New Jersey Life Producer Law Practice Test

What is the maximum period a producer’s license can remain inactive before it lapses?

1. 12 months

2. 18 months

3. 24 months

4. 36 months

The correct answer is: 24 months

The maximum period a producer’s license can remain inactive before it lapses is 24 months. This means that if a licensed producer does not engage in licensed activity for a continuous period of 24 months, their license will no longer be valid. It's important for producers to stay informed about their licensing status and ensure they are meeting the necessary requirements to maintain their license. In the context of this question, choosing 24 months indicates an understanding of the regulations governing producer licenses in New Jersey. Knowledge of these timelines is crucial for producers to plan their professional activities accordingly and avoid any disruptions in their ability to operate within the industry. Properly managing the active status of a license can also prevent potential penalties or the need for retaking exams or completing additional continuing education requirements.