State RegulationsNJ specificDifficulty 3/5
A New Jersey producer finishes a 2-year renewal period having earned 12 credits beyond the 24 required, but 3 of the excess credits are ethics credits. How does New Jersey treat the excess for the next renewal period?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
New Jersey's continuing education rules, administered by the New Jersey Department of Banking and Insurance, permit up to 12 credits to carry over into the next 2-year renewal period, but ethics credits never carry over. So the non-ethics portion of this producer's excess may be banked within the 12-credit limit, while the 3 excess ethics credits are lost for carryover purposes — though they counted fully toward the period just completed. The two-part rule (a 12-credit ceiling plus an absolute ethics exclusion) is the detail that trips up careless candidates.
Why the other options are wrong
- A) The carryover rule expressly excludes ethics credits, so the ethics portion cannot ride along with the rest.
- C) Carryover exists — up to 12 credits — so a blanket no-carryover rule overstates the restriction.
- D) The exclusion runs the opposite way: ethics is precisely the subject that may not carry over.
Memory hook
Bank up to twelve, but ethics never travels — it dies at renewal.