New Jersey property and casualty practice exam
Free property and casualty practice for the New Jersey producer exam: 367 general questions plus 15 New Jersey state law questions, each with an explanation.
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Getting your New Jersey property and casualty license
New Jersey requires 40 hours of pre-licensing for property and casualty combined, or 20 hours per line. PSI gives the exam at a test center or online with remote proctoring, and it costs $38.
- Exam provider
- PSI, at a test center or online with remote proctoring
- Exam fee
- $38
- Exam length
- Property producer: 79 questions, 3.5 hours. Casualty producer: 91 questions, 3.5 hours. New Jersey tests the two lines as separate exams.
- Passing score
- 70 percent correct.
- Pre-licensing education
- Property: 20 hours. Casualty: 20 hours. Property and casualty combined: 40 hours. Personal lines: 20 hours.
- License fee
- $150 for a 2-year license per major line
- Retakes
- You cannot book a new exam on the same day you take one
How to plan your retake
Retake rules by state - Continuing education
- 24 credits every 2 years, including 3 credits of ethics
Official links
- New Jersey Department of Banking and Insurance - official state insurance department
- New Jersey DOBI, Insurance Producer Licensing FAQs - exam provider information
Licensing facts checked on , against official sources. Fees and rules change, so confirm with the New Jersey Department of Banking and Insurance and your exam's candidate handbook before you register.
New Jersey state law questions
Every New Jersey question with its answer, explanation, and the law it comes from.
Licensing and CE
2 questions
1. How many credit hours of approved continuing education must a New Jersey producer complete during each licensing term to renew?
- 12 credit hours
- 16 credit hours
- 40 credit hours
- 24 credit hours
Show answer
N.J.A.C. 11:17-3.6(a) requires completion of 24 credit hours of approved continuing education during the previous licensing term.
2. Of a New Jersey producer's 24 required CE credit hours, three must be in approved courses related to:
- Flood insurance only
- Insurance fraud, professional ethics, or another subject required by the Commissioner for consumer protection
- Agency management and sales techniques
- Investment products
Show answer
N.J.A.C. 11:17-3.6(a) sets aside three of the 24 hours for fraud, professional ethics or other consumer-protection subjects the Commissioner requires.
Auto Insurance
11 questions
1. In the New Jersey Standard Policy, the lowest bodily injury liability option listed by DOBI is:
- $15,000 per person and $30,000 per accident
- $25,000 per person and $50,000 per accident
- $35,000 per person and $70,000 per accident
- $50,000 per person and $100,000 per accident
Show answer
The DOBI buyer's guide lists Standard Policy bodily injury liability as low as $35,000 per person and $70,000 per accident.
2. In the New Jersey Standard Policy, the lowest property damage liability option listed by DOBI is:
- $25,000 per accident
- $5,000 per accident
- $10,000 per accident
- $50,000 per accident
Show answer
The guide lists Standard Policy property damage liability as low as $25,000 per accident.
3. What PIP amount does the New Jersey Basic Policy provide for most injuries?
- $5,000 per person, per accident
- $15,000 per person, per accident
- $50,000 per person, per accident
- $250,000 per person, per accident
Show answer
The Basic Policy provides $15,000 PIP per person per accident, and up to $250,000 for certain specified injuries.
4. What property damage liability coverage does the New Jersey Basic Policy include?
- $25,000 per accident
- $10,000 per accident
- None
- $5,000 per accident
Show answer
The Basic Policy includes $5,000 per accident of property damage liability.
5. Bodily injury liability on the New Jersey Basic Policy is:
- Not included, but $10,000 for all persons per accident is available as an option
- Included at $15,000 per person
- Included at $35,000 per person
- Not available under any circumstances
Show answer
The Basic Policy does not include bodily injury liability by default; a $10,000 all-persons-per-accident option is available.
6. How much uninsured/underinsured motorist (UM/UIM) coverage does the New Jersey Basic Policy provide?
- $15,000 per person
- $25,000 per accident
- None
- The same as the liability limits
Show answer
DOBI lists UM/UIM coverage as 'None' on the Basic Policy; it is a limited-benefit alternative to the Standard Policy.
7. A New Jersey driver who selects the Limitation on Lawsuit option agrees to:
- Give up all medical benefits under PIP
- Waive all collision coverage
- Only sue for economic losses of under $15,000
- Not sue the at-fault driver for pain and suffering unless the injury meets a listed permanent-injury threshold
Show answer
Economic damages remain recoverable under the limitation option. The Basic Policy includes this limited right to sue.
8. Which of these is a PIP medical expense limit listed by DOBI for the New Jersey Standard Policy?
- $100,000
- $150,000
- $200,000
- $500,000
Show answer
DOBI lists PIP medical limits of $15,000, $50,000, $75,000, $150,000 and $250,000, and says some insurers may offer more than $250,000.
9. After the PIP medical deductible, a New Jersey insurer pays what share of the first $5,000 of medical expenses, according to DOBI?
- 100 percent
- 50 percent
- 80 percent, with the insured paying 20 percent
- 90 percent
Show answer
The guide explains that above the deductible, insurers pay 80% of medical expenses up to $5,000 and the insured pays 20%.
