New Jersey Property & Casualty Insurance License Exams Overview
The New Jersey Property and Casualty producer exams are administered by PSI Services under contract with the New Jersey Department of Banking and Insurance (DOBI). A critical point most guides get wrong: New Jersey treats Property and Casualty as two separate lines of authority with two separate exams. There is no single combined P&C test. If you want to sell both homeowners and auto/liability coverage, you sit for the Property Producer exam (79 scored questions) and the Casualty Producer exam (91 scored questions) as distinct sittings, each with its own $38 fee.
Passing these exams qualifies you to sell property, auto, liability, and related coverage throughout New Jersey, the most densely populated state in the nation and home to one of the most heavily regulated auto insurance markets in the country.
Exam Format at a Glance
| Component | Property Producer | Casualty Producer |
|---|---|---|
| Scored Questions | 79 | 91 |
| Question Type | 4-option multiple choice | 4-option multiple choice |
| Time Limit | 3.5 hours (210 min) | 3.5 hours (210 min) |
| Passing Score | 70% | 70% |
| Exam Fee | $38 per attempt | $38 per attempt |
| Testing Vendor | PSI Services | PSI Services |
Each exam also includes a handful of unscored experimental questions that do not count toward your score or your time. Your score appears on screen immediately, and a score report is emailed to you. Fail and the report includes a diagnostic breakdown by content area, so keep it.
Why Get P&C Licensed in New Jersey?
- Dense, high-demand market - Roughly 9 million residents in a small footprint who all need coverage
- Two licenses, two revenue streams - Holding both Property and Casualty broadens what you can write
- Complex auto system - New Jersey's tort and policy-type rules reward agents who truly understand them
- Proximity to NYC and Philadelphia - Access to dense metro commercial business
- Career mobility - A resident P&C license is the foundation for nonresident licenses in nearby states
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What Is Tested: National vs. New Jersey Content
Both PSI exams blend a national insurance section with a New Jersey state-law section. Treat them as two buckets and you will avoid the most common scoring mistakes.
Property Producer exam content
National property concepts:
- HO-2, HO-3, HO-4, HO-5, HO-6, and HO-8 homeowners forms
- Coverage A (Dwelling), B (Other Structures), C (Personal Property), D (Loss of Use)
- Dwelling fire policies (DP-1, DP-2, DP-3)
- Named-peril vs. open-peril coverage; replacement cost vs. actual cash value
- Commercial property: building and personal property form, business income, extra expense, equipment breakdown, inland marine, builder's risk
New Jersey property topics:
- NJ FAIR Plan (the residual market for hard-to-place property risk)
- NJ Insurance Underwriting Association (NJIUA) coastal/windstorm coverage
- Flood exposure along the Shore and the federal NFIP
- Cancellation, nonrenewal, and notice rules under NJ law
Casualty Producer exam content
National casualty/liability concepts:
- Negligence elements (duty, breach, causation, damages)
- Commercial General Liability (CGL): premises, products, completed operations
- Personal and commercial auto, personal umbrella, professional liability (E&O)
- Medical payments, uninsured/underinsured motorist concepts
New Jersey casualty topics:
- The three NJ auto policy types (Basic, Standard, Special)
- Tort options: verbal (limitation on lawsuit) threshold vs. unlimited right to sue
- New Jersey financial responsibility and compulsory insurance law
- New Jersey Workers' Compensation (required for nearly all employers, overseen by the Division of Workers' Compensation)
New Jersey Auto Insurance: 2026 Minimum Limits (Updated)
This is the single most-tested and most-outdated topic in old study guides. New Jersey phased in higher mandatory limits, and as of January 1, 2026, the Standard Policy minimums increased again.
| Coverage | Pre-2023 | 2023-2025 | 2026 (Current) |
|---|---|---|---|
| Bodily Injury (per person) | $15,000 | $25,000 | $35,000 |
| Bodily Injury (per accident) | $30,000 | $50,000 | $70,000 |
| Property Damage | $5,000 | $25,000 | $25,000 |
- PIP (Personal Injury Protection): $15,000 minimum is still mandatory on a Standard Policy (default $250,000 for certain injuries).
- UM/UIM: Uninsured and underinsured motorist limits track the liability minimums, so they also rose to 35/70/25 in 2026.
- The 2026 increase applies to the Standard Policy on new and renewal business; the Basic Policy is unaffected by the increase.
