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State RegulationsNJ specificDifficulty 1/5

What is the term of a New Jersey insurance producer license, and what is the fee for a major line?

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Answer & full 3-part explanation (select an option above, or peek)

Why D is correct

A New Jersey producer license runs for a 2-year term, and the fee for a major line is $150 per 2-year term, under the fee schedule of the New Jersey Department of Banking and Insurance. The $75 figure is the limited-lines license fee for the same 2-year term, the $20 amount is the separate application fee, and $100 is the major-lines late-renewal fee — each a different payment in the licensing fee family governed by N.J.S.A. 17:22A-1 et seq.

Why the other options are wrong

  • A) The term is 2 years, not 1, and $20 is the application fee rather than the license fee.
  • B) The 2-year term is right, but $75 is the limited-lines fee; a major line costs $150 per term.
  • C) There is no 3-year term in New Jersey producer licensing, and $100 is the major-lines late-renewal fee, not the standard license fee.

Memory hook

Two years, one hundred fifty for a major line — seventy-five only for limited.

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