New Jersey Property & Casualty Insurance License Exam Overview
The New Jersey Property & Casualty Insurance License Exam is administered by Prometric on behalf of the New Jersey Department of Banking and Insurance (DOBI). New Jersey is the eleventh-largest state by population and the most densely populated, with unique auto insurance requirements that create a complex but rewarding market.
Passing this exam qualifies you to sell property insurance, auto insurance, liability coverage, and related products throughout New Jersey—a state with over 9 million residents and one of the most regulated insurance markets in the nation.
Exam Format at a Glance
| Component | Details |
|---|---|
| Total Questions | 150 multiple-choice |
| Scored Questions | 150 |
| Time Limit | 2.5 hours |
| Passing Score | 70% (105 correct answers) |
| Testing Vendor | Prometric |
| Exam Fee | $50 |
| Pre-licensing Education | 40 hours required |
Why Get P&C Licensed in New Jersey?
- Dense population — Over 9 million in a small area
- High insurance demand — Everyone needs coverage
- Complex auto system — Expertise creates competitive advantage
- Proximity to NYC — Access to metro business
- Competitive compensation — Average P&C agent salary over $68,000
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Key Topics Covered on the Exam
1. Property Insurance (30%)
Homeowners Insurance:
- HO-2, HO-3, HO-4, HO-5, HO-6, HO-8 policy forms
- Coverage A (Dwelling), B (Other Structures), C (Personal Property)
- Coverage D (Loss of Use), E (Personal Liability)
- Dwelling fire policies
New Jersey-Specific Property Topics:
- NJ FAIR Plan (residual market)
- Coastal wind coverage (NJIUA)
- Flood insurance requirements (Shore area)
- Hurricane deductibles
Commercial Property:
- Building and personal property coverage forms
- Business income coverage
- Equipment breakdown
- Inland marine coverage
2. Liability Insurance (25%)
Personal Liability:
- Homeowners liability (Coverage E)
- Personal umbrella policies
- Medical payments coverage
Commercial Liability:
- Commercial General Liability (CGL)
- Products and completed operations
- Professional liability (E&O)
- Workers' compensation requirements
New Jersey Workers' Compensation:
- Required for all employers
- Competitive state (private market)
- Division of Workers' Compensation oversight
- Self-insurance options
3. Auto Insurance (30%)
New Jersey Auto Policy Types:
| Policy Type | Description |
|---|---|
| Basic Policy | Low-cost, limited coverage, no third-party lawsuit rights |
| Standard Policy | Full tort or verbal threshold options |
| Special Policy | State-subsidized for eligible low-income drivers |
New Jersey Auto Insurance Requirements:
| Coverage | Minimum Limit |
|---|---|
| Bodily Injury (per person) | $15,000 |
| Bodily Injury (per accident) | $30,000 |
| Property Damage | $5,000 |
| PIP (Personal Injury Protection) | $15,000 |
Additional Auto Topics:
- Verbal threshold vs. no threshold option
- Personal Auto Policy (PAP) coverage parts
- New Jersey financial responsibility law
- Uninsured motorist coverage
- Commercial auto insurance
4. New Jersey Insurance Code and Regulations (10%)
N.J.S.A. Title 17 Key Provisions:
- Producer licensing requirements
- Unfair trade practices
- Unfair claims settlement practices
- Policy cancellation and nonrenewal rules
- Advertising guidelines
Licensing Requirements:
- Pre-licensing education: 40 hours
- Continuing education: 24 hours every 2 years
- Ethics requirement: 3 hours included in CE
- Background check and fingerprinting required
5. Ethics and Professional Conduct (5%)
- Fiduciary duties to insureds
- Premium handling requirements
- Claims reporting obligations
- Privacy and confidentiality
Study Timeline for Success
| Week | Focus Area | Hours |
|---|---|---|
| Week 1-2 | Property insurance fundamentals | 10-12 |
| Week 2-3 | Auto insurance and policy types | 14-16 |
| Week 3-4 | Liability and workers' compensation | 10-12 |
| Week 4-5 | NJ regulations (N.J.S.A. Title 17) | 6-8 |
| Week 5-6 | Practice exams and review | 12-14 |
Total recommended study time: 55-65 hours
🎯 Free Practice Questions Available
Test your knowledge with hundreds of free practice questions designed specifically for the New Jersey P&C exam.
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New Jersey-Specific Exam Tips
1. Know New Jersey Auto Minimums
New Jersey requires 15/30/5 liability plus PIP:
- $15,000 per person bodily injury
- $30,000 per accident bodily injury
- $5,000 property damage
- $15,000 PIP (mandatory)
2. Master the Three Policy Types
New Jersey's unique auto policy system:
- Basic Policy — Low cost, limited protection, no lawsuit rights
- Standard Policy — Full coverage with tort options
- Special Policy — State-subsidized for qualifying drivers
3. Understand Verbal Threshold
Standard Policy tort options:
- Verbal Threshold — Can only sue for serious injuries (defined in law)
- No Threshold — Full lawsuit rights, higher premiums
4. Key Numbers to Remember
| Topic | New Jersey Requirement |
|---|---|
| Auto minimums | 15/30/5 + $15K PIP |
| WC threshold | All employers |
| Pre-licensing | 40 hours |
| CE requirement | 24 hours/2 years |
| Passing score | 70% |
Common Mistakes to Avoid
- Confusing policy types — Know Basic vs. Standard vs. Special
- Forgetting PIP — $15,000 PIP is mandatory in NJ
- Skipping verbal threshold — Critical NJ concept
- Underestimating complexity — NJ auto is heavily tested
- Not practicing timed exams — 2.5 hours for 150 questions
- Cramming last minute — Spread study over 5-6 weeks
After Passing Your Exam
- Apply for license through NJ DOBI online portal
- Complete fingerprinting — Required for all applicants
- Pay license fee — $80 for 2-year resident license
- Affiliate with insurer — Get appointed by carrier
- Maintain CE compliance — 24 hours every 2 years
- Begin selling — Your license is valid for 2 years
2026 New Jersey Updates
For 2026, be aware of:
- Auto insurance rate changes
- Coastal coverage updates
- Enhanced consumer protection regulations
- Modified CE requirements
Start Your New Jersey P&C Insurance Career Today
The New Jersey P&C license opens doors to one of the nation's most lucrative insurance markets. With proper preparation, you can pass the exam on your first attempt.
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Our free study materials include:
- ✅ Complete topic coverage
- ✅ Practice questions with explanations
- ✅ New Jersey-specific regulations (N.J.S.A. Title 17)
- ✅ Study guides and summaries
- ✅ AI-powered study assistance
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