New Jersey Life Producer Practice Exam

What must a licensee complete before the expiration of their license to avoid termination?

1. Business transactions

2. Continuing education credits

3. Policy fine-tuning

4. Client reviews

The correct answer is: Continuing education credits

To maintain an active insurance license and avoid termination, a licensee in New Jersey must complete continuing education credits before the expiration of their license. Continuing education is a critical requirement put in place by state regulators to ensure that producers stay informed about changes in legislation, industry practices, and evolving market conditions. By fulfilling this requirement, licensees demonstrate their commitment to professional development and adherence to the standards set forth by the state’s regulatory body. In New Jersey, the specific number of continuing education credits needed, and the topics covered, are governed by state regulations. Completing these credits not only helps the licensee maintain their license but also serves to enhance their knowledge and skills, ultimately benefiting their clients. While the other options listed may be relevant to the operational aspects of an insurance business, they do not directly pertain to the requirements for license renewal and continuation. Therefore, fulfilling the continuing education credit obligation is essential for keeping the license active and in good standing.