New Jersey Life Producer Law Practice Test

What action must a producer take to reinstate a voluntarily terminated license during the same license period?

1. Pay a reinstatement fee

2. Complete an approved continuing education course

3. Submit a new application for a license

4. Pass the producer licensing examination

The correct answer is: Complete an approved continuing education course

The correct action for a producer who wishes to reinstate a voluntarily terminated license during the same license period requires them to complete an approved continuing education course. In many states, including New Jersey, when a licensed producer takes voluntary action to terminate their license and then chooses to reinstate it within the same licensing period, they are typically required to demonstrate their commitment to maintaining their professional competence. Completing an approved continuing education course ensures that the producer is up to date with current laws, regulations, and practices within the insurance industry. Other options may imply additional requirements or misunderstandings regarding the reinstatement process. For instance, paying a reinstatement fee is often part of administrative procedures, but it is the educational component that stands out as a key requirement to ensure a producer's continued preparedness and compliance with industry standards. Reapplying for a new license or having to pass a licensing examination does not accurately reflect the typical process for reinstatement within the same licensing period, as these actions would be required in different contexts, such as when a license has lapsed for an extended duration or due to different circumstances.