The three New Jersey auto policy types
| Policy Type | Description |
|---|---|
| Basic Policy | Low-cost option. $0 bodily injury liability by default ($10,000 single-limit available), $5,000 property damage, $15,000 PIP. Very limited protection. |
| Standard Policy | The full-feature policy most drivers buy. Carries the 2026 35/70/25 minimums and a choice of tort option. |
| Special Policy | A heavily subsidized, dollar-a-day-style policy for eligible Medicaid recipients; covers emergency PIP only, no liability. |
Tort options on the Standard Policy
- Limitation on Lawsuit (verbal threshold) - Lower premium; you may sue for pain and suffering only if you sustain one of the serious injuries defined by statute.
- No Limitation on Lawsuit (zero/unlimited threshold) - Higher premium; preserves the full right to sue for any injury.
Study Timeline for Success
Because Property and Casualty are separate exams, budget study time for each. Many candidates pass one, then schedule the other a week or two later.
| Week | Focus Area | Hours |
|---|---|---|
| Week 1-2 | Property insurance fundamentals + NJ property rules | 12-14 |
| Week 2-3 | Liability principles, CGL, workers' comp | 10-12 |
| Week 3-4 | NJ auto: policy types, 2026 limits, tort options | 12-14 |
| Week 4-5 | NJ law, unfair trade practices, producer conduct | 8-10 |
| Week 5-6 | Timed mixed practice exams and review | 12-14 |
Total recommended study time: 55-65 hours across both exams.
Free Practice Questions Available
Test your knowledge with hundreds of free practice questions designed specifically for the New Jersey Property and Casualty exams.
New Jersey-Specific Exam Tips
1. Memorize the 2026 auto minimums
The Standard Policy minimum is now 35/70/25 plus $15,000 PIP. If a practice question still shows 15/30/5 or 25/50/25, it is using old numbers; rely on the 2026 figures.
2. Master the three policy types
Know Basic vs. Standard vs. Special cold, including which one carries liability and which one is for eligible Medicaid recipients.
3. Use the correct tort terminology
New Jersey calls them the Limitation on Lawsuit option and the No Limitation on Lawsuit option. Older guides say "verbal threshold" vs. "no threshold," which describe the same choice.
4. Key numbers to remember
| Topic | New Jersey Requirement |
|---|---|
| Standard auto minimums (2026) | 35/70/25 + $15K PIP |
| Workers' comp | Required for nearly all employers |
| Pre-licensing | 40 hours total (20 per line, 3 hrs ethics) |
| Passing score | 70% |
| Exam fee | $38 per exam |
| License fee | $150 for 2 years |
Common Mistakes to Avoid
- Using outdated auto limits - The 2026 Standard Policy minimum is 35/70/25, not 15/30/5.
- Treating P&C as one exam - New Jersey gives separate Property and Casualty exams.
- Confusing policy types - Know Basic vs. Standard vs. Special.
- Forgetting PIP - $15,000 PIP is still mandatory on a Standard Policy.
- Not practicing timed exams - Each exam gives 3.5 hours; pace yourself.
- Cramming last minute - Spread study over 5-6 weeks.
After Passing Your Exam(s)
- Get fingerprinted - Schedule the State's Live Scan electronic fingerprinting before applying.
- Apply through NIPR or the DOBI online portal - Submit your application electronically with your PSI score report and education certificate.
- Pay the license fee - $150 for a 2-year resident producer license.
- Consider temporary work authority - Passing candidates may qualify at the test center for a temporary work authority valid 60 days, allowing supervised work while the permanent license processes.
- Get appointed - Affiliate with one or more carriers.
- Track renewal and CE - Maintain continuing education on the DOBI two-year cycle.
2026 New Jersey Updates
- Auto liability minimums rose to 35/70/25 on January 1, 2026 for Standard Policies, with UM/UIM tracking the new limits.
- Expect refreshed PSI content outlines and updated state-law items reflecting the higher limits.
- Coastal/windstorm and flood exposure remain heavily tested for Shore-area property.
Start Your New Jersey P&C Insurance Career Today
With proper preparation, you can pass both New Jersey exams on your first attempt.
Our free study materials include:
- Complete topic coverage for both Property and Casualty
- Practice questions with explanations
- New Jersey-specific rules, including the 2026 auto limits
- Study guides and summaries
- AI-powered study assistance
Don't pay for expensive prep courses when everything you need is available FREE.
How to Verify the Rules Before You Schedule
Use this guide for exam strategy, then confirm the current licensing steps with official sources before you pay for an appointment. Property and casualty licensing is state-administered, and administrative details can change even when the insurance concepts stay the same. Check the New Jersey insurance department first, then the testing vendor candidate handbook, then the application path used after passing. The NAIC state insurance department directory is the safest way to find the current regulator site, and NIPR state requirements can help you confirm post-exam application steps where NIPR is used.
