Requirements for Insurance Licensing in NJ

insurance and financial agent

NJ Requirements for Insurance Licensing

First things first, when applying for your insurance license it’s important to have a plan. Do you know what kind of agent you are going to be? If the answer is no…ask yourself these questions: (1) What type of insurance am I going to sell? (2) Am I starting my own agency or working inside of an existing agency? (3) What types of licenses does my company require me to hold?

Once you have all the information you need, it’s time for the first step in getting a New Jersey Insurance license.

Step 1: Pre-License Education

The first step is taking pre-license education courses. These pre-license education courses are state required courses pertaining to the subject matter that will be on the license exam. You are required to complete twenty (20) hours of education coursework per line of authority that you wish to hold. Once you have completed the course, you will receive a certificate. You must keep this certificate, as you will need it when taking your exam. The pre-license education courses are available online and in-person. You should choose a format that best works for you and your preferred method of learning. The main goal is to prepare you to pass your license exam on the first attempt.

Step 2: Insurance License Exams

After completing all of your pre-license coursework is to take the insurance exam. You will take one exam for each line of insurance you wish to carry. Once you have completed your pre-license education course, you have a time-frame of one year to pass your exams. The fee for each attempt of the exams is $47. When you show up you are required to have a photo ID and the original pre-license education certificate. Keep in mind that this is a proctored test, so you will be in a controlled environment with one person watching you.

Step 3: Fingerprinting

All insurance license applicants need to provide fingerprints prior to licensing. Giving your fingerprints will initiate a background check. The fee for having fingerprints taken is $62.66. At the time of your appointment, you must also bring with you a completed New Jersey Universal Fingerprint form. Keep in mind that if you have any prior misdemeanors or felonies, this may affect the outcome of your licensing efforts.

Step 4: License Application

Now that you have completed your exams and fingerprinting, it’s time to apply for your license. You must apply for each line of authority that you have passed the exam for. The fee for the initial online application is $170, plus a small NIPR fee. This will cover all the lines you wish to apply for. If in the future you wish to add a line to your license, the fee is $20, plus the NIPR fee. You can fill out your online application on the NIPR New Jersey website.

Step 5: Application Review

Once you have filled all the requirements and have submitted your application, your license application and background check will be reviewed by the state. As soon as you are accepted your license should be issued within 48 hours. If there are any outstanding issues, this may slow down the process. The state may then contact you to provide context to the issues that they have run into. If you have gotten the department all that they need, you should receive another email after the 48 hours confirming the acceptance of your license. After you have received the acceptance email, you can print your license within 24-48 hours, using the New Jersey Department of Banking and Insurance Licensee Search Tool.