outside the requirement, as are officers and salaried employees performing only executive, administrative, or managerial duties without sales-based compensation.

2.3 Resident license requirements

1. Be at least 18 years old.
2. Be a New Jersey resident (business entities: organized or qualified to do business here).
3. Complete an approved pre-licensing education course for each line and obtain a certificate of completion. New Jersey does require PLE for life and health — it has not eliminated it. Hours per line, the combined Life + A&H total, and the course final-exam passing score are administrative; verify current with the New Jersey Department of Banking and Insurance.
4. Pass the New Jersey licensing examination for each line, delivered by DOBI's contracted testing vendor. Candidates must present the PLE certificate of completion or a DOBI-issued waiver to sit. Exam fees, retake rules, and score validity periods — verify current with the New Jersey Department of Banking and Insurance.
5. Submit a fingerprint-based criminal history record background check and pay the fee.
6. File the application through the electronic licensing system and pay the license fee. Fees change; verify current with the New Jersey Department of Banking and Insurance.
7. Not have committed any act that is a ground for denial under N.J.S.A. 17:22A-40.

A business entity may be licensed and must designate a licensed individual producer responsible for compliance. N.J.A.C. 11:17A-1.6 imposes a duty to have a licensed producer at each business location.

2.4 Appointment by insurers

New Jersey is an appointment state. A producer acting as an insurer's agent must be appointed, and the insurer files the appointment with the Commissioner.

• Appointment follows licensure. N.J.S.A. 17:22A-41 prohibits an insurer or producer from paying a commission, service fee, brokerage, or other valuable consideration to a person for selling, soliciting, or negotiating insurance in New Jersey if that person is required to be licensed and is not. Renewal or deferred commissions earned while properly licensed may still be paid.
• Termination must be reported. On cancellation of an agency contract, the insurer must file written notice with the Commissioner — the Producer Licensing Act sets this at 15 days. If the termination was for cause under N.J.S.A. 17:22A-40, the insurer must say so, and the statute grants immunity for information furnished in good faith. Verify the current day count and appointment/termination fees with the New Jersey Department of Banking and Insurance.

N.J.S.A. 17:22A-41.1 separately requires a producer to notify a purchaser of compensation the producer receives in connection with the placement of insurance, as DOBI prescribes.

2.5 Renewal and continuing education

Licenses run a biennial (two-year) term keyed to the licensee's birth month — the license expires at the end of the birth month every other year. CE must be completed before renewal.

The CE rule is N.J.A.C. 11:17-3.6. Learn its shape:

• A fixed number of approved credit hours per biennial term (24 as the rule is written).
• A professional ethics component inside that total (3 credits), one of which may be satisfied with a credit related to insurance fraud.
• A portion must be classroom or "classroom equivalent" — instructor and students interacting live, in person or by video-conference, in classroom format (12 credits).
• Carryover of excess credits into the next term is permitted, capped (12), allowed only once, and ethics credits may never be carried over.
• A course may not be taken twice for credit in the same term.
• An in-person credit hour requires at least 50 minutes of instruction; breaks do not count.
• Providers must submit courses to the Department for approval in advance.
• Attorneys licensed for title insurance only satisfy the requirement with a certificate of good standing.

All CE credit-hour figures, the carryover cap, and the renewal fee are amendable by rule; verify current with the New Jersey Department of Banking and Insurance.

Failure to complete CE or renew on time causes the license to expire. New Jersey allows reinstatement within a limited window, usually with added fees; beyond that window the producer must re-qualify as a new applicant, including examination. Verify the current reinstatement window and fees with the New Jersey Department of Banking and Insurance.

2.6 Temporary licenses

N.J.S.A. 17:22A-37 lets the Commissioner issue a temporary producer license without an examination for a period not to exceed 180 days where necessary to service an insurance business. Triggers: death of a licensed producer (issued to the surviving spouse, next of kin, personal representative, or an employee), disability, or entry into active military service. It is a caretaker device; the Commissioner may impose conditions and may revoke it if policyholders' interests are endangered.

