PHIL MURPHY
Governor
SHEILA OLIVER
Lt. Governor
State of New Jersey
DEPARTMENT OF BANKING AND INSURANCE
OFFICE OF THE COMMISSIONER
PO BOX 325
TRENTON, NJ 08625-0325
TEL (609) 292-7272
MARLENE CARIDE
Commissioner
BULLETIN NO. 20-21
TO: ALL PRODUCERS AND INSURERS TRANSACTING BUSINESS IN NEW
JERSEY AND INTERESTED PARTIES
FROM: MARLENE CARIDE, COMMISSIONER
RE: TEMPORARY INSURANCE PRODUCER LICENSE
On March 9, 2020, Governor Phil Murphy declared a state of emergency and public health
emergency through the issuance of Exec. Order No. 103 (March 9, 2020) 52 N.J.R. 549(a) (April
6, 2020) (“EO 103”), to contain the spread of the Coronavirus (“COVID-19”) pandemic. Due to
the COVID-19 pandemic, all producer examination testing centers in New Jersey are currently
closed, resulting in the suspension of insurance producer licensing exams in the State. In order to
assure the continuity of vital insurance services and to address the disruption in insurance producer
licensing caused by the COVID-19 pandemic, the Department of Banking and Insurance
(“Department”) is issuing this bulletin to advise all producers and insurers transacting business in
New Jersey, as well as other interested parties, that pursuant to N.J.S.A. 17:22A-37(a)(4)
1
the
Department had determined that it is in the public interest to issue temporary producer licenses to
those qualifying individuals who wish to become New Jersey resident insurance producers. This
Bulletin establishes the process to apply for, and the criteria for the issuance of, a temporary
resident producer license. Temporary resident insurance producer licenses will only be issued
during the duration of the state of emergency and public health emergency declared pursuant to
EO 103.
1
N.J.S.A. 17:22A-37(a)(4) provides that the Commissioner of the Department of Banking and
Insurance (“Commissioner”) may issue a temporary insurance producer license for a period not to
exceed 180 days without requiring an examination if the Commissioner determines that the
temporary license is necessary for the servicing of an insurance business in any circumstance in
which the Commissioner determines that the public interest will best be served by the issuance of
the temporary insurance producer license.
2
The temporary licensing of individual resident insurance producers will be subject to the
following:
Qualifications of and Procedures for Applicants Requesting a Temporary Insurance
Producer License:
• The applicant for a temporary insurance producer license must be a New Jersey resident, a
citizen of the United States or possess a valid work authorization and be at least 18 years
of age.
• The applicant must not have committed any act that is a ground for denial, suspension or
revocation set forth in N.J.S.A. 17:22A-40.
• The applicant for a temporary insurance producer license must not have been licensed as
an insurance producer in New Jersey within the past thirty months.
• The applicant for a temporary insurance producer license must not have had an insurance
producer license revoked or suspended in any state including New Jersey.
• The applicant for a temporary insurance producer license must not have been previously
denied an insurance producer license in New Jersey.
• The applicant for a temporary insurance producer license must not have been convicted of
a felony level crime involving dishonesty or breach of trust or an offense under 18 U.S.C.
§ 1033, unless the applicant has obtained the written consent of the Commissioner.
• An insurance company holding an active certificate of authority in New Jersey must
sponsor (“sponsoring insurer”) the applicant for temporary licensure and assume
responsibility for all acts of the temporary licensee.
2
The applicant need not be an
employee of the insurance company but must be actively appointed to represent the
sponsoring insurer. The sponsoring insurer must be authorized to write the line(s) of
insurance for which the applicant is applying. The appointment will be in effect only as
long as the temporary license is valid.
• Temporary licensees will only be permitted to hold an appointment with one sponsoring
insurer.
• Pursuant to N.J.A.C. 11:17-3.4 and N.J.S.A. 17:22A-32(a)(3), an applicant for a temporary
insurance producer license must complete the approved line of authority pre-licensing
education course with a Department-approved provider prior to the issuance of a temporary
2
Pursuant to N.J.S.A. 17:22A-37(b), the Commissioner may require that the temporary licensee
have a suitable sponsor who is a licensed insurance producer or insurer and who assumes
responsibility for all acts of the temporary licensee and may impose other requirements designed
to protect insureds and the public.
