Producer Licensing
The Commissioner may issue a temporary work authority that allows an applicant for a license to
begin work when the person has submitted a licensing application and fee.
Producers may conduct business under the supervision of
and in the name of an employing producer.
A producer's license is valid for
two years.
The Commissioner may revoke a temporary license if the interests of insureds or the public are endangered.
A temporary license will terminate if the temporary licensee sells, assigns, or disposes of the insurance producer's business.
Certification of License Status
If requested, the Department will issue a certification showing the license status of a producer who is currently licensed or who has been licensed during the preceding four years. The certification will state:
also To qualify for a resident producer license, an applicant must
⦁ complete a prelicensing course of study; ⦁ pay the required licensing fees; and ⦁ pass the state examination for the lines of authority for which the application is made.
Types of Producer Licenses
⦁ life ⦁ accident and health or sickness ⦁ property ⦁ casualty ⦁ surplus lines ⦁ title
a temporary work authority expires
60 days after it has been issued.
Individuals applying for an accident and health or sickness license must complete 20 hours of prelicensing education covering:
⦁ general health insurance concepts ⦁ New Jersey law and practice regarding health insurance
A producer whose license has been suspended may reapply for a license by submitting an
application and an affidavit stating that the suspension period has been completed and all conditions for reinstatement have been met.
A producer must immediately return a
license that has been suspended or revoked to the Department.
A producer whose license has been revoked
may apply for reinstatement five years after the date of the order revoking the license.
If a producer's license is suspended, he or she may reapply for a producer license by
submitting an application and an affidavit stating that the suspension period has been completed and all conditions for reinstatement have been met.
A producer's license may be reinstated after it has been
surrendered during the same license period by submitting an application for reinstatement along with the processing fee.
To qualify for a resident producer license, an applicant must
⦁ be at least 18 years old; ⦁ not have committed any act that is grounds for license denial, suspension, or revocation;
An insurer can appoint any number of
producers to transact insurance business on its behalf.
as well An applicant can apply for an exemption from the prelicensing education requirements if the individual
⦁ has earned the professional designation of Certified Employee Benefits Specialist (CEBS); Chartered Financial Consultant (ChFC); Certified Insurance Counselor (CIC); Certified Financial Planner (CFP); Chartered Life Underwriter (CLU); Fellow, Life Management Institute (FLMI); or LUTC Fellow (LUTCF) (if applying for a life insurance license);
A producer whose license has been revoked may apply for reinstatement five years after the date of the order revoking the license. The producer must submit an application and an affidavit showing:
⦁ his or her employment history ⦁ the manner in which his or her insurance business was disposed of after the license was revoked ⦁ whether restitution was made as a result of the acts that led to license revocation
An applicant can apply for an exemption from the prelicensing education requirements if the individual
⦁ holds a producer, agent, broker, or solicitor license in another state that is current or has been expired for less than one year; ⦁ is a veteran of the U.S. armed forces and has completed an approved veteran's education course;
Business Entity An insurance agency may be licensed if it
⦁ pays the required licensing fees; and ⦁ appoints a producer to be responsible for the business's compliance with state insurance laws.
A license that is not renewed on time will
lapse.
A temporary insurance producer's license is valid for up
to 180 days.
License Maintenance and Duration
A business entity's initial license expires on May 31 after the license has been issued for at least 18 months. Thereafter, a license expires every two years on May 31.
Contractual Relationships Company and Producer
An insurer can appoint any number of producers it wants to transact insurance business on its behalf. To appoint a producer, the insurer must file a notice of appointment with the Department within 15 days of making the producer its agent or receiving the first insurance application from the producer. The insurer pays a fee for every appointment and for every appointment renewal.
Appointments must be renewed annually on May 1.
An insurer must use the online appointment renewal process available through the National Insurance Producer Registry.
Appointments must be renewed annually on
May 1.
A business entity's license must be renewed by
May 31 every two years.
Surplus Lines
To obtain a surplus lines license, a person must be licensed as a property and casualty producer. Surplus lines producers may only charge fees to originating brokers that have been approved by the Commissioner.
A producer may renew a lapsed license if he or she
applies for renewal within one year, pays a late renewal fee, completes the continuing education credits, and certifies whether he or she has transacted business as a producer during the unlicensed period.
A person whose license has been suspended or revoked may not
be a partner, officer, director, or owner of a business entity or be employed by an insurance producer.
Individuals applying for a life insurance or variable life or annuities producer license must
complete 20 hours of prelicensing education courses.
An applicant must also submit his or her
name, address, fingerprints, and written consent for a criminal history background check. The applicant must pay for the cost of the background check.
The officers, directors, partners, or owners of an insurance agency applying for a license must also submit their
names, addresses, fingerprints, and written consent for a criminal history background check. The officers, directors, partners, or owners must pay for the cost of the background check.
A person must be licensed as a property and casualty producer to
obtain a surplus lines license.
