How to Become a New Jersey Insurance Broker

| January 23, 2013

Candidates for New Jersey insurance producers license must follow the state provided procedure. Insurance producer is used interchangeably with agent/broker

Without a New Jersey producer’s license, individuals cannot conduct insurance transactions on behalf of an insurance company or represent an insured.

Types of New Jersey Insurance Licenses

Before venturing any further, applicants should decide what type of license they like to obtain. New Jersey offers licenses for property/casualty and life/health insurance producers. Unlike the state of Texas, New Jersey property/casualty brokers can engage in both commercial and personal lines insurance transactions. Therefore it is not necessary to choose one over the other.

After determining which type of license to get, New Jersey requires its applicants to take pre-licensing education courses. The number of hours varies depending upon the license sought. The New Jersey State Department of Banking and Insurance website lists the mandatory course hours by each line of authority. It is possible however to forgo pre-licensing education if the candidate has achieved certain insurance designations.

Pre-Licensing Education Waiver

As of this writing, applicants with the following designations per line of authority are eligible for the New Jersey pre-licensing education requirement waiver:

Life Insurance License:

  • Chartered Financial Consultant (ChFC)
  • Certified Employee Benefits Specialist (CEBS)
  • Certified Financial Planner (CFP)
  • Certified Insurance Counselor (CIC)
  • Chartered Life Underwriter (CLU)
  • Fellow, Life Management Institute (FLMI)
  • LUTC Fellow (LUTCF)

Accident/Health/Sickness:New Jersey Insurance License

  • Certified Employee Benefits Specialist (CEBS)
  • Health Insurance Associate (HIA)
  • Registered Employee Benefits Consultant (REBC)
  • Registered Health Underwriter (RHU)

Property Casualty:

  • Accredited Advisor in Insurance (AAI)
  • Associated in Risk Management (ARM)
  • Chartered Property & Casualty Underwriter (CPCU)
  • Certified Insurance Counselor (CIC)

To obtain the waiver, applicants must complete and submit the Insurance Education Waiver Application and submit it to the New Jersey Department of Banking and Insurance. The waiver is only valid for 90 days.

New Jersey Insurance Licensing Exam

After satisfying the pre-licensing education requirements (or submitting the waiver), candidates must schedule the licensing exam. New Jersey uses PSI exams on line to administer their state licensing exams. Candidates can schedule the exam through the PSI Exams (psiexams.com) website.

The exam results are automatically forwarded to this New Jersey Department of insurance. In the meanwhile, candidates who have passed the exam must schedule a criminal background check and fingerprinting. Both of these processes are handled through a company called Morpho Trak. They perform the criminal history background check and administer the fingerprinting process.

Criminal Background Check and Fingerprinting

The New Jersey Department of Banking and Insurance provides the necessary information for contacting Morpho Trak to schedule an appointment. After submitting to the background check and fingerprinting, candidates have one last step. They must complete the NAIC (National Association of Insurance Commissioners) Uniform Application for Individual Producer’s License/Registration. The five-page form has to be completed in its entirety and submitted to the New Jersey Department of Insurance.

As technology changes so does the process of applying for a New Jersey broker’s license. The state strongly encourages its candidates to use their online registration through NIPR.com (instead of mailing the NAIC form). Online registration process expedites the issuance of the license.

Licensing Fee Structure

There are fees associated with each step of the licensing process; from taking the pre-licensing courses, to background/fingerprinting to completing and filing the licensing application. Candidates should review the fee structure for each step prior to starting the application process.

Tags: , ,

Category: Insurance, Licensing, New Jersey

About the Author ()

Felicia A. Williams is a wife, mother, freelance writer and owner of Tidbits and Stuff.

Comments (2)

Trackback URL | Comments RSS Feed

  1. Alexis says:

    Where do I get the training?from a private institution or state school.? I know a license is required but one must get training first