3
license. Please be advised that while in-person, pre-licensing education may be suspended
in New Jersey during the state of emergency and public health emergency declared
pursuant to EO 103, online-based pre-licensing education is still available through
Department-approved providers. Proof of the completion of pre-licensing education must
be provided with the application for temporary licensure.
• An applicant for a temporary insurance producer license must complete the
fingerprinting/background check process set forth on the Department’s website at
https://www.nj.gov/dobi/insliced/livescan.htm. Applicants for a temporary insurance
producer license must complete the fingerprinting process prior to the sponsoring insurer
submitting an application for temporary licensure. A receipt from the Department’s
fingerprinting vendor, IDEMIA, which remains operational during the state of emergency,
must accompany the application for temporary licensure
Application Procedures and Timelines:
• The Department will begin accepting applications for a temporary insurance producer
license on the date that this Bulletin is issued.
• Temporary insurance producer licenses may only be applied for during the duration of the
state of emergency and public health emergency declared pursuant to EO 103. No
applications for temporary insurance producer licenses submitted after this state of
emergency and public health emergency is lifted will be reviewed by the Department.
• Only the sponsoring insurer is permitted to submit applications on behalf of applicants for
a temporary insurance producer license. Submission of the application for temporary
licensure by the sponsoring insurer will deem the applicant actively appointed to represent
the sponsoring insurer. The sponsoring insurer should not submit appointments of
temporary licensees on the National Insurance Producer Registry (“NIPR”), as set forth in
N.J.A.C. 11:17-2.10, as submission of appointments through NIPR for temporary
insurance producer licenses is not available. Additionally, the $35 fee for appointments,
as set forth in N.J.A.C. 11:17-2.13(a)(14), will not be required for the appointment of
temporary licensees.
• Applications for a temporary insurance producer license can be found on the Department’s
website at https://www.nj.gov/dobi/insliced/indprodinitialapp.pdf. This application is the
same application used for the Initial Individual Producer License and is titled “Uniform
Application for Individual Producer License/Registration.” Please note that applications
for temporary licensure are not permitted to be submitted electronically through the NIPR.
Sponsoring insurers must submit the paper application and any other requested
documentation, with a check for the application ($150) and processing fee ($40), as
discussed below, to the Department at
State of New Jersey-Department of Banking and Insurance
Producer Licensing Unit
PO Box 327
20 West State Street
Trenton, New Jersey 08625-0327.
4
• An application fee of $150 and application processing fee of $40 must accompany an
application for temporary licensure and should be made payable to “Treasurer, State of
New Jersey.”
• Should the application for temporary licensure be approved by the Department, sponsoring
insurers will receive a letter from the Department advising them of the approval. This letter
will be proof of the issuance of the temporary insurance producer license. No separate
license will be needed to prove temporary licensure.
• Provided the file is complete, please allow approximately 30 days for a determination
related to applications for temporary licensure. This timeline is only an estimate and may
be extended or shortened depending upon the complexities of the application review
process or delays in the processing of the application and background checks due to the
COVID-19 pandemic.
Terms and Conditions for Sponsoring Insurers and Temporary Producer Licensees:
• The temporary insurance producer license allows the temporary licensee to operate in New
Jersey as a resident temporary insurance producer. Temporary insurance producers are not
eligible for non-resident licenses in other states.
• Pursuant to N.J.S.A. 17:22A-37(a)(4), the temporary insurance producer license is valid
during the state of emergency and public health emergency declared by EO 103 and for 30
days thereafter or for 180 days from the date of issuance, whichever is sooner. This
temporary insurance producer license is nontransferable and cannot be renewed.
• Each temporary licensee shall have only one sponsoring insurer and appointment. As set
forth above, the sponsoring insurer must submit the application for temporary licensure on
behalf of the applicant and that submission will confirm the appointment of the applicant
to represent the sponsoring insurers.
• Pursuant to N.J.S.A. 17:22A-37(b), the Commissioner may order to revoke a temporary
license if the interests of the insureds or the public is endangered. Thus, any finding of a
violation of New Jersey insurance law or regulations may result in the immediate
revocation of the temporary insurance producer license.
• The sponsoring insurer must maintain a record of all licensees that have been provided a
temporary license. Such records should be made available to the Department upon request.
Sponsoring insurers are expected to assist the temporary licensee in taking appropriate
action to pass the licensing examination once testing centers are operational.