2.7 Nonresident licensing

N.J.S.A. 17:22A-34 follows the reciprocity model. A producer licensed and in good standing as a resident of another state may receive a New Jersey nonresident license for the same lines without a New Jersey examination and without New Jersey pre-licensing education, on proper request and fee, where the home state reciprocates. A nonresident generally satisfies New Jersey CE by satisfying home-state CE. A nonresident must report a change of home state, and the New Jersey license is exposed if the home-state license lapses or is disciplined.

2.8 Grounds for denial, suspension, revocation, and penalty

N.J.S.A. 17:22A-40 is the most heavily tested New Jersey licensing statute. The Commissioner may place on probation, suspend, revoke, or refuse to issue or renew a license, or levy a civil penalty, for causes including:

1. Providing incorrect, misleading, incomplete, or materially untrue information in a license application.
2. Violating any insurance law, or any regulation, subpoena, or order of the Commissioner or another state's regulator.
3. Obtaining or attempting to obtain a license through misrepresentation or fraud.
4. Improperly withholding, misappropriating, or converting monies or properties received in the insurance business.
5. Intentionally misrepresenting the terms of an actual or proposed contract or application.
6. Conviction of a crime (New Jersey frames this as a crime of the fourth degree or higher, corresponding to what other states call a felony).
7. Admitting to or being found to have committed an insurance unfair trade practice or fraud.
8. Using fraudulent, coercive, or dishonest practices, or demonstrating incompetence, untrustworthiness, or financial irresponsibility, in New Jersey or elsewhere.
9. Having a producer license denied, suspended, or revoked in another state, province, district, or territory.
10. Forging another's name on an application or insurance document.
11. Cheating on, or improperly using material in, a licensing examination.
12. Knowingly accepting insurance business from an unlicensed person.
13. Failing to comply with a child support order, or failing to pay state income tax or comply with a related tax obligation.

Reporting duties. A producer must report to the Commissioner any administrative action by another jurisdiction or another New Jersey governmental agency within 30 days of final disposition, and any criminal prosecution in any jurisdiction within 30 days of the initial pretrial hearing date. Producers must also report changes of address and legal name. Verify current reporting and address-change windows with the New Jersey Department of Banking and Insurance.

3. Marketing and Sales Conduct

3.1 Two trade practices statutes

New Jersey has two, and the exam expects you to know the life-and-health one exists in its own right:

• N.J.S.A. 17B:30-1 et seq. — trade practices provisions of Title 17B, applying to life insurance, health insurance, and annuities. This is the chapter the replacement regulation points to when it declares a replacement violation to be a violation of N.J.S.A. 17B:30-6.
• N.J.S.A. 17:29B-1 et seq. — the general Unfair Trade Practices Act, with the enumerated definitions at N.J.S.A. 17:29B-4.

New Jersey prohibits every one of the classic practices: misrepresentation and false advertising (policy terms, benefits, dividends, surplus share; an insurer's financial condition; a policy name or title misrepresenting its true nature); false information and advertising generally; defamation (false, maliciously critical, or derogatory statements calculated to injure a person in the insurance business); boycott, coercion, and intimidation restraining the business of insurance or tending to monopoly; false financial statements; unfair discrimination between individuals of the same class and equal expectation of life in life/annuity rates, dividends, or benefits, or of the same class and essentially the same hazard in accident and health; rebating; and twisting/churning.

3.2 Rebating and inducements — N.J.A.C. 11:17A-2.3

New Jersey's rebating rule is unusually detailed and a favorite exam target:

• No producer shall offer, make, or give — directly or indirectly — any inducement to purchase insurance other than that plainly expressed in the insurance contract.
• No producer shall offer, pay, or give any rebate of premium other than that plainly expressed in the contract or provided for in an approved filed rating system.
• No producer shall give anything of value in return for a person's agreement not to purchase insurance from another producer or insurer.
• No producer shall give anything of value as compensation for being unable to offer a comparable or better program at less cost.
• The section applies whether or not a contract of insurance is ultimately effected — the offer alone is the violation.