For exam content, keep two buckets separate. The national bucket includes property policies, casualty policies, liability principles, negligence, risk management, policy structure, exclusions, conditions, endorsements, and claims concepts. The New Jersey bucket includes regulator authority, producer licensing, unfair practices, cancellation and nonrenewal rules, state auto requirements, residual market mechanisms, and local compliance duties. When a question includes a deadline, dollar limit, filing duty, required notice, or licensing step, ask whether it is a general insurance concept or a New Jersey rule.
What to Master for Property Questions
Property questions reward careful reading. Know the difference between named-peril and open-peril coverage, replacement cost and actual cash value, direct and indirect loss, vacancy and unoccupancy, and first-party property coverage versus third-party liability. Homeowners forms are a frequent source of points because the forms look similar but solve different problems. Practice identifying who is insured, what property is covered, which location qualifies as the residence premises, and whether the loss is excluded before an endorsement changes the answer.
Do not treat deductibles, limits, and valuation as afterthoughts. A question may describe a covered loss but test whether the settlement is reduced by deductible, limited by a sublimit, valued at actual cash value, or excluded because the cause of loss is not covered. Commercial property questions add business personal property, business income, extra expense, equipment breakdown, inland marine, and builder's risk concepts. For commercial forms, focus on why a business would need the coverage and what exposure remains if it does not have it.
What to Master for Casualty and Liability Questions
Casualty questions often turn on liability logic. Before choosing an answer, identify the claimant, the insured, the alleged injury or damage, and the legal theory. Negligence questions usually require duty, breach, causation, and damages. Liability policy questions ask whether the policy responds to bodily injury, property damage, personal and advertising injury, medical payments, or a specifically excluded exposure.
For auto, separate personal auto policy structure from state financial responsibility requirements. You need to know liability, medical payments or personal injury protection where relevant, uninsured and underinsured motorist concepts, damage to your auto, covered auto definitions, exclusions, and endorsements. For commercial auto, pay attention to covered auto symbols, hired and non-owned autos, business use, and garage exposures. For workers' compensation, separate statutory benefits from employer liability and remember that workers' compensation is not ordinary negligence coverage.
Final Two-Week Study Plan
In the first week, rotate by coverage family: homeowners and dwelling property, commercial property, personal auto, commercial auto, general liability, workers' compensation, and New Jersey law. After every practice set in /study-guides/nj-property-casualty, write down whether each miss was caused by vocabulary, form structure, state rule, or careless reading. Vocabulary misses need flashcards. Form structure misses need diagrams. State-rule misses need a one-page New Jersey checklist. Careless reading needs slower question markup.
In the second week, stop studying by chapter only. The actual exam mixes topics, so your practice should mix them too. Use timed sets and force yourself to decide quickly whether the question is asking about coverage trigger, excluded cause, valuation, limit, condition, producer conduct, or state filing rule. Review explanations immediately. The review is where your score improves; simply taking more questions without fixing the reason for misses mostly measures the same weakness again.
Common P&C Exam Traps
One trap is choosing the coverage that sounds familiar instead of the coverage that fits the loss. A flood loss, an employee injury, a professional advice claim, a business income interruption, and a personal auto collision may all involve money damages, but they do not belong in the same policy part. Another trap is ignoring who owns the property or who is legally liable. Property insurance usually protects the insured's financial interest in property; liability insurance responds to claims made by others against the insured.
Cancellation and nonrenewal questions also deserve attention. The exam may test required notice, permitted reasons, timing, or who has authority to act. If the question is state-specific, do not rely on a generic national rule. Unfair trade practice questions work the same way: rebating, twisting, misrepresentation, false advertising, unfair claims handling, and fiduciary misuse of premiums are tested because they show whether a producer can operate lawfully after the exam.
Exam-Day Workflow
Confirm your appointment, identification, remote-proctoring rules, allowed materials, and reschedule deadline before test day. At check-in, your legal name should match the exam registration. During the test, take the easy points first. If a scenario is long, identify the policy, the insured, the covered property or claimant, the cause of loss, and the question's command word. If two answers are legally true, choose the one that answers the exact fact pattern.
If you miss the passing score, use the report as a map. Rebuild the two weakest content areas, then retest with mixed questions. Candidates often improve fastest by mastering policy architecture: declarations, insuring agreement, conditions, exclusions, definitions, and endorsements. Once you can locate where a rule lives inside the policy, unfamiliar questions become easier to reason through.
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