• Sponsoring insurers must notify the Department in writing if the temporary licensee is no
longer employed or under the direct supervision of the sponsoring insurer. The sponsoring
insurer must additionally disclose all details as to circumstances causing termination.
5
Procedures for Becoming Fully Licensed Insurance Producers after Issuance of a
Temporary Insurance Producer License:
• Temporary licensees are encouraged to take the appropriate producer licensing exam as
soon as practicable once testing centers are open.
• If a temporary licensee takes and passes the appropriate producer licensing exam prior to
the expiration of the temporary license, the Department will not require an additional
application and processing fee to become a fully-licensed resident insurance producer. The
Department will also not require that the temporary licensee complete additional
fingerprinting/background checks. There will be no extensions to, or exceptions made to
this requirement.
• Temporary licensees will need to timely inform the Department, via email to
licensing exam in order for the Department to process the temporary licensee’s full
insurance producer license.
• If a temporary licensee does not take and pass the appropriate producer licensing exam
prior to the expiration of the temporary license, the temporary licensee must immediately
stop engaging in the business of insurance when the temporary license expires. The
temporary licensee is permitted to take the appropriate producer licensing exam after the
expiration of the temporary license but will be required to submit an additional application
and processing fee and will be required to complete additional fingerprinting/background
checks.
• Please note that if an insurance producer obtains a temporary resident insurance producer
license in another state as a result of the COVID-19 pandemic, that temporary license is
not convertible to a full license as an insurance producer in New Jersey.
If you have any questions, please contact the Department’s Insurance Licensing Unit at
May 1, 2020
Date Marlene Caride
Commissioner
AV COVID-19 Temporary Producer License Bulletin/COVID-19
6
STATE OF NEW JERSEY
DEPARTMENT OF BANKING AND INSURANCE
NOTICE OF RULE MODIFICATION
PURSUANT TO EXECUTIVE ORDER NO. 103 (MURPHY)(MARCH 9, 2020)
COVID-19 STATE OF EMERGENCY
Temporary Rule Modification of N.J.A.C. 11:17-2.10 and N.J.A.C. 11:17-2.13 adopted by
Marlene Caride, Commissioner, Department of Banking and Insurance
Date: May 1, 2020
Authority: N.J.S.A. 17:22A-37; N.J.S.A. App.A:9-45 & App. A:9-47; Exec. Order No. 103
(March 9, 2020) 52 N.J.R. 549(a) (April 6, 2020) (“EO 103”)
Effective Date: May 1, 2020
Expiration Date: Concurrent with EO 103.
This is an emergency adoption of a temporary rule modification of the Department’s
Insurance rules at N.J.A.C. 11:17-2.10 and N.J.A.C. 11:17-2.13. Section 6 of EO 103, issued in
response to the COVID-19 pandemic, authorizes agency heads to waive/suspend/modify any
existing rule, where the enforcement of the rule would be detrimental to the public welfare during
the emergency, notwithstanding the provisions of the Administrative Procedure Act or any law to
the contrary. Pursuant to that authority, and with the approval of the Governor and in consultation
with the State Director of Emergency Management and the Commissioner of the Department of
Health, the Department of Banking and Insurance is modifying and/or suspending its rules as
follows:
Currently, the Department’s rules at N.J.A.C. 11:17-2.10(a) require that an agency
relationship between an insurer and producer be subject to specific requirements related to the
appointment of the producer to act on behalf of the insurer. Specifically, the rules require that the
insurer advise the Department of that relationship by filing a notice within 15 days after execution
of the contract or within 15 days after the first insurance application is submitted by the producer
through the use of the National Insurance Producer Registry (“NIPR”). The notification must
contain the company’s name and license reference number; the producer’s name and license
reference number; and the effective date of the contract. The rules additionally require that a fee
be paid for each appointment, as set forth in N.J.A.C. 11:17-2.13(a).
