New Jersey Life Producer Law Practice Test

What is a New Jersey producer who resides in Pennsylvania but maintains a principal place of business in New Jersey referred to as?

1. A resident producer

2. A licensed producer

3. A nonresident producer

4. A dual-state producer

The correct answer is: A nonresident producer

A New Jersey producer who resides in Pennsylvania but maintains a principal place of business in New Jersey is referred to as a nonresident producer. This classification applies to individuals who are licensed to sell insurance in a state where they do not reside. Nonresident producers are required to meet specific licensing requirements in their home state and in any state where they wish to conduct business. In this case, even though the producer does business in New Jersey, they live in Pennsylvania, which makes them a nonresident producer in the context of New Jersey insurance regulations. The designation emphasizes that while they are active in the New Jersey market, their legal residence remains in Pennsylvania. This distinction is important for understanding the regulations, requirements, and compliance obligations that nonresident producers must follow when selling insurance across state lines.