A producer in good standing who lives in another state can be licensed as a nonresident producer in New Jersey if
the person is licensed in his or her home state, submits an application, and pays the required fees.
A person or business must be licensed
transact insurance business in New Jersey.
A nonresident may be authorized to
transact only those lines of authority that the producer is authorized to transact in his or her home state.
Individuals applying for a life insurance or variable life or annuities producer license must complete 20 hours of prelicensing education covering:
⦁ general life insurance concepts ⦁ suitability ⦁ annuities ⦁ variable contracts ⦁ New Jersey law and practice regarding life insurance
A nonresident producer is deemed to have appointed the
A nonresident producer is deemed to have appointed the Commissioner as his or her agent to receive service of process in any legal matter in New Jersey.
License Term License Maintenance and Duration
A producer's initial license expires on the last day of the producer's birth month, at least 18 months from the date the license was issued. Thereafter, a producer's license expires on the last day of the month of the producer's birthday every two years.
Producer Licensing Requirements Pre-Licensing Requirements
Applicants for a resident producer's license (other than limited lines) must complete a prelicensing education program that covers:
Temporary Work Authority
The Commissioner may issue a temporary work authority that allows an applicant for a license to begin work when the person has submitted a licensing application and fee. A temporary work authority expires 60 days after it has been issued.
Applicants who are licensed in another state or who hold certain professional designations can
apply for an exemption from the prelicensing requirements.
To qualify for a resident producer's license, a person must be
at least 18 years old, complete a prelicensing course of study, submit an application, pass the license exam, pay the required fees, and not have committed any act that is grounds for denying, suspending, or revoking a license.
A nonresident business entity can also receive a license in New Jersey if
it is licensed and in good standing in its home state, submits an application, and pays the required fee.
Individuals applying for an accident and health or sickness license
must also complete 20 hours of prelicensing education covering general health insurance laws and New Jersey- specific health insurance laws.
also A person can obtain a temporary insurance producer's license that is valid for up to 180 days. No examination is required. A temporary license can be issued to:
⦁ a member or employee of an agency that is licensed as an insurance producer; ⦁ a person designated by a licensed producer who is entering active service in the armed forces; or ⦁ any person whose licensure the Commissioner believes will best serve the public interest.
An individual who applies for a resident producer license in New Jersey who was previously licensed for the same lines of authority in another state is not required to complete the prelicensing education or licensing examination. However, the person must
⦁ be currently licensed in good standing in his or her home state; or ⦁ submit an application within 90 days after canceling the previous license.
If a producer does not renew his or her license on time, the license will lapse. However, a lapsed license may still be renewed if a producer applies for renewal within one year and
⦁ provides proof of completing the continuing education requirements; ⦁ submits a certification stating whether he or she has transacted business as a producer during the unlicensed period and, if so, the number of policies written, renewed, or modified; and ⦁ pays a late renewal fee.
Nonresident Producer
A person who is not a resident of New Jersey may be licensed as an insurance producer in New Jersey if
also Revocation and Suspension of License
A producer must immediately return a license that has been suspended or revoked to the Department.
A temporary license will terminate if the temporary licensee
sells, assigns, or disposes of the insurance producer's business.
Cancelation and Reinstatement of License
A licensee may surrender a current producer license by returning it to the Department for cancelation at any time. The Department may refuse to accept a request for canceling a business entity's license unless all current officers or partners agree to the request.
Revocation and Suspension of License
As we learned earlier, the Commissioner may place on probation, suspend, revoke, or refuse to issue or renew a producer's license or may levy a civil penalty if the producer violates the insurance code, fails to pay state income tax, improperly withholds money, misrepresents the terms of an insurance contract, or is convicted of a felony, among other things.
also An applicant can apply for an exemption from the prelicensing education requirements if the individual
⦁ has completed insurance courses at a college that are equivalent to the prelicensing course requirements; ⦁ is a licensed attorney in New Jersey (if applying for a title insurance license only);
A business entity that is not organized or incorporated in New Jersey may receive a nonresident license in New Jersey if it
⦁ is licensed and in good standing in its home state; ⦁ submits an application and pays the required fee; and ⦁ submits a copy of the license application from its home state or an original Uniform Application.
To appoint a producer, an insurer must file a notice of appointment with the Department within
15 days of making the producer its agent or receiving the first insurance application from the producer.
also Temporary Work Authority
A nonresident licensee who moves to New Jersey and wants to become a resident producer must notify the Department regarding his or her change of address and contact information within 30 days. A nonresident must also notify the Department within 90 days after changing his or her status as a resident agent in another state and must submit an application and a set of fingerprints in order to become a resident producer.
Producer Replacing Disabled or Deceased Producer
A person can obtain a temporary insurance producer's license that is valid for up to 180 days. No examination is required. A temporary license can be issued to:
A nonresident producer who moves from one state to another must file a change of address within 30 days of moving.
A resident producer who moves from New Jersey to another state must also file a change of address within 30 days.