However, pursuant to N.J.S.A. 17:22A-37(a)(4), the Commissioner has determined that it
is necessary for servicing the insurance business in this State and in the public interest to permit
that temporary insurance producer licenses be issued during the state of emergency and public health
emergency as declared in EO 103 and for 30 days thereafter or for 180 days from the date of issuance,
whichever is sooner, without an examination. N.J.S.A. 17:22A-37(b) permits the Commissioner
to require that the temporary licensee have a suitable sponsor who is a licensed insurer and who
7
assumes responsibility for all acts of the temporary licensee (“sponsoring insurer”). As such, the
Commissioner has determined that an appointment is necessary to monitor activity of temporary
licensees. However, the NIPR does not have the capability to process temporary insurance
producer licenses or to accept appointments for such licenses as required by N.J.A.C. 11:17-
2.10(a). Therefore, it is necessary to modify the rules at N.J.A.C. 11:17-2.10(a) for the duration
of the state of emergency pursuant to EO 103 and for 30 days thereafter as follows: Only the
sponsoring insurer is permitted to submit applications on behalf of applicants for a temporary
insurance producer license. Submission of the application for temporary licensure by the
sponsoring insurer will deem the applicant actively appointed to represent the sponsoring insurer.
The sponsoring insurer should not submit appointments of temporary licensees on the NIPR as set
forth in N.J.A.C. 11:17-2.10(a), as submission of appointments through NIPR for temporary
insurance producer licenses is not available. Additionally, the fee for appointments, as set forth in
N.J.A.C. 11:17-2.13(a), will not be required for the appointment of temporary licensees. Finally,
the payment for temporary licensees, under N.J.A.C. 11:17-2.13(b), will only be accepted via
check.
Full Text of the proposed modifications follows (additions indicated in boldface thus;
deletions indicated in brackets [thus]):
11:17-2.10 Business Relationships
(a) The agency relationship between company and producer is subject to the following
requirements:
1. (No change.)
2. An insurance company contracting with a licensed insurance producer shall be
responsible to advise the Department of that relationship by filing a notice within 15 days after
execution of the contract or within 15 days after the first insurance application is submitted by the
producer, on a form prescribed by the Department or by using the online appointment and
termination system available through the National Insurance Producer Registry, incorporated
herein by reference, as amended and supplemented, located at http://www.nipr.com containing the
company's name and license reference number; the producer's name and license reference number;
and the effective date of the contract. The form shall contain the name and title of the company
official who signed and certified the notice. The fee set forth in N.J.A.C. 11:17-2.13 for each
appointment shall be collected from the insurer.
i. For insurance companies that wish to sponsor applicants for temporary
insurance producer licenses permitted by the Department as a result of the state of
emergency and public health emergency declared pursuant to Exec. Order No. 103 (March
9, 2020) 52 N.J.R. 549(a) (April 6, 2020), the sponsoring insurance company must submit
applications on behalf of applicants for a temporary insurance producer license. Submission
of the application for temporary licensure by the sponsoring insurance company will deem
the applicant actively appointed to represent the sponsoring insurance company. The
sponsoring insurer should not submit appointments of temporary licensees on the National
Insurance Producer Registry, as set forth in N.J.A.C. 11:17-2.10(a)(1) above, as submission
of appointments through the National Insurance Producer Registration for temporary
8
insurance producer licenses is not available. Sponsoring insurance companies are not
required to pay the fee for appointments in N.J.A.C. 11:17-2.13(a) for the appointment of
temporary licensees.
1. – 9. (No change.)
(b) (No change.)
11:17-2.13 Fees
(a) The following fees shall be payable as set forth in this chapter:
1. – 13. (no change)
14. Producer company appointment or termination fee, paper submission: $ 35.00. For
applicants for temporary insurance producer licenses permitted by the Department as a
result of the state of emergency and public health emergency declared pursuant to Exec.
Order No. 103 (March 9, 2020) 52 N.J.R. 549(a) (April 6, 2020), the $35 appointment fee is
waived; and
15. (No change.)
(b) All fees shall be paid by check or money order or electronic debit or credit card made payable
to: State of New Jersey--General Treasury. All Department fees are non-refundable after the
license effective date. For applicants for temporary insurance producer licenses permitted
by the Department as a result of the state of emergency and public health emergency
declared pursuant to Exec. Order No. 103 (March 9, 2020) 52 N.J.R. 549(a) (April 6, 2020),
the application fee of $150 and application processing fee of $40 must be paid by check
payable to “Treasurer, State of New Jersey.”
(c) – (d) (No change.)
I find that the modification of the rules at N.J.A.C. 11:17-2.10 and N.J.A.C. 11:17-2.13,as set forth
above, and is necessary because enforcement of the existing rules would be detrimental to the
public welfare during this emergency.
May 1, 2020
Date Marlene Caride,
Commissioner of Banking and Insurance
AV COVID-19 Notice of Rule Modification Temporary Insurance Producer License/COVID-19