10. Which health coverage can NOT be used for the New Jersey 'health insurance primary' PIP option?
- Medicare and Medicaid
- An employer group health plan
- A private individual health plan
- A spouse's employer health plan
Show answer
DOBI states that Medicare and Medicaid cannot be used for the Health Care Primary option. The insured should confirm the plan covers auto accident injuries.
11. The New Jersey Special Policy for drivers eligible for Federal Medicaid provides:
- Full Standard Policy coverage at a discount
- Limited, medical-coverage-only auto insurance at a low annual cost
- Liability coverage only
- Collision coverage only
Show answer
The Special Policy makes limited auto coverage available to drivers eligible for Federal Medicaid, offering a medical-coverage-only policy.
Residual Markets
2 questions
1. The New Jersey FAIR Plan is operated by which organization?
- The New Jersey Homeowners Mutual Pool
- The Department of Environmental Protection
- The New Jersey Property-Liability Guaranty Association
- The New Jersey Insurance Underwriting Association
Show answer
DOBI describes the FAIR Plan as the New Jersey Insurance Underwriting Association, a backup source of property insurance.
2. The basic property coverage under the New Jersey FAIR Plan does NOT provide:
- Theft or personal liability coverage
- Fire coverage for dwellings
- Coverage for rental units
- Coverage for mobile homes
Show answer
The FAIR Plan provides basic property coverage but not theft or personal liability coverage; optional theft coverage became available as an attachment.
Key New Jersey terms
15 plain-English cards on New Jersey insurance law, from the New Jersey flashcard deck.
Licensing and CE
- New Jersey P&C prelicensing
- 20 hours for property, 20 for casualty, or 40 for the combined course. Personal lines needs 20.
- New Jersey P&C exams
- Property and casualty are tested separately by PSI: 79 property questions and 91 casualty questions, 3.5 hours each.
- New Jersey CE requirement
- 24 credit hours each licensing term, with 3 in insurance fraud, ethics or another consumer-protection subject the Commissioner requires.
- New Jersey exam delivery
- PSI gives the producer exams at a test center or online with remote proctoring.
- New Jersey P&C passing score
- 70 percent correct on each line's exam.
- New Jersey producer license term
- A resident producer license runs 2 years, with a $150 fee for each major line.
Auto Insurance
- New Jersey Standard Policy
- New Jersey's full auto policy. Bodily injury limits go as low as $35,000/$70,000 and property damage as low as $25,000.
- New Jersey Basic Policy
- A low-cost, limited auto policy: $15,000 PIP (up to $250,000 for certain injuries), $5,000 property damage, no UM/UIM.
- New Jersey Basic Policy bodily injury
- Not included by default; $10,000 for all persons per accident is available as an option.
- New Jersey Special Policy
- Medical-coverage-only auto insurance at low annual cost for drivers eligible for Federal Medicaid.
- Limitation on Lawsuit option
- The driver agrees not to sue for pain and suffering unless the injury meets a listed permanent-injury threshold. Economic damages stay recoverable.
- New Jersey PIP medical limits
- Standard Policy choices of $15,000, $50,000, $75,000, $150,000 or $250,000; some insurers offer more.
- New Jersey PIP copayment
- Above the deductible, the insurer pays 80 percent of the first $5,000 of medical expenses and the insured pays 20 percent.
- New Jersey health insurance primary option
- PIP option that makes the insured's health plan pay first for auto injuries. Medicare and Medicaid cannot be used for it.
Residual Markets
- New Jersey FAIR Plan
- Run by the New Jersey Insurance Underwriting Association as a backup source of basic property insurance. Basic coverage has no theft or personal liability.
Keep studying
The general topics make up most of the exam.
New Jersey exam questions
How many pre-licensing hours does New Jersey require for property and casualty?
40 hours for property and casualty combined, or 20 hours each for property, casualty, or personal lines alone.Source: New Jersey DOBI, Insurance Producer Licensing FAQs
Can I take the New Jersey insurance exam online?
Yes. PSI offers the producer exams remotely or in person at a PSI test center.Source: New Jersey DOBI, Insurance Producer Licensing FAQs
How soon can I retake the New Jersey exam?
Not on the same day. You can call the next day and may retest as soon as the day after, depending on space.Source: PSI, New Jersey Insurance Producer Candidate Information Bulletin (updated Sep 2026)
How much of the New Jersey property and casualty exam is state law?
State law is usually around 20 to 30 percent of a state's producer exam. Check the New Jersey candidate handbook from your testing provider for the exact content outline.
What does the New Jersey state law section cover?
Common areas include licensing and continuing education, auto liability minimums, cancellation and nonrenewal notice rules, and the guaranty fund. This page covers: Licensing and CE, Auto Insurance, Residual Markets.
Where do these state questions come from?
Each state question is written from the state's statutes, regulations, or insurance department guidance, and the source is linked under the answer so you can read it yourself.
Do I still need the general questions?
Yes. Most of the exam is general property and casualty knowledge. The full exam option here mixes 367 general questions with the New Jersey state law questions.