One fenced exception: a charitable contribution (to an IRS-qualified organization, a nonprofit, or a governmental entity) conditioned on a consumer's agreement to purchase is permitted only if the insurer/producer gains no pecuniary benefit beyond the income tax benefit, no tax benefit passes to the consumer, the consumer neither receives the contribution nor has any direct or indirect interest in the recipient, premium and commission are unaltered, and records of all such offers and contributions are maintained. Title insurance is excluded from the exception.

N.J.A.C. 11:17A-2.4 adds the trap: to determine the value of an item, the producer must retain the original invoice for the required retention period, and the Commissioner (or designee) determines the value of any favor, advantage, or consideration. You do not get to declare your own giveaway de minimis. Retention period — 5 years under N.J.A.C. 11:17C-2.6 as written; verify current with the New Jersey Department of Banking and Insurance.

3.3 Twisting — N.J.A.C. 11:17A-2.8

No insurance producer shall make any misleading representations or incomplete or fraudulent comparison of any insurance policies or annuity contracts or insurers for the purpose of inducing, or tending to induce, any person to lapse, forfeit, surrender, terminate, retain, or convert any insurance policy or annuity contract, or to take out a policy of insurance or annuity contract with another insurer.

Three details: it covers annuity contracts, not just life; it reaches inducements to retain a policy (a misleading comparison that keeps a client in an inferior policy is still twisting); and "tending to induce" means the state need not prove the client acted.

Churning — replacing a policy with another from the same insurer or an affiliate, using the existing policy's values to generate a new commission — is reached through the same misrepresentation prohibitions and through the replacement rule's treatment of financed purchases (Section 4).

3.4 Coercion, tie-ins, and unfair discrimination

N.J.A.C. 11:17A-2.5 prohibits tie-ins and coercion. Its core targets financial institutions licensed as producers: a lender may not condition a loan, credit extension, or renewal on buying insurance through a particular insurer or producer; may not impose a separate charge for handling required insurance or substituting one insurer for another; and must accept the borrower's chosen policy unless there is a reasonable, uniformly applied basis for disapproval — with a written statement of reasons if rejected. The rule prescribes a written disclosure notice in at least 10-point type telling borrowers of their right to obtain required insurance from a source independent of the financial institution, given when the issue of insurance first arises and retained.

The rule binds every producer too: no producer may lead a person to believe their creditworthiness or an extension of credit depends on buying insurance through a particular producer or insurer, and no producer may require an applicant, policyholder, or family member to buy a collateral policy as a condition of securing or renewing a policy.

N.J.A.C. 11:17A-2.7 prohibits refusing to take an application based in whole or part on race, color, creed, religion, sex, marital status, or physical impairment, or for any arbitrary, capricious, or unfairly discriminatory reason, or any reason contrary to federal or state law. Narrow carve-out: a producer with contractual underwriting authority may decline under established, legally permissible written underwriting guidelines.

3.5 Identification, advertising, and field duties

N.J.A.C. 11:17A-2.6 requires a producer, before commencing a solicitation, to state (1) their name as it appears on the license, (2) the name of the insurer, if known, or the producer represented, and (3) the nature of the relationship between them. The producer must keep the license at the business address on file with the Department and display it to an insured or prospective insured on request.

Other marketing-chapter duties: witness the insured's signature where required (11:17A-4.2); confirm underwriting information (-4.3); observe restrictions on disclosure of personal or privileged information (-4.5); deliver policies (-4.6) and give receipts for materials (-4.7); reply to inquiries by the Commissioner (-4.8); and handle funds in a fiduciary capacity (-4.10). Life insurance solicitation is separately regulated at N.J.A.C. 11:4-11, requiring delivery of a buyer's guide and policy summary; the replacement forms were revised to be consistent with it.

3.6 Commissions and sharing

Commission conduct is regulated at N.J.A.C. 11:17B, on the principle already stated in N.J.S.A. 17:22A-41: commissions may be paid only to persons properly licensed for the lines involved. A producer may share commission with another producer licensed for that line; sharing with an unlicensed person, or paying a finder's/referral fee to an unlicensed person for selling, soliciting, or negotiating, is prohibited. Do not assume a referral fee is safe because "the person didn't quote anything."