When an insurer terminates a producer's appointment, the insurer must notify the Commissioner within 15 days of the termination. The notice must state the date of cancelation and the reason for the termination.
If the producer was terminated for misconduct, the insurer must send an additional copy of the notice to the Department's Enforcement Unit. An insurer must make a good faith attempt to collect from producers all company brochures, solicitation, or other related materials following termination.
If the Commissioner does not renew or denies an application for
a producer license, he or she must give the person written notice stating the reason for the denial or nonrenewal.
A person who previously held a New Jersey insurance license, which was surrendered as a
condition of public employment, is also not required to complete the prelicensing education courses to reinstate the license, provided the person's employment was insurance-related and he or she submits an application within one year after terminating his or her public employment.
A person whose license has been revoked, suspended, canceled, or surrendered may not
continue to transact insurance after the date of license revocation, suspension, cancelation, or surrender.
Submitting a license to be canceled or allowing a license to expire does not
void or terminate any disciplinary proceedings against the licensee, nor does it prevent the Commissioner from imposing a penalty or ordering restitution.
and finally this too An applicant can apply for an exemption from the prelicensing education requirements if the individual
⦁ has earned the professional designation of Accredited Adviser in Insurance (AAI); Associate in Risk Management (ARM); Certified Insurance Counselor (CIC); or Chartered Property and Casualty Underwriter (CPCU) (if applying for property, casualty, or personal lines licenses).
License Renewal To continue a license, a producer must
⦁ renew the license by the last day of the producer's birth month; ⦁ satisfy the continuing education requirements; ⦁ submit a renewal application; and ⦁ pay the required fee.
Nonresident Business Entity
A business entity that is not organized or incorporated in New Jersey may receive a nonresident license in New Jersey if it
Applicants for a resident producer's license (other than limited lines) must complete a prelicensing education program that covers:
⦁ state regulatory jurisdiction ⦁ the Commissioner's powers and the methods of regulation ⦁ producer licensing ⦁ producer trade practices, standards of conduct, and ethics ⦁ doing business as a licensed producer ⦁ insurance fraud detection and prevention
If requested, the Department will issue a certification showing the license status of a producer who is currently licensed or who has been licensed during the preceding four years. The certification will state:
⦁ the licensee's name and date of birth ⦁ license reference number ⦁ the types of insurance for which the producer is authorized ⦁ whether any formal disciplinary action was taken against the producer during the previous four years
A person who is not a resident of New Jersey may be licensed as an insurance producer in New Jersey if
⦁ the person is a licensed producer in good standing in his or her home state; ⦁ the person applies for licensure and pays the required fees;
Producers may receive for a license for one or more of the following lines of authority:
⦁ variable life and variable annuity ⦁ credit ⦁ personal lines ⦁ limited lines (i.e., bail bonds, credit, ticket, travel, group mortgage cancelation, legal, self-storage personal property, and special nonresident limited lines) ⦁ other lines of insurance permitted by law
this too An applicant can apply for an exemption from the prelicensing education requirements if the individual
⦁ has earned the professional designation of Registered Health Underwriter (RHU); Certified Employee Benefits Specialist (CEBS); Registered Employee Benefits Consultant (REBC); or Health Insurance Associate (HIA) (if applying for an accident and health or sickness license); or
A person can obtain a temporary insurance producer's license that is valid for up to 180 days. No examination is required. A temporary license can be issued to:
⦁ the surviving spouse or court-appointed personal representative of a licensed producer who dies or is mentally or physically disabled, in order to sell the producer's insurance business or allow enough time for the producer (if merely disabled) to recover and return to the business, or to allow enough time to train people to run the producer's business;
also A producer whose license has been revoked may apply for reinstatement five years after the date of the order revoking the license. The producer must submit an application and an affidavit showing:
⦁ whether the applicant holds other business, professional, or occupational licenses in New Jersey or other states ⦁ whether any legal or administrative proceedings have been brought against a business in which the applicant is a 5 percent or more owner ⦁ the manner in which the applicant's reputation, character, trustworthiness, and competence have improved
An insurer must notify the Commissioner within
15 days after terminating a producer's appointment.
Types of Insurance Licenses Producer
To sell, solicit, or negotiate insurance in New Jersey, a person or business must have an insurance producer's license for that line of authority.
License Refusal and Termination Denial of License
If the Commissioner does not renew or denies an application for a producer license, he or she must give written notice to the applicant or licensee stating the reason for the denial or nonrenewal. The individual may request a hearing to determine the reasonableness of the Commissioner's action.
Denial of License
If the Department receives a request for a hearing, it must review the records, application, and other documents to determine whether the license should be issued.
also A person who is not a resident of New Jersey may be licensed as an insurance producer in New Jersey if
⦁ the person provides the Commissioner with a copy of the license application from his or her home state or an original Uniform Application; and ⦁ the person's home state grants nonresident producer licenses to New Jersey on the same basis.